Randon, the Brazilian maker of highway implements, should end the year with growth of 11% in exports. The company hopes to have revenues of US$ 190 million on the foreign market in 2006, according to Astor Milton Schmitt, corporate director at the industry.
Last year, the company had record revenues of US$ 170.6 million with foreign sales. Randon makes trailers and semi-trailers, as well as special lorries, railcars, auto parts and automotive systems.
Exports to the Arab world should grow in the same proportion as company foreign sales as a whole, according to Schmitt. Last year, North America answered to one third of company exports, the countries of the Mercosur, Chile and Bolivia, for another third, and the Middle East and other nations in South America for the remaining third. Therefore, together with some South American countries, Africa and the Middle East purchased US$ 56 million in Randon products.
Randon sales growth estimates are based on the good performance of the world economy. "The world is at a moment of accelerated growth and emerging countries are growing more than developed countries. As our trailers go mainly to emerging countries, the tendency is for growth," stated Schmitt. The regions that are destinations, however, should continue answering to the same percentages in 2006.
The company from southern Brazil intends to open a new trailer and semi-trailer assembly line in the United Arab Emirates. According to Schmitt, the unit may be open in the Emirates or in another Arab country. Last year, Randon opened a commercial office in Dubai.
The company also has an agent with strong operation in the United Arab Emirates, according to Schmitt. In the Arab world, there are units for assembly of trailers in Algeria and Morocco. They are shipped in disassembled kits and are assembled in the countries themselves.
According to the corporate director at Randon, the distance is the main reason for the opening of new assembly lines. "Sales to the region include high logistics costs. Sooner or later we will have to establish an assembly line in Dubai or in another Arab country, as we did in Morocco, Algeria and Kenya. This will reduce costs," explained Schmitt.
The main Randon clients in the Arab world are in Algeria, Iraq and the United Arab Emirates. The company exports to most of the Arab countries.
Randon is currently undergoing great international expansion. In 2002, the company exported just US$ 50 million, a value that rose to US$ 75 million in 2003, US$ 118 million in 2004 and US$ 170.6 million last year.
The company started exporting 34 years ago. Company gross revenues in 2005 totaled US$ 2.84 billion, 20.4% greater than in the previous year. The Randon headquarters are in the city of Caxias do Sul, in the southernmost Brazilian state of Rio Grande do Sul. The company employs 6,800 people.
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