Geovana Pagel
São Paulo – Tramontina, a Brazilian group that has been exporting to Arab countries for 30 years, intends to double business with the region up to 2005. According to company president Clóvis Tramontina, sales to the Middle East and North Africa have been rising by an annual average of 15% to 20%, and currently represent around 5% of company export, or US$ 1.35 million. "Our target is to increase this figure to 10% over the next two years ", he said.
Export by the group, which specializes in cutlery, tools, pots and pans, electrical equipment, domestic utensils, plastic and wooden articles, has represented an average of 30% of annual revenue. The company expects this value to be over US$ 90 million for 2003.
The first Tramontina export occurred in 1969, to Chile and the United States. Business with Arab countries started in 1973, with Jordan. Two years later, sales to Lebanon took place, and in 1979, to Saudi Arabia. "As from 1980 export started becoming more regular", said the businessman, in an interview to ANBA.
The group president guarantees that the main objective for 2004 is consolidation of the market position that has been reached, and an increase of participation in Arab markets. The main products exported to the Middle East and North Africa include kitchen knives, professional knives, cutlery, and manual tools.
Own structure abroad
The Brazilian group operates through a network of distributors and representatives established in seven countries in the Arab region: Saudi Arabia, Qatar, the United Arab Emirates, Egypt, Kuwait, Lebanon and Morocco. "This is also how the company operates in other countries where Tramontina has established structures, such as the United States and Germany", he explained.
Clóvis Tramontina stated that Arab markets have made specific demands, but these were mainly related to packaging adequacy and coloring. "In some cases it was necessary to develop products and models specially for markets in the region."
The executive went on to say that Arab countries are very demanding regarding quality and delivery time. "As these are very competitive markets, sales price is a determinant factor. Arab customers also consider personal relationships very important", he pointed out.
Family company
Established in 1911, Tramontina is a group consisting of 10 factories, six distribution centers in Brazil, and six distribution centers abroad. The company employs around 4,800 people, and exports products to over 100 countries. Company capital is 100% Brazilian, and belongs to three family holdings.
Company production units put out over 3.5 million units of stainless steel cutlery, one million screwdrivers, 400,000 hammers, 170,000 mattocks and 170,000 stainless steel pots and pans. The company main product line, domestic utensils, answers to around 80% of revenue on the Brazilian market, and 75% in international business.
General administration of all activities is concentrated in Carlos Barbosa, a small 20,000 inhabitant city in the mountain range in southern Brazilian state of Rio Grande do Sul (RS), 115 km away from state capital Porto Alegre.
Factory location
In Carlos Barbosa (RS): Tramontina TEEC – Technology in kitchen equipment, Forjasul Eletrik, Tramontina Cutelaria, and Tramontina Ferramentas.
In Encruzilhada do Sul (RS), is Forjasul Encruzilhada Indústria de Madeiras; in Farroupilha (RS), Tramontina Farroupilha Indústria Metalúrgica; in Garibaldi (RS), Tramontina Garibaldi Indústria Metalúrgica; in Canoas (RS), Forjasul Canoas; and in Belém (in the northern state of Pará), Tramontina Belém and Tramontina Icoaraci.
Contact
www.tramontina.com.br
