Brazilian Refrigeration Industry Warms Up to Foreign Market

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The Brazilian refrigeration, air conditioning, ventilation and heating industry wants to expand its exports. For this purpose, Abrava, the association that represents the sector, and the Brazilian Export and Investment Promotion Agency (Apex) are going to renew on Monday (31) a trade promotion agreement.

According to information supplied by the Apex, together both organizations are going to invest US$ 920,000 in the promotion of commercial actions and in the creation of their own brand.

The target, according to the Apex, is to make foreign sales reach US$ 1.8 million this year, with growth of 50% over 2005. Among the actions forecasted are the establishment of partnerships with other sectors, like the medical, hospital and dentistry sector, the expansion of participation in business fairs, the organization of trade missions and the promotion of business roundtables in Brazil and abroad.

According to the Apex, participation in six trade fairs is already scheduled, as is the organization of two missions to Latin America and the Middle East.

The target markets for the project are Costa Rica, Cuba, Guatemala, Panama, the Dominican Republic, Mexico, South Africa, Namibia, Angola and the United Arab Emirates.

According to the technical manager of the Abrava Exporta program, Leila Vasconcellos, activities in the Middle East include the presence of two sector companies in the Big5, the civil construction sector fair that is going to take place at the end of October in Dubai. The companies are Maxtemper, of solar heating, and Apema, in the cooling sector.

After the fair, Abrava also intends to organize a trade mission to the Emirates and Egypt and should include five companies.

"We organized a study about the Middle East and it shows that the market presents great potential for our sector, but it must be worked," said Vasconcellos. "Dubai is the largest free port in the world and sells not only to the Middle East, but also to the North of Africa, which is also a potential market for us," she added.

Both organizations had already signed an agreement in 2004, which involved the investment of US$ 1.8 million in trade promotion activities. According to the Apex, from 2004 to 2005, sector foreign sales rose 21%.

Still according to the Apex, the agreement involves 20 companies, most of them small and medium, from the southeastern Brazilian states of São Paulo and Minas Gerais, and the southern Rio Grande do Sul and Paraná. Estimates, however, are for another 14 companies to become members of the group in future.

According to information supplied by the Abrava, the sector had a turnover of US$ 3.7 billion last year, invested US$ 206 million and generates 150,000 jobs in industry, trade and in the area of services.

Anba – www.anba.com.br

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