São Paulo – The Brazilian storage equipment manufacturing company Kepler Weber is implementing a plan to increase export volume and competitiveness. The strategy includes the Middle East and North Africa and involves finding regional or local partners to supply peripheral products such as metal towers, footbridges and pipes to Kepler’s projects.
“We will not outsource our core business,” says Kepler Weber export manager Antônio Campos, referring to silos and driers. Peripheral equipment makes up 15% to 20% of each project and takes up significant space in ships when it comes to exporting. By finding suppliers in each importing country, we should cut down logistics costs and make room for our main products at Kepler plants.
Much of the raw material for peripheral products manufacturing is imported. For Kepler to export its products, peripherals must be brought to Brazil so the items can be manufactured and then shipped back abroad. The goal is to streamline this process. Campos does not rule out the possibility that these partnerships may lead to business opportunities and new technologies in the future. However, the initial emphasis is on cost cutting and competitiveness.
Kepler Weber already has a partner company in Turkey it is about to start working on a pilot project with. The partnership was made effective approximately three months ago, but joint work should only begin next year, according to Campos. The process leadign up to the partnership was lengthy; Kepler assessed several companies, checking raw materials, product quality and software compatibility, among other aspects.
The Turkish company may operate in projects in Turkey or in neghbouring countries. The same will apply to future partners, but Kepler Weber will conduct feasibility studies on a case-by-case basis, considering fiscal issues, among other aspects.
Kepler Weber is already looking into potential partners in Saudi Arabia and Egypt. Another Arab country it should seek suppliers in is the United Arab Emirates. These countries are being considered because they have the industrial parks required by Kepler. Plans also include eventual implementation of the project in Latin America, which accounts for 70% to 80% of the company’s exports.
Approximately 5% of the company’s exports go to the Middle East and North Africa. Kepler Weber is stepping up its operations in the Arab world. Currently, the company’s leading markets in the region are Egypt, Emirates, Saudi Arabia, Jordan and Yemen. The company has done good business with other Arab countries in the past, such as Syria and Iraq, before political and social issues erupted. According to Campos, the company does not lose sight of markets such as Libya, Algeria and Morocco, which it regards as potential targets.
Kepler Weber is Brazil’s leading grain storage equipment manufacturing company. In Q2 this year from Q2 2013, Kepler posted a 76% increase in net revenue, to R$ 226.7 million (US$ 95.4 million), and a 188.2% increase in net profit, to R$ 25.1 million (US$ 10.5 million).
Contact:
Kepler Weber
Website: www.kepler.com.br
Telephone: +55 (55) 3375 9800
*Translated by Gabriel Pomerancblum
