Can you provide some historical background about Thorsa?

Thorsa is a valve manufacturing company that has been operating for more than 30 years in Argentina. It has established itself as one of the leading valve makers in the country, with a primary focus on the production of gate, globe, and check valves. Thorsa offers competitive delivery times and high-quality products, exclusively catering to the local market.

How did YPF’s re-nationalization affect Thorsa?

Thorsa has been positively impacted by YPF’s re-nationalization. With YPF’s aggressive investment plan in conventional areas and in Vaca Muerta unconventional oil fields, the promotion of local goods has led to the substitution of imports. Thorsa was quick to support the initiative by introducing new developments and capital investments.

How important is the oil and gas industry to Thorsa’s revenue?

The oil and gas industry is a significant part of Thorsa’s business, with customers across all industry sectors. In 2014, the oil and gas industry contributed to more than 80% of the company’s revenue. Thorsa has grown exponentially with YPF’s purchase of gate, globe, and check valves, with most of the valves coming from Thorsa. To accommodate this growth, Thorsa has invested in a 7,500-square-meter plant fully equipped with computer numerical control (CNC) machines, large automated valve test benches and lifting devices, and another 7,000-square-meter facility located in the Ezeiza industrial park, which is dedicated to future expansion.

Which type of valve contributes most to Thorsa’s revenue?

Thorsa offers both standard and tailor-made valves. The most in-demand valve is the gate valve, primarily used by oil and gas downstream and petrochemical customers. Thorsa customizes the valve’s design and material according to the client’s requirements and the valve’s final application. The usual modifications involve pressure, gaskets, rings, and opening and closing systems.

To what extent is Thorsa working on innovating the design of its valves?

Thorsa, along with its sister companies, is constantly modifying current valves and designing new ones. This process is partially motivated by YPF and the national government’s push to substitute imports. In the area of gate, globe, and check valves, Thorsa is exploring the use of special coatings, surface technologies, and new materials. The innovation process focuses on the research and design of globe-control valves, partial-sphere control valves, choke valves, actuators, and control systems like emergency shutdown systems and safety instrumented systems.

How competitive is the valve market in Argentina?

The valve market is highly competitive in Argentina, with several local manufacturers. Thorsa faces stiff competition from valve manufacturers who both manufacture and import valves. However, Thorsa has been able to dominate a significant share of the valve market in Argentina by meeting YPF’s specifications, offering competitive prices, and providing quality service. Thorsa is currently the most important player in the market for gate, globe, and check valves in Argentina.

What kind of opportunities do import restrictions represent for local manufacturers?

Import restrictions provide a unique opportunity for local manufacturers to develop their capabilities and trigger new investments. The challenge, however, is to develop the local industry to become competitive in international and restriction-free markets. This can be achieved by reducing manufacturing costs and developing more value-added products through innovation. Local manufacturers can also take advantage of credit opportunities, which offer low interest rates for the purchase of machinery.