10/09/2008 14h01
Adjusts in Real strengthens producers, says Rhodia
Valor Econômico - 10/09/2008
Yesterday, Rhodia's president in Latin America, Marcos de Marchi, said that in the mid-run the depreciation of the Real will help boost exportations in the industrial sector. "The depreciation of the Real came, not the way the industrial sector expected, but it will make those who produce in Brazil more competitive ", affirmed De Marchi, who is responsible for the activities of the French company of chemical specialties in the region. Rhodia, which has a large industrial park in Brazil, will be positively affected, with smaller fixed costs in US dollars. "For those who add value in Brazil, the cost will never be bigger than the sale price." De Marchi also pointed out the fact that Brazil has a strong domestic market. In the last few days, amidst the financial market turbulence, the executive affirmed that he was with two big clients of different segments to measure the business temperature and evaluated that the result was satisfactory. "In both clients, we had good backlogs", he affirmed, commenting that there have been "adequate" adjustments in the prices. Rhodia's president admits that the biggest risk is still the credit offer on the part of the financial sector that may paralyze the activities of the industrial companies. But he expects some tranquility in the financial conditions in the next weeks. "We have not suspended any investment until now, without having some notion of what is going to happen." Rhodia should conclude its projects for the 2009 budget in November.
