Omar Nasser, from Fiep*
Curitiba – Despite the conflicts, Iraq has not stopped offering business opportunities to various companies. Among them is Maringá Soldas, a company from the city of Curitiba, capital of the southern Brazilian state of Paraná, which is specialized in the production of cylinder heads for lorries and tractors. The first two shipments to the country, totalling 200 items for US$ 80,000, took place in November 2004 and April this year. A third shipment is scheduled for this month. Over 100 products will be shipped abroad, for a total of US$ 40,000.
Brazil has been standing out in the Middle East and North Africa not only as a supplier of agricultural commodities, but also as a producer of goods with greater added value and technological weight. In turn, the Arab countries, most of them in regions with high temperatures, arise as an important market for spare parts. "The region is very hot and that causes problems to machinery," explained Cássia Imai, joint export director at Maringá Soldas.
The company client in Iraq is Al-Rahma, a large auto parts distributor which purchases mostly cylinder heads for tractors. When asked whether the conflict the country is going through affects the business, Cássia is emphatic: "No". One of the secrets is knowing who the customer is. "We met him in person, as he has participated in many fairs," she explained. Another is choosing the correct method to receive the money which, in the case of Maringá Soldas, is done in advance. "We only ship once the value has been deposited."
Maringá Soldas exports to the Middle East, however, are not restricted to Iraq. Through Ghorban Ronaghi Soufiani, an exclusive distributor located in Tehran (in Iran, which is not an Arab country), the cylinder heads produced in Curitiba reach, also, the United Arab Emirates and Syria.
To Cássia, the Arab market represents a very large potential for Brazilian industry. He pointed out that the countries in the region are opening themselves economically to the West. Apart from that, some of them are seeking suppliers to replace North American products, thus opening space to Brazilian exporters.
The Arab Brazilian Chamber of Commerce (CCAB) has even identified the auto parts sector as one of great potential in the region. In this respect, the organization is going to promote Brazilian company participation in Saudi Motorshow, an auto sector fair to take place in November in Saudi Arabia.
*Federation of Industries of the State of Paraná. Translated by Mark Ament
