Sao Paulo, Brazil, 29 Nov – Computer components manufacturer MSI Computer started production this month in Sao Paulo, in association with a local partner, the company announced Tuesday.
The Brazilian unit, located in Barueri, in the Sao Paulo metropolitan area, is expected to post turnover of US$45.5 million in 2006, said the company’s director for Brazil, Frank Lin.
The new unit has so far manufactured 50,000 motherboards, a part which connects all computer components together, the company said.
Projections for 2006 are to double production to 100,000 motherboards and graphics boards, used for processing images.
Manufacturing these products in Brazil should reduce prices on the Brazilian market for these MSI Computer products by up to 30%, even while importing 100% of the components from China, the company said.
“We are going to work in a more competitive way and guarantee market availability,” Lin told Brazilian business daily Gazeta Mercantil.
The group has worldwide agreements with the main computer manufacturers and has signed agreements in Brazil for distribution of its products in three large local networks as well as offering technical assistance to Brazilian consumers.
“In 2006, the focus will be on creating a distribution channel culture for our products. For the first time we will have a business policy in that area,” Lin said.
According to MSI Computer forecasts, the Brazilian market should grow by some 30% in computer sales this year, against 2004, to a total 5.2 million units. In 2006 Pc sales are expected to increase by a further 15%, Lin said.
The Brazilian government recently announced a reduction in taxes on computer equipment.
The MSI Computer group currently has its headquarters in Taipei (Taiwan) and a further three factories and a research and development centre in China.
Set up in 1986, the group has an annual production of some 21 million motherboards and 11 million graphics boards, with an annual turnover of US$2.4 billion. (macauhub)