English TI strengthens its presence in Brazil
Valor Econômico
TI Automotive, a supplier of fluids piping systems for the automotive industry, plans to invest R$ 40 million (US$ 22.9 million) until 2015 in new business, automation and equipment. The investments are part of the British company's strategy to increase its market share in the segment of pumps and fuel modules, where it now has a market share of 15%. "Our goal is to reach 30% of the market by the end of 2011", said the general manager of TI Automotive for Latin America, Marco Buck. One of the first actions to double the participation in this sector, he said, was done with the transfer of the production line from Caçapava (SP) to an area in São Jose dos Campos, where TI has an industrial unit since 1959 and it is considered the biggest plant of the group in the world. The new unit started its activities around four months ago. In Caçapava, TI is no longer producing fuel tanks and kept only the activities of its technology center, which is dedicated to the development and validation testing of products manufactured by the company.
The business of tanks was sold to IPA Indústria de Produtos Automotivos. IT also acts in the Brazilian market for brake pipes, with 85% share in this segment, according to the company. The brake pipes are produced at São José dos Campos unit, which also concentrates the group's business activities in Latin America and the multilayer tubing for fuel and air conditioning manufacturing lines. "São José´s factory is the only one in Latin America that produces metal tubes for brake and also the most complete in terms of portfolio among the units of the group in the world", he said.
Besides the countries of Latin America, the brake pipes are exported to Africa, Spain and Italy. Exports, according to Buck, represent between 20% and 25% of the domestic production. The executive also reveals that Germany will begin to receive the products of the Brazilian subsidiary in the coming months. "Brazil, along with China, India and Canada are the only producing poles in the world of metal tubing in polyvinyl fluoride (PVF) finishing and TI Automotive is the only manufacturer of this product in the Brazilian market, which is also supplied by imported, but in small quantity." In the United States and Europe, according to Buck, the pipes are already being made with another type of finishing, more adapted to the climate of those regions. Although there is a favorable demand for exports, the director of TI Automotive said that foreign sales have not been a good deal because of the exchange parity.
Despite the difficulties with the exchange, the activities of TI Automotive in Brazilian and Latin American markets are in clear growth. According to the company forecast, the businesses in Brazil should register a growth of 14% in the company revenues in 2010. TI Automotive, in 2009, earned R$ 190 million (US$ 96.5 million) in the country. In Latin America, which accounts for 7% of overall group revenue (US$ 2 billion in 2009), the company estimates a 17% growth in its revenues this year, about R$ 260 million (US$ 148.6 million). TI Automotive is present in 27 countries, with 126 factories and 14,000 employees. GM accounts for 30% of the revenues of TI in Brazil, followed by Volkswagen (15%), Renault-Nissan (13%), Fiat (11%) and Ford (7%), among others. The Brazilian subsidiary has a total of 1.3 thousand employees, distributed through five factories: Gravataí (RS), São José dos Pinhais (PA) and Juatuba (MG), besides the two units in Sao Jose dos Campos, where 850 employees work.