THE CONSTRUCTION, AEROSPACE AND TECHNOLOGY INDUSTRIES IN BRAZIL

May 29, 2020

E-NEWSLETTER, FROM THE BOARD ROOM, MARCOS LUCOLI

Brazil is not only about carnaval, football and forests. On this article, we are going to delve into Brazil’s broad capabilities in the construction, technology and aerospace innovation industries.

The number of Brazilian internationalised companies has grown considerably in the last three decades as part of the globalisation evolution. Some of the international players have been on the global market since late 70’s.

Several Brazilian companies may benefit from the current crisis because the flee of internal capital tend to devalue the Real (Brazilian currency), making prices attractive. The costs of labour in Brazil can still be low comparing to others and the country does not need to import raw material, due to its abundance of natural resources.

For some business, this is the best time to find partnerships over the borders and establish strong alliances, taking advantage of the low currency price and the large productive capacity of Brazilian companies.

Brazil has a wide range of companies in the international scenario that can be explored. It can be also a great strategical step in supply chain following the popular saying “do not put all your eggs in one basket”. If you are thinking on investing overseas, Brazil can be your silver plate.

Here are some industries that can be interesting due to their success stories in the internationalisation process.

For instance, Embraco, the largest fridge compressors and home appliances manufacturer in the world, is a Brazilian company that in 2003 exported 71% of its production making almost 15 million compressors that year. It also established factories on several countries such as Italy, Czech Republic, China and US. So, if you check under your fridge, there is a great chance to spot a compressor made in Brazil or made by Embraco.

Other business which is probably part of your daily routine is Tupy S.A, one of the largest foundries in the world producing cast iron components to all main carmakers in the world.

If you drive a luxury car, or a low-cost model, there is a great chance that the engine , break system or gearbox has been produced in Brazil, by Tupy. Tupy exports more than 80% of its production to American, Japanese and European carmakers. If you are a BMW lover, and proud of the power and efficiency of the engine of your car, you can thank Tupy for producing blocks, engine head and many other safety parts.

Now, the apple of every Brazilian investor’s eyes, WEG, a big player of the electrical motors and energy industry.

WEG is an electrical machine producer with branches in 36 countries, considered the best and more stable Brazilian company to invest according to  Brazilian stock exchange IBOVESPA, due to its constant revenue growth and global presence and loved by stockholders due to the high valuation of the company.

WEG has a strong presence in Australia supplying electrical engines for diversified industries such as oil & gas, marine, steel industry, mining, farming and agriculture, amongst others. A company that is always innovating and makes huge investments on research and development to keep competitive in a strategic and very challenging industry.

Now, going to aerospace and aviation, considered the most advanced industries, technology and innovation are the fuel to overcome challenges.

Embraer is the third largest air plane maker in the world with more than 50 years of experience in developing and producing air planes for various applications such as agribusiness, executive, commercial and defence.

If you often fly regionally , you have probably boarded a Embraer aircraft.

The success of Embraer is also due to important alliances firmed on the past, allowing it to learn and refine its products. One example is the AMX program to develop, along with Italy, a sub-sonic fighter jet. That program was a success and from the experience Embraer learned how to build commercial jet planes which leveraged the company to a next level on the regional aviation sector on the international scenario.

On the defence industry, Embraer began an important partnership with Swedish company SAAB in January 2015 to develop and produce the Gripen NG, a supersonic fighter jet with a large suit of electronic war and cost effective, delivered to the Brazilian air force on September 2019.

Embraer also released in December 2019 the KC 390 Milennium, a multi-mission military aircraft, the largest military aircraft produced in South America. Embraer defence systems are present in 60 countries around the globe.

Now, let’s look at the construction industry.

When it comes to choosing the best and finest materials to build our dream house, or even when specifying the trending materials that complies with international safety requirements, we tend to look at Europeans suppliers. It is undeniable after all that the Italian design is stunning and German tap ware is elegant and robust.

But how about products that offer German quality and Italian design for attractive prices?

European and American giants are always in the run for a slice of the Latin American construction market where tiles, furniture, structural steel, faucets, pluming among other products are on the list.

However, the Latin American leader on faucets and tap ware, is Brazilian.

Docol is the largest producer of tap ware on South America. The company has more than 60 years of existence and makes strong investments in innovation, technology and design, being also a pioneer on flush systems.

Docol exports to than 40 countries including Australia and New Zealand. If you like playing beach volleyball in Tamarama Beach, in the Easters suburbs of Sydney, go for kite surfing in Brighton Le Sands, or just refresh and swim in Balmoral Beach around the Northern beaches, you have used Docol’s automatic taps to wash your hands or have a shower before heading home.

Brazil is also the second largest world’s producer of ceramic tiles and sanitary ware, exporting to more than 110 countries and all continents. Brazilian ceramic quality and design is state of art.

Due to Italian influence and background in some regions of Brazil , and the entrepreneurship of those immigrants, the ceramic industry in Brazil has developed very strongly. Brazil is the second largest consumer of ceramic in the world according to ANFACER (Brazilian Association of Ceramic Industry).

Here are some of the major players in the Brazilian ceramic industry: Ceramica Portobello, Eliane Revestimentos, VillagresPortinari and Cejatel.

Wrapping up…

Besides football , music and sun, Brazil has a lot more to offer than a nice holiday in a warm beach with great food and fun.

For those willing to do business, there are endless possibilities to explore in every industry you can imagine.

Cheers.

Marcos Lucoli

The post about “THE CONSTRUCTION, AEROSPACE AND TECHNOLOGY INDUSTRIES IN BRAZIL" first appeared on the AUBRBC website.

***

To engage in the latest trends, developments, and opportunities in innovations that involve the deliberate application of information, research projects, inventions, and initiatives within Australia and Latin America, join our community at Technology & Innovation Group. 

Not yet a member? Get connected and be inspired by more incredible Latin American and Australian professionals. Join the growing Somos21 Community.


Other news