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April 17, 1995 02:00 AM

BRAZILIAN PACKAGING MARKET SHOWS POTENTIAL

Tom Ford
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    CHICAGO - Of all the Latin American markets for plastics and packaging, Brazil offers the strongest opportunities, according to officials of the Centro de Technologia de Embalagem (CETEA), an industry development group in Campinas, Brazil. Speaking at Flex-Pak '95 in Chicago, CETEA coordinator Luis Madi said the plastics packaging industry in Brazil has reached about $1.5 billion annually on production of about 1 billion pounds per year, and that 60 percent of all resin production is committed to packaging.

    ``Packaging companies in Brazil are availing themselves of the fact that we have a healthy economy - the 10th largest in the world - and that the packaging industry is growing along with the general economy,'' he said.

    ``Our economy is in contrast to that in other Latin American countries such as Mexico; the monetary system is stable, and the infrastructure is in place.''

    Brazilian packaging companies offer a full range of capabilities, including monolayer and multi-layer film extrusion, metalizing and six-layer coextrusions. They also offer a full range of food-related and industrial applications, and a developing rigid plastic container industry.

    He said joint ventures also are a growing option. In January, Viskase Corp. of Chicago and Plasticos Polyfilm of SÃŒo Paolo, Brazil, formed a venture to make a variety of packaging films.

    ``The Brazilian market will focus closely on the development of products for the lower-income classes, because consumption in that class has increased steadily as the economy has grown,'' he said.

    CETEA also helps the industry to develop ways to grow, including in the recyclables area, for which Brazil has a tax and other limiting legislation in effect. It offers research and development services in machinery, materials and business planning.

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