slide1 l.
Skip this Video
Loading SlideShow in 5 Seconds..
Brazil 2008 Presentation by: Mauricio Vasconcelos U.S. Commercial Service/USDOC U.S. Embassy – Brazil February 2008 PowerPoint Presentation
Download Presentation
Brazil 2008 Presentation by: Mauricio Vasconcelos U.S. Commercial Service/USDOC U.S. Embassy – Brazil February 2008

Loading in 2 Seconds...

  share
play fullscreen
1 / 20
Download Presentation

Brazil 2008 Presentation by: Mauricio Vasconcelos U.S. Commercial Service/USDOC U.S. Embassy – Brazil February 2008 - PowerPoint PPT Presentation

daniel_millan
509 Views
Download Presentation

Brazil 2008 Presentation by: Mauricio Vasconcelos U.S. Commercial Service/USDOC U.S. Embassy – Brazil February 2008

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Brazil 2008 Presentation by: Mauricio Vasconcelos U.S. Commercial Service/USDOC U.S. Embassy – Brazil February 2008

  2. Brazil: Population: 187 million (Sep.2006) Size: 8,547,404 Km2 26 States and 1 Federal District

  3. 5

  4. Positive Points: * Inflation under control since 1994 (under 5%). Balanced budget. * Foreign Debt: US$200 billion but smaller than current reserves. First time ever, in January 2008. ( Zero debt). * Foreign Direct Investment at record level in January 2008. (US$35 billion in 2007) * Stock Exchange: All time high in Nov.2007 and Feb. 2008. * Import taxes are quite lower than used to be (but still high). * Higher competition through imports and privatization since 1990. * Several sectors privatized, or partially privatized, since 1990: Steel making, energy, mining, telecommunications. Starting PPPs * Exchange Rate: US$ 1 = R$3.75 in 2002 R$1.68 in Feb.26, 2008, same value as in May 1999.

  5. * Investment Grade from international credit rating agencies, expected in 2008. More favorable terms in international trade and loans, access to credit. • * Example: Automotive industry: 3 million passenger vehicles in manufactured in 2007 in Brazil, all time high, record exports and record sales in domestic market. • * World leader in ethanol technology and production. Sales of ethanol larger than gasoline in January 2008. Most new cars are flex-fuel ethanol/gasoline. (Pres. Bush visit in 2007). • * Most industries running at full capacity, especially food, consumer goods, raw materials, oil, ethanol. • * Large supplier of raw materials, high prices in international market. Strong international demand. • * President Lula: 53% approval rate in Feb. 2008, after five years in office, in the second year of his second term.

  6. Negative Points: * Infra-Structure: energy, ports, roads, airports. * Privatization and concessions program: very slow. * Need for huge investments in infra-structure, but no state funds for investments. * Legislation: Labour, Fiscal, * Criminality * Interest Rate: still very high at 11.25% basic rate, although in all-time low. * Import taxes still high (although they have been significantly reduced.)

  7. The Perfect Rep / Distributor does not exist, because: * Financing: Very high interest rates (although the Central Bank basic rate of 11.25% in February 2008 is a historic low). Possibility of the U.S. Eximbank. * Stocking pre-paid products: extremely expensive and risky * The cost of selling: visits, travel, tests, labor, expertise, after-sales, advertising. * Tests & warranty. Local maintenance. * Price: Import Tax calculated on price CIF. Plus two local taxes that are calculated on the price “CIF plus Import Tax.” * Competition: very developed local industry. * The Brazilian rep / distributor will need: Technical assistance, financing, sharing expenses, marketing support, * Try to buy and assemble peripherals (frames, accessories) in Brazil (if possible); to avoid import taxes. * Bonded warehouse. Just-In-Time delivery very important. * A new exporter must spend money, before he can earn money.

  8. Mining Equipment Manufacturers in Brazil: Large and diversified Brazilian industry. Many subsidiaries of leading international manufacturers have factories in Brazil. Some examples: Caterpillar 2003 2004 2006 Total Sales – US$ million 634 1,023 1,700 Brazilian Market 391 727 Approx. 25% Exports from Brazil 243 296 Approx. 75% • * Factory located in Piracicaba / SP - 4100 employees ( 2005) • * 25 different models in 2004 / 14th largest Brazilian exporter. • Brazil = 3.4% of CAT sales worldwide in 2004. Exports from Brazil to 120 countries. • CAT exports in 2006 from Brazil: US$1.14 bi, the 15th largest Brazilian exporter.

