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The spare parts market
“When a country runs out of possibilities, you need to look for ventures further afield in places that have better growth prospects,” says Luis Giner, general manager of Trimplast. The Spanish company, founded in 1989, designs and produces technical moldings, in plastic and rubber, for windshields, window seals, acoustic seals, insulation, and others. The company has entered the Brazilian market and distributes its products through local firms.
Trimplast does not manufacture in Brazil, though Giner says this may take place in the future. Giner believes that this emerging market could account for 4-5% of total sales in the long term.
Giner admits that there are obstacles to entering the Brazilian market: “Although it’s important to have a presence, because Brazil offers plenty of opportunities, there are also complications. Trade tariffs are quite high and freight charges are expensive.” To avoid paying such high tariffs, explains Giner, one approach is to “export the product semi-finished and then complete it locally.”
Continues Giner, “There are competitors in the plastics extrusion and induction market in Brazil that are cheaper, and clients usually decide on price not quality.” But, he believes, “Quality wins in the end…and expansion abroad is worthwhile.”
In the 1990s, Trimplast expanded internationally through exports. The firm also operates in the construction, machinery, bus, and electronics sectors. Today Trimplast’s products are sold to more than 1000 clients in more than 40 countries, including the U.S., India, China, Mexico, South Africa, and Brazil.
Products manufactured by Trimplast. Photo: Trimplast
Artícle published in november 2011
Arantxa Noriega
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