Paolo Rocca
Encyclopedia
Paolo Rocca is a prominent Italian Argentine
businessman.
. His father, Roberto Rocca
, was a mechanical engineer and the son of Agostino Rocca
, a prominent member of the Istituto per la Ricostruzione Industriale
(IRI, the centerpiece of the Mussolini
regime's corporate state) from 1933 to 1941, and the founder of Techint
, in 1945. The Roccas had left Italy
in 1946, and settled in Buenos Aires
. They retained close ties to the old country, however, and returned often to close business deals (including the acquisition of the senior Rocca's erstwhile employer, steelmaker Dalmine, in 1954).
Paolo Rocca anrolled at the University of Milan
, earning a degree in Political Science
. He later enrolled at the Harvard Business School
, earning a postgraduate degree. Following the founder's death in 1978, the presidency of Techint was transferred to Roberto Rocca, Paolo's father, and in 1985, the younger Rocca joined Techint as his father's assistant, reaching the rank of executive vice president in 1990.
Techint participated in the privatization
drive adopted by President Carlos Menem
in the early 1990s, purchasing a majority stake in Argentina's then-leading steel manufacturer, the state-owned Somisa, in 1992.
Rocca converted Somisa into Siderar, and integrated led Techint into the development of an integrated Techint's cold rolled steel operations (for which Somisa had long been a leading supplier, reportedly at a loss to the state concern) into Siderca. Between 1992 and 1996 Siderar raised its share of domestic consumption of flat steel (used in major aplliances and the auto industry, among others) from about 56 percent to about 79 percent. The group's acquisition of Tubos de Acero de Mexico (Tamsa, a steel tube maker) in 1993 resulted in the appointment of Paolo Rocca as the unit's director.
Agostino Rocca, Paolo's eler brother, became president of Techint in 1993, and of Siderca in 1996. He lost his life, however, in an April 28, 2001, aviation accident in Patagonia
. Paolo Rocca was appointed to the presidency, overseeing the listing of Siderca was on the NYSE and the reorganization of Techint's steel operations, the group's centerpiece, as Tenaris
, of which he became president on October 22, 2002. Basing the subsidiary in Luxembourg
, the move converted Techint into a holding
company.
Under Rocca's tenure, Techint established ProPymes, designed to promote its network of over 300 small business
suppliers, and merged Sidor
(a leading Venezuela
n steelmaker acquired in 1998), Hylsamex (acquired in Mexico
), and its Argentine Siderar name into Ternium
, a Luxembourg steelmaker acquired in 2005.
The decision of Venezuelan President Hugo Chávez
to nationalize Sidor came on the heels of a series of industrial disputes over the previous year. Compensation of around US$1.65 billion was agreed for the nationalisation of Ternium's 60% stake in Sidor, with the former keeping a 10% stake in the company, but frictions emerged with the Kirchner administration
in Argentina over their reported refusal to raise objections to the nationalization with President Chávez.
The Techint Group, which from 2003 to 2008 had invested US$2.3 billion in its Argentine operations, responded with Rocca's announcement that the conglomerate's trade finance
operations would be transferrd to neighboring Uruguay
.
Rocca was named president of the World Steel Association on October 13, 2009.
Italian Argentine
An Italian Argentine is a person born in Argentina of Italian ancestry. It is estimated up to 25 million Argentines have some degree of Italian descent...
businessman.
Life and times
Paolo Rocca was born in MilanMilan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...
. His father, Roberto Rocca
Roberto Rocca
Roberto Rocca was a prominent Italian Argentine businessman.-Overview:Roberto Rocca was born in Milan, in 1922, as the eldest son of Maria Queirazza and Agostino Rocca...
, was a mechanical engineer and the son of Agostino Rocca
Agostino Rocca
Agostino Rocca was an Italian Argentine businessman.-Life and times:Agostino Rocca was born in 1895 in Milan. His family relocated to Rome early in his childhood, and he completed secondary school studies at the Collegio Militare di Roma...
, a prominent member of the Istituto per la Ricostruzione Industriale
Istituto per la Ricostruzione Industriale
The Istituto per la Ricostruzione Industriale was an Italian public company set up by the fascist government in 1933 to combat the effects of the global depression on the Italian economy...
(IRI, the centerpiece of the Mussolini
Benito Mussolini
Benito Amilcare Andrea Mussolini was an Italian politician who led the National Fascist Party and is credited with being one of the key figures in the creation of Fascism....
regime's corporate state) from 1933 to 1941, and the founder of Techint
Techint
Techint is a conglomerate multinational company founded in Milan in September 1945 by Italian industrialist Agostino Rocca and headquartered in Milan and Buenos Aires . Techint comprises more than 100 companies operating worldwide in the following areas of business: Engineering & Construction,...
, in 1945. The Roccas had left Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
in 1946, and settled in Buenos Aires
Buenos Aires
Buenos Aires is the capital and largest city of Argentina, and the second-largest metropolitan area in South America, after São Paulo. It is located on the western shore of the estuary of the Río de la Plata, on the southeastern coast of the South American continent...
. They retained close ties to the old country, however, and returned often to close business deals (including the acquisition of the senior Rocca's erstwhile employer, steelmaker Dalmine, in 1954).
Paolo Rocca anrolled at the University of Milan
University of Milan
The University of Milan is a higher education institution in Milan, Italy. It is one of the largest universities in Europe, with about 62,801 students, a teaching and research staff of 2,455 and a non-teaching staff of 2,200....
