Sperian wants to increase sales and export the Brazilian Production
Gazeta Mercantil - 04/15/2008
French multinational company Sperian Protection, manufacturer of personal protection equipment, wants to increase its presence in Brazil. The company currently has little less than 1% of participation in a market with sales close to R$ 1.5 billion (US$ 857.1 million), according to estimates based on data from the National Association of the Work Protection and Safety Material Industry (Animaseg), and the goal is to reach 5% of market share in the next two years. With the opening of the plant in Jundiaí (SP), on the 16th, Vice-President and General Manager in Brazil, Christian Steyer, intends to unleash the businesses of the company, which will start competing on a par with the rival companies that already produce locally, such as 3M. The domestic production will make the products of the company reach the market with prices up to 10% below the current prices. "But the main reason for the setting up of the plant was the availability of the products in Brazil and in Latin America, which will be faster", said the officer. Three lines of production of protective items will be the company priority: breathing masks, hearing protectors, and safety goggles. Together, the sales of these three lines amount to 70% of the company's sales. The chemical and petrochemical sectors are the main Industry's segments that demand this kind of equipment, but according to Steyer the demand has grown in almost all industrial sectors and has gained room mainly among the small- and average-sized companies that previously had no significance in the market. According to him, every year there is a growth of nearly 15% in the number of industries that start using personal protection equipment. Last year, Sperian grew 24% in Brazil. The goal is to repeat this rate this year in which it will start the local manufacturing. The production of the unit of Jundiaí will be 5 million masks and 15 million pairs of hearing protection equipment in the first six months. The unit will also produce safety goggles at this first moment. The other lines will be set up throughout the year. The production represents 40% of the capacity of the plant. "In fact, we have problems concerning physical space more than to productive" said Steyer. Because of this problem, the company will invest in a distribution center near the Jundiaí plant in the coming years.