Sao Paulo, Brazil, 15 May – Trellis, a Brazilian company specilised in data and voice communications products and solutions, plans to transfer 90 percent of its production to China, the company’s chief executive, Cássio Spina said in Sao Paulo.
“The decision is not what the company wants but it is inevitable,” Spina said, adding that with the savings made from transferring production to China the company could lower its end price by around 25 percent, which makes it more competitive.
The company had already adopted the strategy some six months ago, but had only ordered boards to be manufactured by third parties. The initiative has now been widened to reduce costs and compete with other products imported from China.
Amongst the main factors influencing Trellis’ decision are high interest rates in Brazil, the lack of tax incentives and exchange rate variations, which, sometimes benefit imported products.
With a laboratory and factory in São Paulo, Trellis has said it will maintain these operations in Brazil, where it plans to grow by 35 percent in 2008. (macauhub)