São Paulo – With an industrial unit in Turkey since 2007, Metalfrio, a Brazilian company that makes refrigerators for the beverage, ice cream and frozen food industries, has in the Arab market one of its main buyers.
The company exports 20% of production from its Turkish factory, which totals 250,000 units per year, to Iraq, as well as selling to Libya and Saudi Arabia. "Iraq is the first main market for exports from Turkey. It is a very important client," said Luiz Eduardo Moreira Caio, the president at Metalfrio.
According to the executive, the company aims to further expand its business in the Middle East. "We are developing business with all the countries of the region," he said. Caio also added that he is greatly interested in entering the markets of Egypt and Syria, for example.
The president at Metalfrio said he chose Turkey for installation of a factory due to its strategic position. "The country serves as a base for export to Europe, Eurasia, North Africa and the Middle East," he pointed out. Half of the production from the Turkish unit is turned to export. Iran, Poland, the Ukraine, France, Kazakhstan, England and Romania complete the list of main markets. Caio explained that a significant part of the deals closed in the Arab countries are with Turks who live there. The executive considers this another competitive advantage of having a factory in Turkey, which is not an Arab country.
However, do not expect to enter bakeries and supermarkets in Turkey and see Metalfrio refrigerators. In the region, the company sells under brand Klimasan. The change was in 2008, when Metalfrio acquired Senocak Holding, then controlled by Klimasan, the main commercial cooling company in Turkey. "This greatly reduced our process for market penetration," explained Caio. According to the executive, the time for installation and development of the Metalfrio brand in the Turkish market could take five or six years.
Caio explained that the refrigerators produced in Turkey are practically the same as those made in Brazil, but with one differential. "In countries in where there are deserts, we use more powerful cooling, designed to operate at higher temperatures," he pointed out.
According to the businessman, the company profit in the third quarter of 2010 was 589 million reals (US$ 353 million), 28% more than in 2009. Caio explained that, over the last five years, Metalfrio has presented annual growth of 30%. Regarding the factory’s profit in Turkey, the executive said that it is "expected to grow by two digits, following the company’s annual rate of growth." According to him, the installed capacity at the Turkish factory is 550,000 units.
In the city of Manisa, where the Metalfrio unit in Turkey is located, the company employs 1,000 people. Metalfrio also has factories in Mexico, where it produces 100,000 refrigerators, and in Russia, where production totals 40,000 units. In Brazil, the factory in Três Lagoas, in Mato Grosso Sul, is responsible for the production of 350,000 refrigerators, of which between 7% and 8% are exported to countries in the Mercosur (the customs union that includes Brazil, Argentina, Paraguay and Uruguay). With distribution units in the United States, Denmark and the Ukraine, Metalfrio employs around 4,000 people.
*Translated by Mark Ament
