São Paulo – Arab countries are considered strategic export targets by Kits Paraná, a furniture manufacturing company based in the municipality of Arapongas, in the interior of the state of Paraná. The company has clients in the United Arab Emirates, Algeria, Iraq and Saudi Arabia, and plans to invest in increasing its sales to the region.
"In 2011 we will go to the Big 5 Show building sector fair, in Dubai, and we are already seeking a local partner to assemble our furniture, as it needs to be shipped disassembled. The specialized labour necessary to put it together is often lacking. It would be ideal to find a businessman capable of developing that part," said Leonardo Squilino, export manager at Kits Paraná.
The first deals with Arab importers were closed four years ago with an importer from Dubai, in the Emirates. Then came the business with an importer from Algeria. An interesting fact is that the Arab importers came to Brazil and visited the company. “It was they who found us, visited our factories and started the business," said the manager. The company also goes on sporadic trips to Iraq and Saudi Arabia.
According to Squilino, the Arab countries represent just 10% of the total exported by the factory, but the promise is to expand participation significantly in coming months. "We believe it is possible to grow in the Middle East and North Africa," he said.
Most of the company’s furniture that is shipped to the Arab market requires adaptation regarding size and colour. “Our client in Algeria, for example, is a supplier for high-end house condominiums and requires different standards from those of Brazil. They are normally larger items of furniture with wooden tones, special darker ones. In the lower-end line, there are no demands regarding size, just colour. Wooden tones are also preferred," he explained.
Exports still represent a small share of the company revenues, around 7% of the 288 million Brazilian reals (US$ 162 million) in yearly revenues. “In 2009 we exported close to 20 million reals (US$ 11 million). However, if the company exported 20%, it would become the main furniture exporter of Brazil," he said.
"Despite their low significance, company exports grow with each year," said the manager. In 2008, they expanded by 30%, in 2009, expansion was 18%, as it was a crisis year, and, for 2010, the forecast is for growth of between 22% and 24%.
The furniture is made out of MDF, wood-fibre, and MDP, which is a kind of board made out of wood particles, more used in the production of lower-end furniture.
With four factories in Arapongas, the company generates 900 direct jobs and produces 225,000 items a month. It started exporting around 10 years ago to the countries in Central America. Today, Chile and Argentina are the main destinations for company foreign sales.
Contact
Site: www.kitsparana.com.br
E-mail: sales@kitsparana.com.br
Telephone: (+55 43) 3275-0500
*Translated by Mark Ament