, earning a degree in Political Science
Political science
Political Science is a social science discipline concerned with the study of the state, government and politics. Aristotle defined it as the study of the state. It deals extensively with the theory and practice of politics, and the analysis of political systems and political behavior...
. He later enrolled at the Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
, earning a postgraduate degree. Following the founder's death in 1978, the presidency of Techint was transferred to Roberto Rocca, Paolo's father, and in 1985, the younger Rocca joined Techint as his father's assistant, reaching the rank of executive vice president in 1990.
Techint participated in the privatization
Privatization
Privatization is the incidence or process of transferring ownership of a business, enterprise, agency or public service from the public sector to the private sector or to private non-profit organizations...
drive adopted by President Carlos Menem
Carlos Menem
Carlos Saúl Menem is an Argentine politician who was President of Argentina from 1989 to 1999. He is currently an Argentine National Senator for La Rioja Province.-Early life:...
in the early 1990s, purchasing a majority stake in Argentina's then-leading steel manufacturer, the state-owned Somisa, in 1992.
Rocca converted Somisa into Siderar, and integrated led Techint into the development of an integrated Techint's cold rolled steel operations (for which Somisa had long been a leading supplier, reportedly at a loss to the state concern) into Siderca. Between 1992 and 1996 Siderar raised its share of domestic consumption of flat steel (used in major aplliances and the auto industry, among others) from about 56 percent to about 79 percent. The group's acquisition of Tubos de Acero de Mexico (Tamsa, a steel tube maker) in 1993 resulted in the appointment of Paolo Rocca as the unit's director.
Agostino Rocca, Paolo's eler brother, became president of Techint in 1993, and of Siderca in 1996. He lost his life, however, in an April 28, 2001, aviation accident in Patagonia
Patagonia
Patagonia is a region located in Argentina and Chile, integrating the southernmost section of the Andes mountains to the southwest towards the Pacific ocean and from the east of the cordillera to the valleys it follows south through Colorado River towards Carmen de Patagones in the Atlantic Ocean...
. Paolo Rocca was appointed to the presidency, overseeing the listing of Siderca was on the NYSE and the reorganization of Techint's steel operations, the group's centerpiece, as Tenaris
Tenaris
Tenaris is a global manufacturer and supplier of seamless and welded steel pipe products and provider of pipe handling, stocking and distribution services to the oil and gas, energy and mechanical industries...
, of which he became president on October 22, 2002. Basing the subsidiary in Luxembourg
Luxembourg
Luxembourg , officially the Grand Duchy of Luxembourg , is a landlocked country in western Europe, bordered by Belgium, France, and Germany. It has two principal regions: the Oesling in the North as part of the Ardennes massif, and the Gutland in the south...
, the move converted Techint into a holding
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
company.
Under Rocca's tenure, Techint established ProPymes, designed to promote its network of over 300 small business
Small business
A small business is a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned corporations, partnerships, or sole proprietorships...
suppliers, and merged Sidor
Sidor
Siderúrgica de Orinoco C.A. "Alfredo Maneiro" is the biggest Venezuelan steel corporation. The company is situated in an industrial zone in Ciudad Guayana, Bolívar State, near the Orinoco River. Major iron deposits were found in the area in 1926 and 1947...
(a leading Venezuela
Venezuela
Venezuela , officially called the Bolivarian Republic of Venezuela , is a tropical country on the northern coast of South America. It borders Colombia to the west, Guyana to the east, and Brazil to the south...
n steelmaker acquired in 1998), Hylsamex (acquired in Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
), and its Argentine Siderar name into Ternium
Ternium
Ternium is a manufacturer of flat and long steel products with production centers in Argentina, Mexico, Guatemala, Colombia and the United States...
, a Luxembourg steelmaker acquired in 2005.
The decision of Venezuelan President Hugo Chávez
Hugo Chávez
Hugo Rafael Chávez Frías is the 56th and current President of Venezuela, having held that position since 1999. He was formerly the leader of the Fifth Republic Movement political party from its foundation in 1997 until 2007, when he became the leader of the United Socialist Party of Venezuela...
to nationalize Sidor came on the heels of a series of industrial disputes over the previous year. Compensation of around US$1.65 billion was agreed for the nationalisation of Ternium's 60% stake in Sidor, with the former keeping a 10% stake in the company, but frictions emerged with the Kirchner administration
Kirchnerism
Kirchnerism is a term used to refer to the political philosophy and supporters of Néstor Kirchner, president of Argentina from 2003 to 2007, and of his wife Cristina Fernández de Kirchner, President from 2007...
in Argentina over their reported refusal to raise objections to the nationalization with President Chávez.
The Techint Group, which from 2003 to 2008 had invested US$2.3 billion in its Argentine operations, responded with Rocca's announcement that the conglomerate's trade finance
Trade finance
Trade finance is related to international trade.While a seller can require the purchaser to prepay for goods shipped, the purchaser may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support...
operations would be transferrd to neighboring Uruguay
Uruguay
Uruguay ,officially the Oriental Republic of Uruguay,sometimes the Eastern Republic of Uruguay; ) is a country in the southeastern part of South America. It is home to some 3.5 million people, of whom 1.8 million live in the capital Montevideo and its metropolitan area...
.
Rocca was named president of the World Steel Association on October 13, 2009.