Brazilian Tile Maker Wants Bigger Chunk of Foreign Pie

Gyotoku, a company from the southeastern Brazilian state of São Paulo, specialized in products for civil construction, such as floor tiles and coatings for walls, aims to reach US$ 10 million in revenues with exports this year.

Last year, the company’s revenues with international sales were of US$ 8.5 million. One of the strategies to increase trade outside the country is to increase business with new markets, amongst them, the Arab countries.


“The Arab market is very interesting. The region has many countries with the potential to import. Currently, Gyotoku’s presence in the region is very small, but we are interested in increasing our participation,” stated the superintendent director at the company, Adriano Lima.


Gyotoku exports to more than 40 countries. But according to Lima, the only Arab country part of the list last year was the United Arab Emirates.


For this year, the director has perspectives of exporting also to Saudi Arabia, Iraq and Iran, which, although not an Arab country, is located in the Middle East.


The contacts between the company and Arab representatives were made at international trade fairs and through visits by importers to the company factory in São Paulo.


“We have never participated in a trade show in an Arab country, but it may be a possibility for this year,” said Lima.


Gyotoku, in partnership with the Brazilian Association of Ceramic Tile Manufacturers (Anfacer), will probably participate of the Big 5 Show, in Dubai, in the United Arab Emirates.


The fair gathers companies in the construction sector and will take place between the 16th and 20th of November.


According to Lima, amongst the company’s products that are most exported to the Arab countries are floor and wall tiles in porcelain and ceramic.


“The stronger and livelier colors have greater acceptance in the Arab market,” he said.


Greater Exports


Last year Gyotoku’s exports increased by 70%. The company exports in 2004 were approximately US$ 3.5 million greater than the US$ 5 million of 2003. The company’s revenues had an increase of 20%, according to Lima.


The monthly production capacity is of 1.2 million square meters, of which 20% are destined to the foreign market.


Based in the city of Suzano, in the countryside of the southeastern Brazilian state of São Paulo, and founded in 1964, Gyotoku has a factory of 72,000 square meters and counts on 700 employees.


They are currently the leaders in the state of São Paulo.


The Sector


According to information from the Anfacer, the ceramic tiling exports also had a significant increase last year.


From January to November US$ 313.1 million were exported, an increase of 25% in relation to the same period of the previous year.


The forecasts indicate the sector’s revenue should close at US$ 325 million, an increase of 30% over 2003.


Out of the 22 Arab countries in the League of Arab states, 11 imported ceramic tiling from Brazil between January and November of 2004. In total, the value of exports added up to US$ 6.22 million.


Brazil manufactures a total of 628 million square meters of tiling annually and, according to information from the Anfacer, in the last few years the production capacity in the sector increased on average 5.5% per year.


The companies in the segment, including mining, transportation, retailers and tile layers, generated 23,000 and 300,000 direct and indirect jobs respectively.


ANBA ”“ Brazil-Arab News Agency

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