São Paulo – Randon aims to expand its business in the Arab world. The company, a maker of vehicles, road implements and auto parts, is seeking a new partner to produce its equipment in the region.
"It must be a renowned company with knowledge in the area of transport implements, or one that is interested in learning,” said Erino Tonon, operations vice-president at Randon.
The company has not defined a country in which to start its operations, but is betting on two possibilities. "Saudi Arabia, due to its population and market size, or Iraq, once stabilized, as it is a great market,” he said.
Among the Arab countries, Randon already has outsourced production of implements in Egypt and Algeria. The company has also already produced in Morocco, but activities in that country were closed.
According to Tonon, Latin America, Africa and the Middle East are the Randon targets, in which it is greatly interested in growing. “It is there that we have made efforts to sell. We want to increase our participation in the area,” he pointed out.
Investment in the new factory should be made by the partner chosen, with Randon participating with the technology and components for assembly of the equipment. According to Tonon, the third factory in the Arab world does not end company interest in expansion in the region, especially in Africa, where, apart from Egypt and Algeria, Randon also has a factory in Kenya.
"It is necessary to identify other countries with potential, like Nigeria, Angola and Sudan. Sudan should present good growth. The country has started receiving important investment in the areas of soy and cotton, so we can also think about the country.
The vice president at Randon also says that factories located outside Brazil supply only the markets in which they are installed, not exporting to neighbouring nations.
Exports, from Brazil, represent just 20% of company revenues. In 2011, Randon gross revenues totalled R$ 6.3 billion (US$ 3.7 billion).
*Translated by Mark Ament
