Henkel studies producing cosmetics line in Brazil
Valor Econômico
The German multinational Henkel is studying starting the production of its line of cosmetics for hair treatment, which is currently imported, in Brazil. Known worldwide for its consumer products in the retail, such as Superbonder, Pritt, and Cascola glues, among others, in Brazil the company has its sales based on adhesives and packaging, which respond for nearly 95% of the earnings of the group in the country.
Julio Muñoz Kampff, President of the company for the Mercosur and person in charge of the operations in Brazil, said the company is analyzing producing in the country of their professional cosmetics line, Schwarzkopf, which is sold directly to beauty parlor chains. This segment is responsible for 22% of the global earnings of the company. In Brazil, this line of products is currently imported from the producing units of Henkel in Colombia and Germany, and it represents nearly 5% of the earnings in the country. Kampff said the decision of bringing the production of such line should be taken within the coming months. The Executive has not detailed how the investments may be made in the country, since the issue is still being analyzed.
Founded in 1876, in Germany, the company closed the first quarter this year with earnings of € 3.5 billion, growth of 7.8% compared to the same period of last year. In Latin America, the earnings stayed at € 16 million, an increase of 10.6% compared to the first quarter of last year. Brazil represents nearly 35% of the earnings in the region. In 2009, Henkel registered global earnings of € 13.5 billion, compared to the € 14.1 billion in the prior year. The fall of the earnings of the company is a result of the global financial crisis, which got to several sectors of the economy. Kampff pointed out, however, that the performance in Latin America was positive, compared to countries of Europe and Asia.
With earnings of R$ 840 million (US$ 426.4 million) in 2009 in Brazil, the company that is present in the country since 1955, should keep the investments in 2010 for the modernization of equipment and increase of the productive capacity in its four plants. For this year, there is the expectation of investments of nearly R$ 30 million (US$ 15.2 million), or about 4% of the earnings, in product innovation, good part in both research and development centers of the company in the country.
Last year, Henkel shut down two of the six plants it had in the country. The production of Jacareí was transferred to Jundiaí, and Boituva's to Itapevi, all in São Paulo. Besides the units of Itapevi and Jundiaí, producing adhesives and packaging, respectively, Henkel has producing units in Diadema, in the Metropolitan Region of São Paulo, that cater to the car market, and Manaus (AM), aimed at the sector of electronics. The four units are operating between 70% and 80% of their capacity. According to Kampff, the segment of adhesive in the country is very important and it has been growing at a two-digit rate year after year. The new challenge of the company is to work with products within the concept of sustainability, said the Executive.