The International Business Roundtable, Abrava Exporta, was the perfect setting for Latin companies to learn about the products and technologies of Brazilian SMEs.
by: AC/R LATINOAMÉRICA
Abrava Exports
During the fifteenth version of Febrava, the International Business Roundtable, Abrava Exporta, was held, an event whose main objective is to publicize the capabilities of small and medium-sized Brazilian companies in the refrigeration, ventilation, air conditioning and solar heating sector, to international companies interested in their technology and products.
Abrava Exporta, the program created in 2004 by Abrava (Brazilian Association of Heating, Air Conditioning and Ventilation) in partnership with APEX Brazil (Export and Investment Promotion Agency of the Ministry of Development, Industry and Foreign Trade); which is in the second phase, provided Brazilian HVAC companies with access to eight international fairs and a turnover of 1.2 million dollars through exports.
Supply and demand
The main idea of the wheel is to put in the hands of international companies all the offer of Brazilian companies, their products and technology, which has been previously selected by Abrava through a market study and selection of company profiles that have what buyers need.
In this study, the markets in South and Central America, the Caribbean, Mexico, Africa and the Middle East are analyzed, as these countries have been prospected as future users and buyers of Brazilian products.
After this study, medium and small companies that have the technology and products that are demanded are selected so that they participate in the wheel and can establish commercial relations with other nations. However, some of the exhibitors and visitors have stated that one of the biggest impediments to carrying out these negotiations are the high taxes and the financial and port problems that arise when exporting and importing.
Additionally, Abrava Exporta, at the head of the association, conducts training on export, international trade and its perspectives, and the management of strategic information to address international markets. It is for this reason that many national manufacturers consider that the wheel has helped them to open the doors in other countries and to know more about the Latin American markets, as proposed by Dilson Carlos Carreira, director of Power Matic, manufacturer of various types of ducts, in addition to being the distributors of Duro Dyne in Brazil; and Amauricio Gomes, director of Tuma Industrial, a company that produces industrial air conditioning equipment that is part of the Tuma do Brasil group.
Imports from Brazil
Many of the representatives of international companies observed innovations and technological advances in the products presented by Brazilian companies, however, as mentioned above, for some buyers importing Brazilian products is very expensive due to the high taxes they must pay in their countries. The General Manager of Viaterm Ltda., from Chile, Hugo Navarro, explains that although his company, dedicated to the import of thermal products for air conditioning; wish to establish a relationship with Brazilian companies and acquire their products, high costs, import taxes and the fact that Chile does not belong to Mercosur can stop these negotiations.
There are other Latin countries where import taxes are conditioned by other factors, such as the environmental impact that some products may have, that is why in the air conditioning and appliances sectors in Costa Rica, importers can submit an explanation to the authorities where they confirm that such products are energy savers, in order to ensure that these items do not pay taxes, explains Oscar Hochgelernter de Lores S.A.
Another version that should be highlighted is that of Luis Hernández, from Myer; importing company of refrigeration supplies for ships, electrical materials, machinery and inputs for the paper and dairy industries, temperature controls, pressure and measuring instruments for companies in Panama and nearby places; who assures that being Panama an open country and having as currency the dollar can be imported from anywhere in the world, although he considers that Brazilian exports to this country can be expensive due to the little fluidity of ships from Brazil, which makes factory prices a little more expensive due to port management.
Trade in Latin America
During the two days of the business roundtable, the plaintiffs were able to explain their needs in refrigeration, air conditioning, ventilation and heating to the bidders, who in turn presented their products, advances and innovations in these fields, managing to establish some commercial relations in order to expand the export field and become part of the markets in the other Latin American countries.
For many exhibitors this is a good opportunity to make themselves known and to start negotiations with different countries where their products are not known, but perhaps required. For Lucas Pohlmann, Joape, evaporative air conditioners that work with wind and water and that do not use electrical energy; particularly the participation in the wheel is a good experience, because they are looking for distributors of their products in other countries and this event allows them to get to know the companies better. "We are sure that by the fair we will have many businesses in the near future." He also said that this is a good time to enter the Latin market, because "the countries that are growing have a very great potential because our economy is strengthening and companies and people are consolidating and buying more."
For the director of Tuma Industrial the impression that Latin America has about Brazil in terms of quality and seriousness is not the best due to some drawbacks that were previously presented, however Gomes thinks that the main challenge is to export and fight against this perception, because at this moment Brazil is configuring itself as a good ally of the other countries in terms of business.
For his part, Gilberto Rossato de Globus; company that works with air conditioning, refrigeration, heating and air conditioning control systems in the automotive market, in addition to commercial air conditioning; he comments that in Latin America they have moving markets, although they want to strengthen their actions in the industrial area through the contacts made in the wheel. He also explains that Globus wants to expand and reach the United States, in addition to continuing relations in Europe, Africa, Turkey, China, Malaysia, Thailand and the United Arab Emirates.
Marcelo Braga of Thermokey; manufacturer of heat exchangers and compressors; comments that the company has already entered some Latin markets, as they have commercial relations with Chile, Peru and Colombia, which is why he considers commercial exchange with the rest of the South and Central American countries fundamental. In the same way, he thinks that the lack of free trade in America and the little support of governments does not help imports and exports, since the investment by companies to export is a bit high.
For Dalvir Alvise, polar's technical director, technical solutions; manufacturer of plastic products for air conditioning installations in Split systems, innovative in Latin America and the country; Latin America is in the process of growth, and according to him one of the countries that is going through a good time to make agreements is Chile, which like Argentina and Uruguay, is growing. In the near future, Polar hopes to export its products to South American countries and Africa.
For his part, the representative of Transsen, a company that works with everything related to solar energy, Newton Koeke, comments that they already export to Chile, Peru, Bolivia, Argentina, Angola, Mozambique and South Africa, and are beginning to open markets in Central America and Europe. However, he states that the devaluation of the currency in other countries hinders the competitiveness of companies to export in those countries where capital is a little depreciated.
Likewise, Dilson Carlos affirms that "the markets in Latin America have a very interesting potential and there are still countries and markets with some deficiencies in terms of technology and certain types of products", which can expand export horizons, because during the round Power Matic exchanged data with five companies from Chile, Peru, Panama and Colombia, countries where there are many interesting projects that require high-tech products, however explains that at the time of exporting and conducting business the process is a bit delayed by documentation.
Innovation and technology
For many of the companies that participated as exhibitors or as visitors, technology and innovation are the main characteristics that customers seek when carrying out a commercial exchange, that is why Brazilian manufacturers are increasingly striving to create better products that are friendly to the environment, efficient and effective.
Likewise, some manufacturers consider that some perceptions have evolved over time such as what happens with solar energy as Koeke comments: "when I was in the wheel of 2005 the awareness for strict solar energy was very different, now it is very good, it is still something new, but there are already countries that are very developed in this"
For his part, Hernández affirms that although today all countries hold business rounds to open their markets, he likes to visit them because of the novelties that can be found to implement them in his country.
As for the participation in Abrava Exporta, Gomes says that the wheel allows visitors to know the potential of the Brazilian market, its technology and knowledge, something that is very positive for manufacturing companies.
For the next version, the organizers expect the support of the government for commercial promotion actions and the participation of a good number of visitors and exhibitors. It should be noted that this year, Abrava Exporta had the participation of 23 Brazilian companies and 13 purchasing companies from Argentina, Bolivia, Chile, Peru, Guatemala, Panama and Uruguay.
