Small and medium-sized Brazilian companies do business in China

6 December 2006

Sao Paulo, Brazil, 06 Dec – Small and Medium-sized Brazilian enterprises (SMEs) have followed in the footsteps of their larger counterparts and are doing business deals with China, Brazilian financial daily Valor Economico, reported.

The report, which was the paper’s main headline Monday, said that clothing and footwear manufacturers, metal working equipment and retail companies from Brazil had signed partnership agreements with Chinese companies, as a result of recent visits to China.

“I went [to China] to improve relations. We had already been importing some products for testing and now we plan to bring at least ten items from over there,” said Marcelo Deola, a partner in small textile manufacturer, Picotex.

Picotex produces linings for shirts and also wants to distribute articles with zippers, elastic and lace from China.

“Practically all the articles from there (China) are cheaper than in Brazil. There are cases in which the costs are a quarter of the price we are paying now, and that’s without negotiating a better price for high import volume,” Deola told Valor.

Jader Westrup, one of the partners of Brazilian metal working company Santa Libera, gave up on increasing capacity of the Brazilian factory and began buying pre-finished Chinese products. The company is to receive one container of Chinese products per week, which will be finished in Brazil and sold on to Africa, Westrup told the paper.

Footwear manufacturers João Batista (Santa Catarina state) were also in China a few months ago and are negotiating the acquisition of items such as buckles and synthetic leather.

Other business owners are in the “investigation,” the president of the Micro and Small Companies Association, Luis Carlos Rosin, said.

Recently arrived back from China, Rosin told the paper that he planned to bring together small manufacturers and bring cloth to Brazil, although he noted that transport costs were the biggest obstacle for SMEs.

Vice-president of FIESC (Federation of Industries of Santa Catarina State) Glauco José Côrte, who was also a member of the business mission from Santa Catarina state to China in October, in an interview with Macauhub highlighted Brazil’s interest in China, particularly in the “textile, metal working, construction and parts and accessories,” sectors. (macauhub)