Brazilian electric shower manufacturer to open factory in China

7 April 2006

Sao Paulo, Brazil, 07 April – Brazilian electric shower manufacturer Fame plans to set up a factory in China to increase sales in the local market and start exporting to Vietnam, company officials said Wednesday.

Fame began exporting to China four years ago and currently ahs an office in Shanghai, with a staff of 25, which is responsible for direct sales to Chinese representatives.

The company’s business director, José Armando Coelho Filho, said that the launch of a unit in China would make distribution easier and also reduce labor costs by around 15 percent.

Filho told financial newspaper Valor Económico that the project also included adapting the manufacturing of the showers to local specifications, with hotter water and higher resistance to corrosion by minerals in the water.

Filho also said that Fame would decide by the end of the year whether its Chinese investment would be carried out with a local partner or with its own capital.

“As it is a large market, we will have to go into it with a high production capacity,” Filho said, adding that Fame also planned to create a technical assistance network for its products in China.

Currently, the company has five factories in Sao Paulo state, which is the richest and most populated state in Brazil, with monthly production of 20,000 units.

Around 5 percent of total production is exported to China, with the authorization of the China Certification Quality Centre, obtained in 2003. (macauhub)