Ericsson plans doubling production
Valor Econômico 09/14/10
Ericsson has chosen to go against the outsourcing trend - at least part of the usual production among manufacturers of equipment of the electric and electronics and telecommunications areas - and returned to the times of assembling just about everything it sells in the plant of São José dos Campos. The company is investing US$ 5 million to double its production. "We're putting from the components on the boards, following the whole process, to the total assembly. It isn't assembling, it is production. Our dream has come true", said the President of the company for Brazil and Latin America, Sergio Quiroga. The strategy fits the profile of the company worldwide, which began being implemented in April, when the Sweden headquarters split control of the company present in 127 countries as per geographic areas. Brazil has became the headquarters of the Latin American unit, and the plant, in operation since 1955, has became the "prime delivery (the production center) for Brazil and nine neighbor countries", explained Quiroga. The Executive is optimistic and he says that regardless of the boldness of the Asian countries in the industry, the company offers very low prices, "the entire competition is a challenge, and our goal is to gain market share here and all over the world".According to Quiroga, what will drive the market is the "explosive growth" in the industry here and abroad, from an accelerated demand for broadband services. He assesses that Brazil is living a favorable time with the telecom operators going through restructuring processes that increase the investment capacity, besides the opportunities that are arising. Such is the case of the expectations around the release of the 2.5 gigahertz frequency to host the fourth-generation of mobile telephony.
Yesterday, Quiroga flew to London, where he will take part, tomorrow, on a seminar on emerging countries, sponsored by "The Economist" magazine. Brazil will be one of the highlights at the event. The Brazilian Executive will speak on the perspectives for the telecommunications area. What he intends to show is that, from the boom of the broadband demand, the sector will increase the participation profile in the GDP here and abroad. Quiroga says that, when he took office, the instruction he received from the headquarters was to increase the participation of Latin American in the total share of Ericsson. Last year, the region was responsible for 10% of the nearly US$ 30 billion in earnings, and the goal is to get to 14% in five or six years. Brazil is responsible for 40% of the regional earnings.