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Brazilian company Randon, a maker of highway transport equipment, has established a partnership with an Algerian company to assemble trailers in that country.
The final details of the negotiation are being closed by the company's commercial representative, Moacir José Zanini, who is in Algiers participating in the 38th edition of Algiers International Fair.
According to Zanini, Randon is going to export kits of disassembled parts, like trailers, semi-trailers, compartments for sand discharge and fuel tanks to be assembled by the Algerian company.
"We are going to offer all the technology so that the Algerians can assemble and develop the product," he said. Up to the moment, just one kit, which has 160 varied parts, has been exported to Algeria.
According to Zanini, the idea is to export 1,600 items a year to the Algerian company, corresponding to approximately US$ 23 million.
"There is a possibility of increasing the quantity to 3,000 a year," stated Zanini, who prefers not to announce the name of the Algerian partner.
After the trailers have been assembled and sold in the country, Zanini believes that it will be possible to expand the sales to other countries in the Maghreb (which includes Morocco, Algeria, Mauritania, Libya and Tunisia).
Randon has already been exporting to the Arab market for over 20 years. However, this is the first time that the company is going to ship disassembled kits to be finished in Algeria.
According to Zanini, this same partnership already exists with a company in Morocco, but at a lower scale. Currently, around 20% of Randon production is turned to the foreign market and the company target is to increase this figure to 30% in years to come.
The company
Randon, the first company of the kind with 100% Brazilian capital, based in the city of Caxias do Sul (in the southernmost Brazilian state of Rio Grande do Sul), is made up of a group of seven operational companies.
They employ around 5,400 people in 10 industrial units in São Paulo, in southeastern Brazil, Rio Grande do Sul and Argentina. The company exports to over 100 countries.
Business Algiers Fair
Brazilian company Tangará, a producer of powdered milk, which is also exhibiting at the 38th edition of Algiers International Fair, closed a deal with an Algerian company to export 200 tons of powdered milk.
According to the export manager of Tangará, Silvia Chaddad, the shipping will take place still this month.
Apart from the Algerian businessmen, Tangará also made contact with clients in Jordan and Mauritania. To the Arab countries, the company already sells to Algeria, Tunisia and Egypt.
"Our exports are still just starting, they vary from 1% to 2% of production," stated Silvia.
According to her, the company target is to turn 30% to the foreign market. "We want to grow at least 30% in months to come," she said.
The Tangará factory is in Vitória, in the southeastern Brazilian state of Espírito Santo. The company productive capacity is 20,000 tons of powdered milk a month.
According to the secretary general of the Arab Brazilian Chamber of Commerce (CCAB), Michel Alaby, over 150 buyers visited the Brazilian stand on the first day of the fair, which was opened to the public on Friday, June 3 and ends on Thursday, June 9.
According to the CCAB operations coordinator, Rodrigo Solano, the organization's stand was sought mainly by Algerians interested in buying Brazilian rubber and paper.
At the Brazilian stand, which had an area of 150 square meters, organized by the CCAB, seven companies are present.
Apart from Randon and Tangará, other companies present also include Azaléia and Bical, in the shoe sector, Interceller, a food processor, Agri-Tillage, of agricultural equipment, and Fortlev, a maker of tiles and water tanks.
ANBA - Brazil-Arab News Agency - www.anba.com.br
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