Brazil’s Engine Parts Leader Exports to US and 50 Other Countries

    Zen, the largest Brazilian producer of starter drives, parts used in car starter motors, has invested, this year, US$ 35 million in increasing the factory capacity. Of the factory’s total production, 78% is turned to the foreign market.

    In all, production will total 8.2 million in parts in 2004, against 6.2 million last year, which should represent an increase of 32.2%. Next year the company hopes to produce 9.5 million units.


    The factory is located in the city of Brusque, in Itajaí­ Valley, in the southern Brazilian state of Santa Catarina, where they occupy an area of 32,000 square meters and have 1,100 employees.


    Zen was established in 1960 by brothers Hylário and Nelson Zen, who started with a factory that made tools and radio parts in a 30 square-meter warehouse in the city of São Paulo.


    However, in 1973, the factory grew and was transferred to Santa Catarina, the birth land of one of the founders.


    Of all the company production, only 22% is turned to the domestic market. Zen is currently the largest Brazilian producer of starter engines, with 65 distributors throughout the country.


    The company started exporting in 1976. Nowadays, with over 100 distributors on then foreign market, the company exports to over 50 countries. The North American market alone represents 50% of total company revenues.


    Middle East


    Zen intends to double exports to the Middle East next year. This year a total of 135,000 parts have already been shipped to the region, corresponding to 1.65% of the total sales by Zen.


    This percentage includes the United Arab Emirates, Syria, Jordan and Lebanon, as well as Israel and Iran.


    The company also sells to Morocco, Algeria, Tunisia and Libya, but as the sales are through a distributor in Italy, they are not calculated separately. Zen exports to over 50 countries on five continents.


    Of the over 100 international Zen representatives, seven are found in the Arab countries, being three n the United Arab Emirates, two in Jordan, one in Lebanon, and one in Syria.


    “The Arab countries are very well known by the company, we have been exporting there for many years,” stated Walter Ikeda, the company commercial manager.


    According to Ikeda, the products most sold to the Arab countries are starter drives, as well as parts for the starter engine itself, like alternator and dynamo bearings and pinions.


    “The parts shipped depend very much on the vehicle fleet in each market. In the Arab countries, for example, there area many carmakers that are not known in Brazil. Our exports to the region go mainly to carmakers like Peugeot and Paikan,” he explained.


    Next year, the company intends to increase business with the region. “This year we have already made a large step in the direction of company internationalization,” stated Ikeda.


    Zen opened its first office on the foreign market. “We started in the United States, but the idea is to open new offices so that we can come closer to our foreign customers,” he added.


    According to Ikeda, the largest problem with the Middle East is the distance.


    “We travel to the region once a year and collect information regarding the market, competitors, parts and the fleet,” he explained.


    After collecting the information, the company establishes a market strategy to export to the region.


    “As it is difficult for a company installed in Brazil to do all of this, we have decided to work on internationalization,” explained the manager.


    ANBA ”“ Brazil-Arab News Agency

    Tags:

    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.

    Ads

    You May Also Like

    1/3 of Pregnant Women Get Abortion in Brazil

    The World Health Organization (WHO) estimates that 1.4 million abortions take place in Brazil ...

    Dollar

    Now Investment Grade, Brazil Gets Ready for a Foreign Capital Flood

    Brazil's "investment grade" classification granted to the country by rating agency Standard & Poor's ...

    Minas Gerais cattle being exported from Brazil

    For Brazil’s Minas State, Arabs Mean Big Business

    Bilateral trade between the Arab countries and the Brazilian state of Minas Gerais (known ...

    Brazil’s Micro Credit Program a Hit. Default: 1.2%.

    Within the scope of a new credit program for productive activities, in Brazil, established ...

    One of the ambulances sold by the Ambulances Mafia in Brazil

    Ambulances, Prostitutes, Kickbacks… Here Comes the Latest Brazilian Scandal

    The latest affair to rock the Brazilian republic, involving more than 100 congressmen charged ...

    A pothole in Brazil

    In Brazil They’re Sure They Hit Bottom. The Only Way Is Up Now

    In Brazil and Latin America the business climate experienced a slight improvement in the ...

    Israel and US Worried Brazil’s Arab Summit Will Harm Middle East Peace

    Brazilian President Luiz Inácio Lula da Silva welcomed South American and Arab leaders to ...

    Brazil Wants More Nations in the Club of Ten

    The free trade agreement between the countries of the Mercosur and the Andean Community, ...

    Antologia da Canção Brasileira by Freire and Bocato

    Brazil’s Songs of Innocence and Experience

    Sweet tooth, prepare for action. Without a lapse, Antologia da Canção Brasileira has a ...

    Lula: ‘Brazil and US Discuss Their Differences Without Confrontation’

    Your Excellency, George Bush, President of the United States of America, and Mrs. Laura ...