Schneider to invest US$ 15.3 million in distribution in Brazil
Valor Econômico - 06/17/2008
Christian Wiest, International Vice-President for International Operations of the French company Schneider Electric, has been looking closer and closer the figures of the Brazilian branch. Responsible for the businesses of the electric equipment manufacturer in the Middle East, South America and Eastern Europe, Wiest believes that, in half a decade, the difference that separates the sales leader in its region, Russia, from the second place, Brazil, will be simply wiped off the map. According to data from 2007, the French multinational had earnings close to 600 million euros in Russia, against 210 million euros registered in Brazil. At first glance, therefore, the distance seems almost insurmountable, but the officer doesn't think so. And he bets in the potential of the sectors: iron ore and oil, and also in the growth of economy to place them side by side. Considering the last actions of Schneider Electric in Brazil, Wiest's declarations are not a mere speech. After having invested R$ 20 million (US$ 10.4 million) in 2007, the officer gave the green light for a new investment of R$ 25 million (US$ 15.3 million) in the country. Besides the traditional industrial renovation, the resources will be used to erect a second distribution center in São Paulo (SP), which is to be ready in October. The company already has one in the country, which is also installed in São Paulo. Besides the distribution centers, the multinational has four plants in Brazil. One in Curitiba (PR), another in Sumaré (SP), another one in São Paulo (SP) and one in Guararema (SP), which also works as an export platform. But Schneider's appetite for the country is not restricted to R$ 25 million (US$ 15.3 million). Notwithstanding not revealing names, Christian Wiest says that there is a negotiation underway to acquire a company in Brazil. Everyone in the French multinational says the green and yellow boom is only in the beginning. Seeing Schneider's number in the country themselves is enough to understand the optimism of the group. The projected income for this year is R$ 720 million (US$ 441.7 million), which means a 20% growth over the sum registered in 2007. But the positive projections are not restricted to the sales in the domestic market. The favorable situation also includes the exports from Brazil. Even with an unfavorable foreign exchange rate, Schneider projects an income of US$ 44 million for this year, little more than the US$ 39 million registered last year. In 2006, foreign sales reached US$ 26 million.