Mabe to invest another US$ 75.6 million in the Country to take advantage of resumption
DCI
With an eye on the good growth prospects for Brazil in 2010, the home appliances company Mabe plans on investing R$ 130 million (US$ 75.6 million) over the next 12 months - R$ 60 million (US$ 34.9 million) of which in products and R$ 70 million (US$ 40.7 million) in the enlargement and improvement of its plants. For this year, the Mexican company expects to grow 20% compared to 2008, helped by the reduction of the Excise Tax (IPI) for white-line products. In six years in Brazil, the company is already the third biggest one of the Country, with 25% of the market. Annually, the 5 plants distributed in Campinas, Hortolândia and Itu produce 4.6 million units. In July this year, Mabe acquired the control of BSH Continental Eletrodomésticos for R$ 70 million (US$ 40.7 million), which allowed the consolidation of Mabe as a leader in Latin America.
The President of Mabe Mercosul, Patrício Mendizábal, said he intends to request the headquarters, in Mexico, investments of nearly US$ 100 million over the next two years and to readapt the production lines in the Brazilian plants. "The Brazilian market has always been very important for Mabe, but Mabe was consolidating itself in other countries before getting to the biggest market of white line of Latin America, Brazil", said the Executive.
The President of Mabe Mercosul said that the cut in the IPI by the Brazilian Government in April this year, for a period of three months and extended for another three months until October 31, caused the industry of the sector to go through an accelerated growth in sales, overcoming the losses registered in the first four months of 2009. Mendizábal said he sees the Government's decision of granting the reduction in the IPI until January 31 for products with lower consumption of energy positively. "Mabe benefited from this system because we do not have products that are not considered ‘A' class in energy consumption".