São Paulo – The Brazilian grain storage equipment manufacturing company Kepler Weber wants to expand its business in the Arab market. “The Arab countries are a target market for us. It is a market to be developed,” says João Tadeu Franco Vino, the company’s commercial superintendent. “For such, we have even hired a Syrian to tend to our business in the region, because we had a hard time with the language,” says the executive.
The company has carried out works in the United Arab Emirates, Syria and Egypt. After the political and social crisis which befell the latter two, which were regarded as important clients, other countries entered the radar. “We are focusing on Sudan, and we are also prospecting for deals in Saudi Arabia and Jordan,” says Vino. “Sudan is developing its agriculture, and there are even some Brazilians farming there,” he explains.
The most recent work executed by Kepler Weber in an Arab country was delivered in late May to the El Mona company, one of the leading flour mills in Egypt. The grain storage unit was installed in the city of Al Sharquia, 110 kilometres away from Cairo. The unit has capacity for 48,000 tonnes and comprises a set of eight silos, two cleaning machines, three lifts, horizontal grain conveyors, and two transport silos.
The work was the company’s third in Egypt, and its first for El Mona. Construction of the complex took ten months to complete at a total cost of US$ 5 million, including infrastructure works. Kepler’s actual equipment cost US$ 2 million. “We are in the process of selling new works,” says Vino of business in the Arab country.
In the first quarter of 2012, Kepler Weber posted 23.2 million reals (US$ 11.2 million) in export revenues. According to Vino, exports account for 20% of the company’s total revenues. He says the company has plans to increase that share until 2018, but does not disclose by how much.
Uruguay is currently the leading foreign market for Kepler Weber. In addition to the Middle East and Africa, the company is aiming to expand its presence in South and Central America.
Attending trade shows and seeking representatives are the avenues taken by the company to boost its international actions. “Trade shows are quite interesting. In countries where we have no representatives, people always come up who want to represent us. In those where we do have representatives, new deals arise. These shows are bringing in good returns for the company,” says Vino of events in Arab countries.
In the region, the company has attended trade shows such as Saudi Agrofood, Sudan’s Khartoum International Fair and Algeria’s Djazagro. According to Vino, sales to Arab countries account for 10% of exports on average.
To the executive, the company’s business model causes it to stand out domestically and internationally. “We provide consulting services to our clients. We don’t simply sell the equipment, we endeavour to sell solutions. This is Kepler’s main differential in the market,” he says.
*Translated by Gabriel Pomerancblum
