{"id":295901,"date":"2021-07-13T16:44:53","date_gmt":"2021-07-13T19:44:53","guid":{"rendered":"https:\/\/anba.com.br\/?p=295901"},"modified":"2021-07-14T13:31:04","modified_gmt":"2021-07-14T16:31:04","slug":"nitro-group-to-turn-increased-output-towards-arab-market","status":"publish","type":"post","link":"https:\/\/anba.com.br\/en\/nitro-group-to-turn-increased-output-towards-arab-market\/","title":{"rendered":"Nitro group to turn increased output towards Arab market"},"content":{"rendered":"

S\u00e3o Paulo \u2013 The Nitro group plans on increasing by at least 10% the capacity of its Brazil-based Specialty Chemicals plant by 2022, and this increased production will be mainly used to serve the markets of the Middle East and Africa (MEA), where the Arab countries are. In an interview with ANBA, Specialty Chemicals director Anderson Oba and International Business manager Pedro Dorea said Nitro\u2019s higher expectations for growth are in the region.<\/p>\n

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Nitro invests in the development of products<\/figcaption><\/figure>\n

The group has business on multiple fronts, including Specialty Chemicals. In this field, the top selling product in nitrocellulose, a naturally occurring resin obtained from pulp. Its uses range from printing ink to flexible packaging \u2013 used for packing foodstuffs, for example \u2013 to the cosmetic, varnish and pharmaceutical markets, and others. Other products like chemical solutions are also sold.<\/p>\n

The Brazilian company is large. Last year, the group fetched BRL 1.1 billion (USD 209 million). The Special Chemical department secured BRL 713.5 million (USD 135.7 million). The department serves over 70 countries, which makes the foreign market take in two thirds of the production. The domestic market accounts for one third of business, and exports are divided into similar shares between Latin America, United States, Canada, and Mexico; Europe; and MEA.<\/p>\n

The plans for growth in MEA are based on a series of reasons, including the good results that Nitro has obtained in the region over the last years, particularly in the last year. Factors for the great results in 2020 include services provided despite an adverse landscape in international logistics, the higher demand for food packages that the pandemic has caused, the companies\u2019 need to diversity their suppliers, and the tailored services provided.<\/p>\n

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Dorea believes in the potential of the Arab market<\/figcaption><\/figure>\n

Dorea mentioned as Nitro\u2019s top Arab markets Lebanon, Saudi Arabia, and North Africa, where Egypt stands out. According to the manager, in Lebanon the company has a partner that know the local market very well. As for Egypt, it\u2019s regarded a having a large economic potential. \u201cSaudi Arabia has an innovation- and customization-oriented approach,\u201d Pedro Dorea says.<\/p>\n

Customization is one of the niches that Nitro has invested a great deal in. The company tailors solutions according to the needs of the client. \u201cIf the client needs a certain formula that features some drying, some bright or another specificity, we make it through our technical development department. It combines solvents, plasticizers and resins, and we sell it preformulated,\u201d Oba explains.<\/p>\n

This strategy made Nitro proceed with the creation of a large range of new products for the market. According to Oba, until 2015 most of the revenue of the Specialty Chemicals department \u2013 95% – came from two products only. Late last year, this percentage fell to 70%. Diversification and variety have gained momentum. Dorea sees this innovation as a great chance to advance in the Arab market. \u201cThey want more specialized products so that they can stand out not because of the price but the quality,\u201d the manager says on the Saudis.<\/p>\n

Growth through adversity<\/strong><\/p>\n

During the pandemic, a phenomenon has made the demand for Nitro\u2019s product grow not only among the Arabs but across all markets. \u201cPeople spend more time at home, consuming more products from the supermarkets, storing more food, so our market has grown tremendously,\u201d Oba says. As the food consumption increase at home and decrease in restaurants, the trend was a higher need for individual food packages, a chain for which Nitro supplies raw materials.<\/p>\n

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Nitro group fetched USD 211 billion in 2020<\/figcaption><\/figure>\n

