Cell phone production gets stronger in the country
Valor Econômico
The expectation that the cellular phone market hits a record in sales this year has caused changes in the plans of the main manufacturers of the sector. The new wave of investments involves both the operations of major telephone brands and the multinational companies specialized in made to order manufacture, which make products under the brand name of third parties.
The Korean Samsung, which intends to fight for the cell phone leadership in the country, will start producing mobile phones in Manaus. The facilities will be put up within the coming months and will have the capacity to produce 2 million units a year. Today, the entire production of Samsung cell phones in the country is concentrated in São Paulo. The manufacturer has already produced their phones at the Zona Franca (duty-free zone), but due to the low volume, shut down the machines in 2004. The resumption of the operations in Manaus will have no impact on the plant de Campinas (SP), says Benjamin Sicsú, Vice President of the company for Latin America.
The Finnish Elcoteq also has plans for local production. The company, specialized in outsourced production for several companies, landed in the country in 2004, with the production of equipment for telecommunications infrastructure. Late last year, Elcoteq approved a plan to start manufacturing smart phones in Manaus. The project of the company, as Valor found out, foresees manufacturing up to 1.1 million cell phones in the first 12 months of activity, with a financial investment of R$ 53.3 million (US$ 29.6 million).
Who also has plans to strengthen the cell phone operations is the Taiwanese Foxconn. The company is consolidating the production of plastic parts that are used in the assembly of cell phones. The operations, currently divided in the two plants of the company, in Manaus, will be concentrated in one single unit. The schedule of Foxconn foresees the production of 15.9 million units in the first year of operation. During this period, the financial investment (working capital) involved in the transaction amounts to R$ 23 million (US$ 12.8 million).
According to analyst Eduardo Tude, President of Teleco, a consulting firm specialized in telecommunications, this activity is the result of the reheating of the sales projected for the sector. Last year, the economic crisis slowed the businesses down. The Brazilian consumer bought 45.48 million new cell phones in 2009, a volume 5% below 2008's, according to data of the Gartner survey firm. "The market is excited because it is absolutely sure it will exceed last year's results", says Tude. A great part of the local production should be intended for exports. In 2009, the plants installed in Brazil sold 15.8 million cellular phones to other countries.