Alexandre Rocha
São Paulo – Not only speculators make advantage of oscillating exchange rates. In Itatiba, a city with a population of 82,000 inhabitants some 80 kilometres away from São Paulo, the largest city in Brazil, granite slab factory Granibras has increased its export from 30,000 square meters of stone in 2002 to 55,000 in 2003. The main reason, according to the company directory, was the rising European euro against the United States dollar.
The main Brazilian competitors on the international markets are Italy and Spain. According to the Granibras administrative and export manager, Paulo Sérgio Gasparini, the rising European Euro has made these countries lose competitiveness, allowing the company from Itatiba to increase its participation on the foreign market, especially the United States market.
"Our sales have increased to the United States, which consume 95% of our export, a little goes to Israel and to Central America," stated Gasparini. The company also exports to Canada.
Established in 1979, according to Gasparini, Granibras started investing in foreign trade about five years ago. Today a large part of company production, 12,000 square meters per month, is exported. "There is little demand on the domestic market," stated the executive.
According to him, company granite prices vary from 30 to 170 dollars per square meter, depending on the quality of the stone. "Brazil can sell around 30% cheaper than Italian or Spanish granite," he declared. Slabs produced by Granibras are on average 2.80 metres long by 1.70 metre wide, with thickness varying from two to three centimetres.
Investment
The largest company investment in recent years, according to Gasparini, was in latest generation Italian machinery purchases for slab production, a total of US$ 1 million, according to the manager.
With the increase in export, this year the company intends to invest in machinery and to increase in factory grounds, aiming at a 30% production raise, then trying to enter new markets, such as Europe and the Arab countries. The expansion project should be completed in six months.
The Itatiba factory is currently installed in a 68,000 square meter piece of land, and has 3,000 square meters of built area. The plant employs just 30 employees. "It is completely automated," said Gasparini. According to him, another 20 employees work in company mining activities in Bahia and Espírito Santo. Granite is not extracted in Itatiba, only processed.
Apart from the increase in productive capacity, in 2004 the company intends to increase its participation in international sector trade fairs. In 2003 the company sent representatives to events in Las Vegas (USA) and Verona (Italy). This year the plan is also to be present in Orlando, Flórida (USA).
The sector has not yet been benefited
If Granibras benefited from the rising euro, the same cannot be said about the Brazilian marble and granite sector as a whole. The sector has been growing, especially in the last five years (check the link below), but the euro is not the reason, states the president of the Brazilian Association of Marble and Granite Industries (Abiemg), José Gilberto Sibin. "The reflex of the rising euro has not yet directly benefited Brazilian export," he believes.
According to Sibin, despite having the euro as their current currency, Italy and Spain trade granite internationally in dollars. "The world rock market is very competitive, especially after the industrial park in China was made adequate for competition," he declared, adding that the Asian country currently dominates around 35% of the international rock market.
"The rising euro may become a favourable point for us in future, specially due to the fact that the currency is still on a rising curve. I hope that Brazil sees this positive reflex within the next few months," finished off Sibin.
Contact
Granibras
www.granibras.com.br
