WEG, a Brazilian multinational that is the largest producer of electric engines in Latin America, intends to expand exports to Egypt, especially regarding products for the cement industry.
"Up to last year, our sales to the country were relatively low, not exceeding US$ 50,000 a year. In 2005, however, we have presented a qualitative leap and sales reached US$ 500,000," stated Antonio Prezoto Neto, the company representative in Cairo.
WEG has had a partnership with company Lotas Comércio Exterior, a trading company that operates in Brazil and Egypt, for seven years. The trading company distributes the company products in the Arab country. However, due to the increase in shipments, the company has decided to intensify its brand promotion efforts.
"We have come to Cairo to show our products better and to promote their quality," stated Prezoto. "Our target for next year is to make the sales reach US$ 1 million," he added. Last week, WEG and Lotas set up a showroom in the Egyptian capital.
In 2005 the industry exported the equivalent to US$ 467.1 million. According to Prezoto, the company target is to expand foreign sales to new markets by between 30% and 40% a year.
"This is the target for growth in countries we are starting to work in, but as we know the Egyptian potential, we want to present growth above average, explained the company representative.
One of the Egyptian companies that have already purchased products from WEG is Sinai White Cement. The company purchased two low-tension and six high-tension engines.
"This was a special project for a customer, where he may replace an engine made by a competitor with a WEG engine, without having to modify his plant," explained Prezoto.
Egyptian cement industries are currently the main objective of WEG as they are currently being renewed. "We know that they are changing their existing engines and installing new lines," he added.
This is not, however, the only sector where WEG engines may be used. Apart from the cement industry, the engines may also be employed in the area of water and sanitation, in the petrochemical industry or in the production of fans. All maintenance is supplied by Rebelco, one of the largest Egyptian companies in engineering in the area.
From Santa Catarina to the World
WEG is an open capital company that was established in 1961 in the city of Jaraguá do Sul, in the southern Brazilian state of Santa Catarina. The company currently has three industrial parks in three Brazilian states, as well as in Argentina, Mexico, Portugal and China. The company shares are being negotiated on the São Paulo Stock Exchange (Bovespa).
Apart from electric engines, the company also produces generators, transformers, products for industrial automation and electric and electronic components.
The company currently has over 14,000 employees. Last year the company had revenues of almost 3 billion reais (around US$ 1.3 billion), an increase of 14% in comparison to 2004. Net profits totaled 374.8 million reais (US$ 165 million).
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