Arconvert gets to the Country and wants 18% of market share
DCI
Focused on a potential growth of 10% to 12% a year in the Brazilian market and especially interested in the Mercosur, Arconvert Brasil opens its first plant today. The plant will produce up to 90 million square meters of self-adhesives a year.
The Jundiaí plant, built on a 35 thousand square meter piece of land, consumed R$ 50 million (US$ 29.1 million) and has earnings forecast of R$ 100 million (US$ 58,1 million) for 2010. The goal of the company is to reach 18% of the Brazilian market and export 30% of the production to the Mercosur countries, especially Argentina, where there are big producers, according to Sergio Tosolini, Managing Officer of Arconvert in Italy. In Europe, the company has 28% of the Italian market and exports 55% of its production.
Arconvert Brasil is a joint venture between the Italian group Fedrigoni, with 60% of interest, and Gafor, a Brazilian company with businesses and operations in logistics and distribution, agribusiness and real estate, with 40% of it.
The Gafor used to import the product from Italy and distributed it in Brazil. According to Roberto Restino, Managing Officer of the Unit, the delivery deadlines and foreign exchange rate have begun to adversely affect the competitiveness of the imported product. "With the setting up of a manufacturing plant in Brazil we will be more competitive and dynamic in order to meet the increasing demand", he says. The Brazilian unit will initially have five lines of products - coated paper, thermal paper, trans-thermal paper, polypropylene and vinyl films - that will be intended for labels and packaging labels of sectors of foods, pharmaceutics, chemicals, cosmetics, hygiene, beverages, among others.
According to data published by Arconvert, 40 billion square meters of labels and tags are consumed in the world every year, 40% of which, nearly 16 billion square meters, being self-adhesives. In Brazil, 25% of the market use self-adhesive paper, with an average consumption of 2 to 3 square meter per capita. In Europe, the market share gets to 40%.
Tosolini affirms the growth forecast for Brazil "is fantastic" but that the application of self-adhesives depends on the level of development of each industry. "The self-adhesive replaces the manual application of the adhesive, requires investment and integrates the industrialization", he emphasizes. In Brazil, the two main self-adhesive markets are the sectors of cosmetics/personal care and home cleaning.