Brazilian manufacturer plans to buy more scales in China

4 October 2007

Sao Paulo, Brazil, 4 Oct – Urano, a Brazilian manufacturer of electronic scales, is expected in 2008 to increase its acquisitions of products made to order in China, the chairman of the company told Macauhub.

Zenon Leite Neto said that over the next year Urano would start importing three models of scale from China. Since 20006, a Shanghai factory – the name of which the businessman preferred not to give – has been sending one model of scales to the Brazilian company.

The only fully-made imported product currently accounts for 68 percent of the company’s sales and 36 percent of turnover, according to Leite Neto, who said that the difference between the quantity of items sold and revenue is explained by the fact that the Chinese scales have a lower final price.

With the additional models, Urano expects products imported from China will account for 85 percent of sales and 70 percent of turnover.

The chairman of Urano said that it was more feasible to buy the finished product than to manufacture it in Brazil, given the lower price of buying in bulk.

Even so, Leite Neto said production at the company’s Brazilian factory, in the state of Rio Grande do Sul, would not end and that it may even continue to produce the models coming from China as of 2008.

“For the sake of company strategy, around 20 to 30 percent of production of those models will remain in Brazil,” he said.

Urano expects turnover of 16.5 million reals this year, which is the same as in 2006 and in 2008 its revenue is expected to rise to between 17 and 18 million reals.

As well as working in the Brazilian market, Urano also exports to Latin American countries such as Mexico, Venezuela and Bolivia.

The company has also closed deals top sell its products to the United Kingdom and India after contacts made at a Shanghai business fair at the beginning of the year. (macauhub)

MACAUHUB FRENCH