Business opportunities in Brazil in the rubber and latex industry
Question
hello. I’d like to know more about business in Brazil. I manufacture and export chemicals that find application in the rubber and latex industry. Are there opportunities and how do I progress?
Answer
Hello Kelvyn
Tim here, a New Zealander with a consultancy based in Brazil helping foreign companies develop their business interests. [email protected]
I think you need to go through the process of establishing what the taxes and fees will add to your products costs to get them into Brazil, how this then compares to competition price and quality, what channels and business structure would be most efficient for you to succeed and whom may have interest in your products.
Judging by the chemical products you make and the large industry here you should find opportunity.
I have translated information from the Rubber Association website for you, see next post.
Best regards
Answer
If I’m not mistaken you will need help to talk and build relationships with the 18 large companies of the industry mentioned below for example….
Brazilian Association of Rubber Artifacts – ABIARB
STATE DISTRIBUTION
SP 65%
RS 10%
MG 9%
RJ 6%
OTHER 10%
Estimated # of companies
Brazil 1850
São Paulo 1200
As at Oct 2012 about 140 companies registered
60,000 direct jobs in Brazil, 28,000 in São Paulo, indirect employment of 100 thousand
Micro – up to 99 employees 92% = 1,700 companies
Small – 100 – 249 employees 5% = 95 companies
Medium – 250 – 499 employees 37% = 2 firms
Large – over 500 employees 1% = 18 companies
Domestic production insufficient to meet consumer market, which includes the manufacture of tires, activity is responsible for the absorption of 20 to 25% natural rubber and 27 to 30% of rubbers synthetic.
Annual finished production by weight is estimated at 126,000 tons.
Turnover (USD Biliion without Tax)
2001 1.35
2002 1.25
2003 1.37
2004 1.48
2005 1.85
2006 1.97
2007 2.18
2008 2.20
2009 2.34
2010 2.51
2011 2.64
Customers
Automakers 58% (distributed as follows: Automakers = 14%, Systems = 29%, Replacement = 15%)
Shoes 4%
Mining and Steel 8%
Consumer Electronics / Appliances 6%
Entertainment 3%
Health 4%
Other (Oil, Sanitation, Building and Industries in general) 17%
Regards