COVID-19 has also led to a disruption in supply chains, making Asian players unable to serve their clients, particularly in the beginning of the pandemic, as it started in the region. In this window of opportunity, Nitro got new clients in markets such as North America and the Middle East. \u201cWe ate up a large share of the market and managed to prove ourselves reliable for these markets that weren\u2019t our traditional market,\u201d Oba says.<\/p>\n

The director believes that factories have also seen the importance of diversifying their suppliers. \u201cThe main point that was tested by the pandemic is how reliable you are as a supplier,\u201d Oba says. He notes that markets that used to look just at prices have changed their mindset. These and other factors led Nitro to post record-high exports in the middle of 2020.<\/p>\n

For the Middle East and North Africa, Nitro exports primarily from Brazil, but it also ships from the U.S. and Uruguay, where it has plants. Director Oba says that the Specialty Chemicals department plans to grow by 10 to 20% in the region in the next three years. The increase in the Brazil-based plant\u2019s capacity in 2020, whose increment is expected to go to the Middle East, is expected for the month of July. Last year, exports to the region grew by 50% from 2019.<\/p>\n

In addition to the production plants of Specialty Chemicals in Brazil, U.S. and Uruguay, the department has a commercial office in Austria and distribution centers in Brazil, U.S. and Europe, as well as high stocks in several regions across the world. Besides Specialty Chemicals, the other two business lines of the Nitro group are Agribusiness, where foliar and soil fertilizers are produced, and Industrial Chemicals, which focus on sulfuric acid and sulphates.<\/p>\n

Investment in research<\/strong><\/p>\n

Dorea says that the quick expansion reached by Nitro over the last years \u2013 with the opening of factories, investments in technology, research and development, and the launch of a large number of products \u2013 is groundbreaking in the chemical segment, where these processes are usually slower. Last year only, the company invested BRL 100 million (USD 19 million) in the modernization of the nitrocellulose plant and research and development. One hundred fifty hours were used for training.<\/p>\n

The manager says that the company has never been so close to its clients and partners and inside their business as last year, despite the pandemic and the reduction in travel. Indeed, Dorea says, the custom satisfaction rating was also a record. Nitro is a member of the Arab Brazilian Chamber of Commerce<\/strong>, and the manager believes that last year’s customer satisfaction results year also stemmed from partnerships like the one the company has with the institution.<\/p>\n

Contact Info:<\/strong><\/p>\n

Nitro
\nPhone number: +55 (11) 2246 3380
\nWebsite<\/a>\u00a0\u2013\u00a0Linkedin<\/a><\/p>\n

Translated by Guilherme Miranda<\/strong><\/p>\n

Nitro\/Supplied<\/div>\n
Nitro\/Supplied<\/div>\n
Nitro\/Supplied<\/div>\n
Nitro\/Supplied<\/div>\n","protected":false},"excerpt":{"rendered":"

The Brazilian company will increase its department of Specialty Chemicals by 10%, and the additional will serve primarily to meet the demand from the Arab countries. Nitrocellulose is one of the company\u2019s main products.<\/p>\n","protected":false},"author":1455,"featured_media":295931,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[114],"tags":[3457,22080,2988,3254,32463,22082,22078,22079,32464,10891,2985,22081,22077],"class_list":{"0":"post-295901","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-chemical-products","9":"tag-chemical-solutions","10":"tag-chemicals","11":"tag-fertilizers","12":"tag-nitro-en-2","13":"tag-nitro-en","14":"tag-nitro-chemical","15":"tag-nitrocellulose","16":"tag-nitrocelulose-en","17":"tag-quimicos-2-ar","18":"tag-quimicos","19":"tag-sulfate","20":"tag-sulfuric-acid"},"wps_subtitle":"The Brazilian company will increase its department of Specialty Chemicals by 10%, and the additional will serve primarily to meet the demand from the Arab countries. Nitrocellulose is one of the company\u2019s main products.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/295901","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/1455"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=295901"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/295901\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media\/295931"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=295901"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=295901"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=295901"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}