Brazilian company Randon, a road equipment maker, has just established a joint venture with Egypt Power. Both groups have joined forces to sell the company’s semi-trailers in Egypt, in North Africa.
Randon should send the product in CKD format for assembly and distribution by Egypt Power. According to the corporate director at the Brazilian company, Erino Tonon, production grants the product greater competitiveness on the Egyptian market, as it reduces transportation costs and import fees.
The joint venture was signed in the presence of the Brazilian delegation that is in the Middle East, and arrived in Cairo on Tuesday night, April 13. The event included authorities like the minister of Development, Industry and Foreign Trade of Brazil, Miguel Jorge, who is heading the delegation, and the president at the Arab Brazilian Chamber of Commerce, Salim Schahin.
The group was met on a boat, on the Nile, for establishment of the partnership, signed by Tonon, on the Randon side, and Alaa Eldin Hussein, the president of Egypt Power. After the event, those present had lunch and took a boat trip.
Egypt Power is a company specialized in vehicle boosting. It imports MWM engines from Brazil and boosts them, for sale on the local market. With the new partnership, however, it should now also start assembling Randon semi-trailers.
According to Tonon, in the first year in operation, 500 units should be assembled, and, in the fifth year, this volume should reach 1,000 units. Investment in the business was made by Egypt Power: US$ 8 million. Randon participates with technology and with the supply of disassembled parts.
Randon has similar operations in Algeria, Morocco, Kenya and Cuba. According to the corporate director, the group does not yet export to Egypt. At the signing of the joint venture, Tonon pointed out the synergies between the companies, which collaborated for the establishment of the partnership.
“Alla Eldin Hussein was my contact, my partner, my friend and is now my brother,” said Tonon to those present. He pointed out the qualities of Egypt Power and said that it was difficult to speak about the company without enthusiasm.
Randon S.A. Implementos e Participações is headquartered in the city of Caxias do Sul, in Rio Grande do Sul, and controls eight companies in the area of vehicles, such as trailers, semi-trailers, auto parts, railway cars and special vehicles.
Last year, the company’s gross revenues totaled 3.7 billion Brazilian reais (US$ 2.1 billion), of which 3.3 billion reais (US$ 1.9 billion) came from the domestic market. There was 18% reduction over the performance in 2008. Of all exports, revenues totaled US$ 324 million. For 2010, according to the company, gross revenues of 4 billion reais (US$ 2.3 billion) are expected, with exports of US$ 190 million. The company should also invest 200 million reais (US$ 114 million).