  9. Volvo Construction Equipment * Total sales in Brazil in 2003: US$ 138 mn. Total sales in 2004: US$247 mn * Exports from Brazil in 2003: US$ 95 million. Exports from Brazil in 2004: 179 mn (being US$56 mn to the U.S.) * Factory in Pederneiras / SP. Randon: Off-road trucks, components, truck beds, breaks * Total sales in 2004:US$800 mn, Exports from Brazil:US$118 mn * Market leader in Brazil for trucks, segment under 35 tons * Joint-ventures with U.S. Arvin-Meritor and German Jost. * Factory in Caxias do Sul / RS.

  10. CNH: Case + New Holland + FIAT-Allis + O&K, Kobelco * Mining, construction and agriculture machinery * More than 16,000 machines/year in Brazil. * 40% share of Brazilian market for agriculture and construction machinery * Total sales in Brazil: + US$1 bn; Exports + 25% (including to US) * Bank CNC Capital, has financed 30,000 clients. * Factories in Curitiba, Piracicaba and Contagem. * Also of the same FIAT Group: IVECO trucks, factory in MG.

  11. Cummins * Manufactured 42,000 engines in 2003. Exported 6,500. * In 2004: 49,000 engines. * Factory in Guarulhos / SP. Ingersoll Rand * Compressors, temperature control division Thermo King, refrigeration equipment Hussmann. * Factory in Londrina / PR: average of 60% Brazilian components. Exports equipment to Latin American countries and components Ingersoll Rand / USA.

  12. METSO (Finland) * Took over Svedala, Dynapac, Nordberg, Trellex and Faço. www.metsominerals.com.br / Factory in Sorocaba / SP. * Total sales in Brazil: approximately US$ 100 million in 2003, exports from Brazil = 35%, especially Latin America, USA and Canada. World total sales: Euro 5.2 billion/y. * Sold Euro 50 million to Sossego CVRD Project, being approximately 50% made in Brazil and 50% imported. * Supplier of crushers, screens, transportation systems and engineering projects. Has a foundry for 1,900 tons/year. P & H MinePro Services * Supplier of shovel loaders, draglines, excavators. Assembly line in Belo Horizonte. Total sales in Brazil in 2006 were US$60 million, being 12% of that amount exports from Brazil.

  13. Sandvik (Sweden) * Total sales 2003: US$ 190 million * 32% of total sales was mining and construction equipment (drilling tools and cruching equipment), 40% tools and 28% specialty steel. Palfinger (Austria) * Cranes for mining, oil and construction. Reach stackers. * US$ 19 million in 2003. Factory in Caxias do Sul / RS. Haver & Boecker (Germany) * Factory in Monte Mor / SP, since 1975. Exported two giant screens to Syncrude Sweet Blend / Canada for betuminous oil sands, 2003 / 2004.

  14. Scania-Vabis do Brasil: • Manufactured 18,500 units (buses and trucks, combined) during 2006, being 65% exported and 35% sold in Brazil. • Forecast for year 2007 (in May-07) is a total output of 23,000 units, being 72% for export and 28% for the Brazilian market. • Started manufacturing in Brazil in 1959.

  15. GE Transportation * Started manufacturing locomotives in Brazil in 2005. * Has manufactured 50 locomotives till Feb. 2008, only smaller locomotives, up to 3000 HP. * Plan to manufacture 30 locomotives in 2008, including big ones, up to 6000 HP.

  16. Others Leading Manufacturers in Brazil: Atlas Copco Asea Brown Boveri Alstom Boart Longyear Dorr-Oliver Flygt Goodyear Liebherr NSK, FAG, Timken and SKF bearings Orica (blasting systems) Schenk Process Saint-Gobain ceramics Siemens Voith Wehr Schenk Trucks: Mercedes Benz, Ford, Scania, Volvo, Iveco, Caterpillar SKF: manufactures automotive components, in Cajamar / SP. Imports and distributes bearings. Aircraft: Embraer

  17. Mining Trade Show: Exposibram: Sep., 2009 (Held every two years, in Belo Horizonte). Sponsor and organizer: IBRAM / The Brazilian Mining Institute: www.ibram.org.br Websites: http://brasil.infomine.com/news/partners/brasilmineral/welcome.asp www.signuseditora.com.br ( Magazine “Brazil Mineral”) www.minerios.com.br/minerios (Magazine “Minerios”) www.inthemine.com.br (New magazine, started in 2006) www.geologo.com.br (professional geologists association) www.abimaq.org.br (ABIMAQ - Brazilian Association of Machinery Manufacturers, with online database of manufacturers) www.abmbrasil.com.br (ABM - Brazilian Metallurgy Association)

  18. Obrigado! Thank you !! Mauricio Vasconcelos U.S. Commercial Service Belo Horizonte - Brazil mauricio.vasconcelos@mail.doc.gov Tel.: (55 – 31) 3213.1573 U.S. Export Assistance Centers of the USDOC. In Charleston - WV: Leslie.Drake@mail.doc.gov 1116 Smith Street - Tel. 304 – 347.5123