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Right Products Driving
Argentina's Autos

Fifth spot out of 16 is not a bad place to be if you take into consideration it took TaeguTec Argentina over two years to get there since their office become a subsidiary.

Being in fifth puts them way ahead of the pack and in the realm of the big boys. It is also a position where TaeguTec Argentina keeps looking ahead and up towards gaining that coveted number one spot in one of Latin America's giant economies.

Of course, TaeguTec was in Argentina before 2010 but business was so good that they were uplifted from distributor to full-fledged subsidiary and part of the TaeguTec family which includes support beyond their wildest dreams.

The road to five was not an easy one but it was one filled with hard work, dedication and an attitude geared towards making inroads into new companies.

TaeguTec Argentina's main customer base is located in the highly lucrative and competitive automotive sector where the country's industry has driven into third place in Latin America after Brazil and Mexico.

The cutting tool company's philosophy on how to enter new companies is simple: to demonstrate the advantages of TaeguTec tools to the right person in charge of purchasing.

Two instances stand out according to Alfredo Micheletti, president of TaeguTec Argentina; both in the automotive industry and in both cases, TaeguTec showed that their tools can out-machine by five hours the tools from the biggest boys in the industry.

The names of the two customers are held due to the customers’ request but in the end, TaeguTec was able to showcase their CBN tools into two major automotive producing parts companies in Argentina.


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“It took TaeguTec three hours to do what the competitor was doing in eight hours, that is a big difference,” said Mr. Micheletti.

One of the companies machine chromium steel with a hardness grade of 58 into crankshafts for locally produced cars.

Both projects took roughly six months to garner an order for the TaeguTec Argentina team but in the end, both companies are satisfied with the production output and amount of money they are saving compared to the other companies they were previously dealing with.

Representing almost 8.5 percent of the country's industrial gross production value and playing a key role in job creation and technology transfer, Argentina's auto industry holds great promise for a country that has suffered tremendous economic setbacks during the last 100 years.

Argentina's car industry is highly concentrated with the Top 4 brands – Chevrolet, Ford, Renault and Volkswagen – covering 62 percent of January 2012's market.

Industry forecast for 2013 shows that Argentina could join the 1 million sales club if inflation does not continue to rise faster than salaries.

TaeguTec Argentina continuously receives some of the best products in the business from its headquarters in South Korea where research and development come as natural as a fish to water.

TaeguTec has expanded various designations for both the ChaseMill and Chase2Mill line of cutting tools, a welcome addition to any manufacturer looking to expand its capacity to increase the machining of bearing caps while lowering the cost of production.

The new designations added to the ChaseMill and Chase2Mill products features no interference shank type end-mills (D=d +1mm & d=D -1mm), cutter diameters that are available in both fine and course pitch types for a wider range of applications and inch type bore face mill cutters.

Drilling bearing caps as well as bedplates, cylinder blocks, crankshafts, connection rods and various other parts has become easier with the expansion of TaeguTec’s most versatile new indexable drill, the DrillRush, excellent for pre-thread hole drilling in chamfering and counter-boring of blind and through-holes.


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Pre-thread drilling is a complex operation across a wide range of applications; the DrillRush enables end-users to perform pre-thread holes reliably and economically on ISO M standard pre-thread holes (M10—M24).

The line's versatility now eliminates the need for step drills reducing excess inventory and down-time, both areas where the auto manufacturing industry always looks for advances and improvements to the current line of tools available in the market.

One area of concern for TaeguTec Argentina is their lack of qualified salespeople, a problem that showcases the company's fast growth in a highly competitive export oriented market.

The other is inflation and the stagnate peso compared to the surging U.S. dollar. The challenge now for many Argentinean companies is the possibility of increasing their prices to reflect the reality at home there by making it difficult to export products even to reliable trading partners in Brazil and Mexico.

What can help manufacturing companies cut costs and increase productivity is the crème-de-la-crème in the TaeguTec line, the new GoldRush line of CVD and PVD coated carbide grades with patented surface treatment technology which has been helping to drive the South Korean automotive industry into world leaders.

The cherry on the icing is the BlackRush series with its ultra-modern coating technology that can tackle any machining job within the automotive, oil and gas and general machining industries.

Whatever the application or material may be, TaeguTec’s line of cutting tools offers high-quality answers to not only common machining solutions but also complicated challenges brought on by the industry, the material or by economic conditions.


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TaeguTec is renowned for its specialist tungsten carbide cutting tools, tungsten powders, tungsten carbide rolls and industrial products. The specialist tooling engineers at TaeguTec are continually introducing innovative new methods of producing cutting tools for the metal cutting industry, to deliver some of the best cutting tool solutions to various market sectors such as the automotive, mold and die, aerospace and heavy industry sectors. For further information on TaeguTec products, please visit TaeguTec website www.taegutec.com

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