Geovana Pagel
São Paulo – Ten medium and small companies that produce items made out of stainless steel, eight from the southern state of Rio Grande do Sul and two from the southeastern state of São Paulo, have come together with the objective of prospecting new markets and increasing foreign trade. The group is in the Sebraexport Multissetorial (multisector export) project, coordinated by the Rio Grande do Sul Support Service to the Small Business (Sebrae/RS). It was organized in January 2003, after Acesita, the largest stainless steel producer in Latin America, got in contact with Sebrae.
Up to now, diagnostic steps have been taken, a group brand has been created (Brazilian Stainless Steel Housewares), and an individual strategic export and training plan has been created.
The group, which is also called the Stainless Steel Group, also counts on the support of the Brazilian Export Promotion Agency (Apex) and the Brazilian Cutlery, Eating Utensil, Household and Hospital Appliance, and Similar Equipment Association (Abitac). The companies involved produce cutlery, trays, tableware, pans, and also iron and plastic items.
In September last year, ten industries participated in the first effective prospecting action in Mexico. Despite little international presence, the companies managed to close a US$ 120,000 contract with the Mexicans, and expect sales of US$ 3.24 million in a year.
In December, seven companies were included in the Apex mission to Dubai, where various contacts were made creating potential business of up to US$ 700,000 throughout 2004. According to the coordinator of Sebraexport Multissetorial project, Cíntia Pitrez Machado, the three group representatives who travelled to the Emirates were surprised with the potential in the region.
"The mission served to demystify the idea that the cultural difference between both counties could affect business. It was a market we would probably not think about operating on," she explained. "Our target for 2004 is to find a local representative who can proceed with the work that started in December," she guaranteed.
In February this year, seven factories of the stainless steel subgroup participated in a mission to prospect markets in Central America and the Caribbean. "The purpose of the trip was to collect market information, analyse cost prices, and retail market prices, necessary product modification, logistics, and taxes," pointed out the coordinator.
"The result was so positive that in the first week after return to Brazil, we received an order for a 40-item container. It was a consolidated sale that benefited four companies," she explained.
Representatives of companies in the group chose Central America. "Rio Grande do Sul currently exports US$ 2,529,913.00 in these products to countries in the region and we believe there is great potential for products made by companies participating in Sebraexport," says Cíntia.
The main commercial partners of the seven companies are the countries in the Mercosur, the Common Market of the South, a customs union between Brazil, Argentina, Uruguay, and Paraguay.
According to the coordinator, with the crisis in Argentina, which was reflected in the region, some companies in the group almost stopped exporting. With this, Cíntia says that the target is now to diversify buyers, thus avoiding that difficulties in a specific country affect industry performance. For this year new activities are also forecasted in the Mercosur, the United States, and Africa.
The group
The companies that make up Brazilian Stainless Steel Housewares are located in the Rio Grande do Sul mountain region, in the cities of Caxias do Sul, Gramado, Garibaldi and in the southeastern city of São Paulo. This is the first project that the Sebrae/RS puts in operation mixing companies from the southern state and from São Paulo as most of the companies operating in the sector are in the Rio Grande do Sul.
Together, the companies employ over 1,000 people and have annual revenues of around US$ 37.5 million. Total export reached US$ 3.2 million last year, mainly to Central and South America.
With formation of the group, it is estimated that foreign trade may reach US$ 6.45 million up to the end of 2005.
Contact
Telephone: (+5551) 3216.5000
E-mail: sebraexport@sebrae-rs.com.br
