Brazil plans to set up product distribution center in China

28 April 2006

Sao Paulo, Brazil, 28 April – Brazil plans to set up a distribution center for Brazilian products in Shanghai in the second half of this year as part of the internationalization strategy of its companies, Juan Quirós, president of Brazilian export promotion agency, Apex, said Thursday.

Quirós said that the unit would support the sale of Brazilian products in China.

“These centers make it possible for small and medium-sized companies to sell their products overseas, with government support in legal terms and in terms of a space to set up,” he said.

Currently, Brazil has distribution centers in Dubai (United Arab Emirates), Miami (United States) and Frankfurt (Germany).

Another distribution center is due to be launched in Lisbon, on June 12, in the region’s main logistical area some 20 kilometers from Lisbon’s port and 15 kilometers form the airport.

Apex also plans to open a distributions center in Warsaw, Poland in the first half of this year.

The distribution center is a place where small and medium-sized companies from many sectors can store their goods, take part in business deals with foreign buyers and provide a place to locate their offices.

The centers also make it possible for the companies to offer speedy delivery as they can keep stocks cross to their destination.

The distribution center in Portugal, for example, will house products from 150 Brazilian companies from 20 different sectors at an initial investment of 280,000 euros.

One of the main advantages for companies that become a part of the centers is cost as the total spec is rented by Apex, which splits the rental into small parts with the companies, Quirós said.

Another advantage is that the companies only pay customs taxes once their products are sold and leave the distribution center.

The main objective is to encourage internationalization of Brazilian companies by opening subsidiaries in foreign markets after being part of the distribution center for 18 months.

The center also makes it possible to cut out intermediaries, shorten the distance between production and consumption, which means companies can set more competitive prices, Quirós said. (macauhub)