The awarding of Indian pipes for Vaca Muerta to a cheaper bid than Techint's has strained relations between Paolo Rocca and Javier Milei's government. The president accused the businessman of high prices and called him 'Don Chatarrín de los tubitos caros'. This divides the business elite, with the UIA seeking to calm tensions while some celebrate the competition.
On November 30, 2023, shortly after the runoff election that chose Javier Milei as president, a Techint representative explained to Perfil the group's contributions to La Libertad Avanza's campaign: 'As we couldn't provide poll watchers, because employees are free to vote as they wish, we did it with contributions.' This initial pragmatic alliance has soured after the recent awarding to Southern Energy (SESA) of Indian pipes from Welspun to connect Vaca Muerta to the Golfo San Matías, outbidding Tenaris, a Techint subsidiary, by 45%.
The government turned this tender into a test case to discipline the establishment. Federico Sturzenegger and Milei criticized Rocca, accusing him of wanting to 'play all in' to topple the government after Buenos Aires province elections. 'It's a message of admonishment,' said a productive sector source. Techint is considering a dumping complaint, alleging prices below costs in India, but the Casa Rosada rejected anti-dumping measures.
Paolo Rocca, an influential industry voice, praised macroeconomic stability but demanded policies against China and India. In the UIA, where Rocca holds sway, the focus is on 'structural asymmetries' like taxes and logistics, prioritizing investment under the RIGI over 'buy national.' The UIPBA, linked to Techint, emphasized local product safety: 'If a product doesn't meet national standards, the risk falls on all of us: industry, jobs, and consumers'.
In business circles, some see missteps by Techint for not matching the bid in time. A pro-Milei CEO defended: 'Opening is good. Competition is healthy and the country has changed.' The conflict continues in future tenders, like the gas pipeline for GNL in 2028, where competitors like Marcelo Mindlin's Tecpetrol clash with Techint, despite alliances in VMOS for 2026.
Economists Mario Raccanello and Alan Cosentino Gattone from the Center for Economic History Studies view the Rocca case not as good or bad entrepreneurs, but as a lack of strategy and industrial decline.
