São Paulo – The high purchasing power of Middle East consumers has attracted the Brazilian padlock manufacturing company Pado to the region. The company is increasing its output in Brazil to serve new markets in coming months, and has decided that one such target is the Middle East. In November, two Pado representatives are travelling to Dubai, United Arab Emirates, to attend the Big Five, the Middle East’s leading construction fair. The show takes place from November 5th to 8th.
According to the chairman of the board managers and one of the Pado partners, Alfons Gardemann, the company has decided that the first product to be exported will be padlocks. “We will start with padlocks, which is our flagship, and then move on to products for doors, windows and handles,” said Gardemann. Aside from padlocks, Pado makes hinges and door locks, among other products.
“The Middle East is one of the places we can export to. Asia is unthinkable to us (because of the competition) and so is the United States, because the FTAA (Free Trade Area of the Americas) did not thrive. What is left is to export to Europe, Latin America and the Middle East,” says Gardemann. He claims the Chinese padlocks sold in Arab countries do not compete directly against Pado’s product because they are not as good.
In order to export without compromising domestic supply, Pado has invested R$ 50 million and will invest another R$ 25 million in boosting output. Currently the company makes 20 million units per year. Once expansion works are completed at the company’s plant in Cambé, Paraná, 30 million padlocks will be made each year.
Even though Pado has decided to invest in the Middle East, the company has not completed its studies on the region. It should count on backing from the Brazilian Export and Investment Promotion Agency (Apex-Brasil) to enter the market. Pado has decided, for instance, that it will not export via trading companies. Rather, sales will be made directly.
The exporting of padlocks to the Middle East will open a new chapter in the history of the company, which was established as a foundry in 1936 by the Italians Joaquim Paioletti and Francisco Ragosta. Years later, the two partners joined a German immigrant and established Pado. In addition to serving the domestic market, Pado exports to the Mercosur countries.
*Translated by Gabriel Pomerancblum
