Portugal’s Efacec posts first profits in China in 2005

11 July 2006

Lisbon, Portugal, 11 July – Portuguese electromechanical engineering company Efacec posted its first profits, of 1.2 million euros, in China, the company’s chairman said.

In China, where it has been since 1994, “entry into the market was very expensive, but it is now becoming profitable,” said António Cardoso Pinto, in an interview with Portuguese financial daily, Jornal de Negócios, in Lisbon.

Since 1997 Efacec has had a distribution transformer factory, through a joint venture known as Liaoyang Efacec Electrical Equipment.

Cardoso Pinto said that for success in the Chinese market, “it is fundamental to have a local partner and control the majority of the capital in the joint venture.”

“China is a huge market,, double the size of the American market and the European market, and is important not only because of its internal market, but also because of its industrial base,” said Cardoso Pinto.

In 2005 Efacec posted turnover of 335 million euros and net profit of 14.5 million euros.

Cardoso Pinto said that Efacec aimed to “grow through acquisitions outside Portugal. The United States and Spain and are very important, just like China.”

The company is currently preparing to open a factory in Angola, which will produce and repair distribution transformers and will also be able to manufacture and assemble low and medium voltage fuse boxes.

Efacec recently said it aimed to double its financial performance and the size of the group over the next five years and within ten years carry out its Chinese activities also in other continents. (macauhub)