São Paulo – The 10th edition of Automec, a fair in the auto parts sector that takes place in São Paulo, started well for Jordanian engineer Saleh Awwad and for Brazilian businesswoman Karla Rosane Kalef. They both participated on Tuesday (12) in negotiation roundtables promoted by the Brazilian Export and Investment Promotion Agency (Apex) and by the Brazilian Association of Auto Parts Manufacturers (Sindipeças) and announced that they aim to do business in future.
Karla’s company, NSO Borrachas, produces gaskets, hoses and pluckers, and Awwad came to Brazil seeking automotive products and agricultural machinery.
This, however, should only be one deal among so many others that the Arabs participating in Automec should close in Brazil up to Thursday (13). Although the event ends on the weekend, it is in the first two days that most deals between Brazilian and foreign companies should be closed. According to the organizers of the event, importers from over 30 countries and 50 Brazilian companies are participating in the roundtables.
Engineer Awwad is in Brazil for the third time, and not by chance. He says the country offers good business opportunities. "Ever since my first trip to Brazil, I noticed that companies here offer good negotiations for companies and for the auto and agricultural product industries," he said.
Although he is looking for parts for diesel engines, turbo compressors and filters, Awwad is greatly interested in agricultural machinery. The Jordanian plans to send the products to his country of origin. A Control Links Engineering representative, he also distributes parts in other countries, especially those of the Gulf Cooperation Council (GCC), the economic bloc that includes Saudi Arabia, Oman, Qatar, Bahrein, Kuwait and the United Arab Emirates, and the Levant (Iraq, Syria, Lebanon, Palestine and Jordan). "Iraq is living a moment of reconstruction and development. That is where we should ship most products," he said.
Apart from the nations of the Middle East, countries in North Africa are also attractive to Awwad. Libya, Egypt and Sudan are among them. According to the engineer, the current conflict in Libya does not affect long-term business and Sudan, which is now divided into two countries, represents a great business opportunity. "It is a great chance for us to do business because (South) Sudan is a virgin market, which needs everything," he said.
Another businessman making use of Automec to do business is Fazlollah Epadian, from the United Arab Emirates. He is seeking several kinds of parts for vehicles, especially for distribution in Dubai, although he is complaining about the prices. "Brazilian products are very expensive, though the quality is good," he said. Awwad also said that Brazilian products are expensive. He said they are up to 35% more expensive than similar Chinese products, but he praised the quality. "Products made in Brazil have a life span of between three and five years. Similar products made in China do not have the same quality after two years in use," he pointed out.
Sindipeças has not yet disclosed its results for last year, but estimates that the auto parts sector revenues may have reached US$ 49.7 billion in 2010, growth of 31.3% over 2009 (in local currency, the growth is estimated at 14.2%). As was the case in the previous three years, the sector expects to have closed the year of 2010 with a trade deficit. The union forecasts a deficit of US$ 3.5 billion for Brazil. In 2009, the deficit was US$ 2.4 billion.
*Translated by Mark Ament
