A Lebanese’s Success Story in Brazil

Cristina Malhas, a garment industry established by Lebanese immigrant Michel Melhem Sabbagh, in 1970, plans to double export revenues up to 2006.

The producer from the southern Brazilian state of Santa Catarina, who already sells to Jordan, the United Arab Emirates, Japan, the Canary Islands and countries in the Mercosur (the customs union between Brazil, Argentina, Paraguay and Uruguay) intends to increase foreign trade participation from 15% to 30% of sales of the company’s monthly production of 500,000 products.


“In the last four years the company has grown between 10% and 15% a year. Our target is to continue growing at least at this rate and to double exports up to next year,” stated the industry’s trade director, Sandra Sabbagh.


Up to the end of 2005, the garment manufacturer should end investment of US$ 2 million in new machinery and technologies that began last year.


Apart from their own brand, Cristina Malhas also produces items for world famous brands like Adidas, Hello Kitty and Decathlon. “Around 60% of our production is for our own brand and 40% is for third party customers,” explained Sandra.


According to her, sales to the Arab countries began two years ago, when the company found a local representative, established in Jordan. “He also has an office in Dubai (in the United Arab Emirates) that represents the company throughout the Middle East,” she explained.


In 2004, the Arab importer came to Brazil to visit the factory. “Up to then, all the contacts had been made by telephone. The visit made it possible for him to know our infrastructure, quality and productive capacity,” he said.


Also, last year, the company participated in two sector fairs in Dubai, with their own stand. “This year we are going to participate in fairs in the region. We are betting more on the direct prospecting work that is being executed by our representative,” stated Sandra.


Success Story


On moving to Brazil, in 1950, young immigrant Michel Sabbagh brought in his baggage many dreams and the desire to prosper. For some years he lived in the countryside of São Paulo, where he established a fabric shop.


In 1959, he moved to Blumenau, in the southern state of Santa Catarina. Initially he worked in the sale of fabric and dry goods until he finally decided to establish his own textile factory. The choice of the name, Cristina Malhas, was in homage to his second daughter, who was born at the time.


So as not to forget his roots, Sabbagh made the company symbol the cedars from Lebanon, representing his origin, values and customs. “The symbol was put on the first product made by the factory,” he said.


The businessman, currently 76 years old, explained that at the beginning, daily production, 20 woollen jerseys, were made by just six seamstresses.


“We currently make 25,000 items a day, and have around 600 direct employees and 300 outsourced workers, at two production units covering an area of 30,000 square meters of built area,” stated Sabbagh, proudly. He is currently naturalized Brazilian, as is his wife, Laure Sabbagh, also born in Lebanon.


On discussing the success and growth of his factory, Sabbagh has a prepared answer: “Work. A lot of work. I worked around 16 hours a day. I only went on holiday for the first time (to Lebanon, of course) after 30 years of hard work,” he stated.


He is currently the company president and goes to the factory every day. He counts on the help of his five offspring, two sons and three daughters, who work at the company.


“They have been taking care of the factory for a long time. But I still like coming here to keep an eye on things,” he stated.


Cristina Malhas
www.cristina.com.br


ANBA – Brazil-Arab News Agency
www.anba.com.br

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