Marina Sarruf*
São Paulo – Nine Brazilian companies are going to participate in Automechanika Gulf, a fair in the auto parts sector to take place between May 28 and 30 in Dubai, United Arab Emirates. This is the first time that the Arab Brazilian Chamber of Commerce is going to participate in the fair, and participation will be in partnership with the Brazilian Association of Auto Parts Manufacturers (Sindipeças).
"We identified the auto parts sector as one with great potential for Brazilian companies. Automechanika has great chances of becoming one of the key fairs in which the Arab Brazilian Chamber of Commerce participates," stated the president of the organization, Antonio Sarkis Jr.
According to information supplied on the fair site, the value of auto parts sales in Dubai last year totalled US$ 4.9 billion, against US$ 3.5 billion in 2004. Regarding the value of imports of auto parts into Dubai, the total was US$ 3 billion in 2005, against US$ 2.2 billion in the previous year. "Sector figures in the Emirates show the certainty of the good contacts that may take place at the fair," stated the secretary general at the Arab Brazilian Chamber, Michel Alaby.
Another point mentioned by Alaby was that Dubai is also a great re-exporter of auto parts. Last year, sector re-exports totalled US$ 1.6 billion, against US$ 1.1 billion in 2004.
"Dubai is a gateway into other Arab countries," stated Roberto Frantz, export manager at auto parts producer Autotravi Borrachas, which makes rubber profiles and trim. This is the second time that the company, based in the city of Caxias do Sul, in the southernmost Brazilian state of Rio Grande do Sul is going to participate in Automechanika. "We want to proceed with the contacts we made in the previous edition," explained Frantz. Autotravi Borrachas already exports to 25 countries, but is not yet present in the Arab market.
According to Frantz, the company produces 200 tonnes of rubber a month and exports 18% of production. Autotravi Borrachas is a supplier to bus body makers Marcopolo and Busscar, to agricultural equipment industries like John Deere, Case New Holland (CNH) and AGCO, among others.
To the export manager of company Suporte Rei, Antonio Carlos Benetão, who is also going to participate in the fair, Automechanika may open new markets to the company. "We have already exported to the Emirates and Palestine, and now we want to reach countries in North Africa," stated Benetão. Suporte Rei produces auto parts for Mercedes Benz, Volkswagen, Scania, Volvo, Chevrolet, Ford and Toyota, among others. "The Arab market has great potential for the heavy product line," stated Benetão.
According to him, the company has been exporting to the Arab market for five years and last year company representatives were in Dubai to visit their clients. Suporte Rei exports to 50 countries and has monthly production of 400,000 items. Around 10% of company revenues are turned to export.
Another company to participate in the fair is Frum, a maker of break disks and drums and wheel hubs. The company already exports to the Arab market through traders. "Our interest is in selling to the region. I believe that we have great chances in this market," stated Fernando Neves Espinhola, who is in charge of the export department at Desordi, a Frum representative.
Frum has monthly production of 2,000 tones and exports around 10% of production to 30 countries. After the fair in Dubai, Espinhola is going to visit clients in Jordan, Egypt, Lebanon, Syria and Saudi Arabia.
In the case of Metalúrgica, Indústria e Comércio (Mic), on the other hand, the fair is going to open space for the company to enter the Arab market. "We started exporting to Latin America and South Africa last year, and now we want to reach the Arab market," stated the export representative at Mic, Stefan Ritsche.
Auto parts from Brazil
Brazilian exports of auto parts to the Arab countries grew 89.4% last year when compared to 2004, according to figures supplied by Sindipeças. Foreign sales to the region totalled US$ 94 million last year. The Arab countries that most imported from Brazil last year were the United Arab Emirates, Qatar, Egypt and Saudi Arabia. Total auto parts exports from Brazil were US$ 7.4 billion in 2005, with growth of 23.5% when compared to the previous year.
Brazilian imports of sector products from the Arab world totalled US$ 600,000 last year, representing growth of 57.9% over 2004. The main Arab countries that exported to Brazil were the United Arab Emirates, Tunisia and Egypt. In total, last year Brazil imported the equivalent to US$ 6.65 billion, growth of 18.9% over the result for 2004.
Automechanika
The organizers of Automechanika hope to receive 8,000 visitors this year, against 7,100 in the previous edition, in 2004. Around 500 companies from 40 countries are going to exhibit at the fair, which will cover an area of 16,785 square metres. The fair will take place at the Dubai World Trade Centre.
The Brazilian stand will cover an area of 90 square metres and will count on the following companies: Bins, Rings and Forks International (RFI), Alfatest, Fras-Le, Zen, ECS Brasil, as well as Frum, Suporte Rei, MIC and Autotravi Borrachas.
*Translated by Mark Ament
