The Profand Group said it has reached an agreement to lease and operate the processing assets of the former Alpesca processing facility – which had previously been leased and operated by Red Chamber – as part of an investment in its Argentinian operations.
Profand said Profand Argentina, through its subsidiary Pesquera Deseado, has signed an agreement with the province of Chubut, Argentina, to lease the Alpesca facility. Per the agreement, which will begin 1 October, Profand guarantees it will retain Alpesca’s current workforce.
Argentine publication Pescare reported Profand would be the tenant of the former Alpesca facility and reported the company plans a EUR 70 million (USD 82 million) modernization and expansion plan for the facility.
The agreement comes after former operator Red Chamber’s lease of the Alpesca facility was terminated by the province of Chubut. Revista Puerto reported the company had ARS 2.52 billion (USD 1.8 million, EUR 1.5 million) in outstanding rent. According to the publication, the former Alpesca property was under the province of Chubut’s jurisdiction because it was declared a public utility subject to expropriation.
Chubut Governor Ignacio Torres reportedly said Red Chamber committed multiple breaches of the contract that allowed it to lease and operate the facility.
Red Chamber claims the termination is illegal, and Revista Puerto reported the company was suing Chubut over the decision. Other Argentine media reports claimed that Profand was already working with Chubut prior to the announcement. Revista Puerto reported Red Chamber argued in court that a “survey” performed by Argentina’s National Appraisal court was actually an illicit maneuver to harm the company.
A complaint filed in Argentine Court by Red Chamber claims “technical advisors” brought into a delegation had document numbers that would have meant they were actually minors and claimed the two individuals didn’t share their real names and had a noticeable accent from Spain.
Profand respondend by saying the reports are baseless and that the recent agreement only came about after Red Chamber’s proceedings with Chubut.
Regarding reports published in recent weeks, the company deems it appropriate to clarify that formal negotiations with the provincial administration only began after the contract termination had been communicated to the previous lessee,” Profand said. “During the process, the administration assessed the technical, financial, and human capacity of several companies in the sector, including Profand, which ultimately resulted in the signing of today’s agreement.”
