SAO PAULO, BRAZIL - Canadian die and air-ring producer Alpha Marathon Manufacturing Inc. is joining forces with Brazilian blown film extrusion line manufacturer A. Carne-valli & Cia. Ltda. to build coextrusion lines for South America and Europe. The two firms announced at the BrasilPlast'95 trade fair that they are forming a $1.5 million joint-venture company, Polysystem do BrasilLtda., with a 32,400-square-foot manufacturing plant at Jundia¡, near SÃo Paulo.
Alpha Marathon initially will produce in Canada its dies and air rings for use in producing the new lines at Carnevalli's existing SÃo Paulo plant. The first complete line is to be ready in Brazil in August, according to Carnevalli commercial manager Luiz Antonio Simoes.
Polysystem will occupy an existing plant and employ 25. It eventually will make equipment with screws of 30-40 millimeter diameters capable of making up to five-layer coextrusions, Simoes said in an interview at BrasilPlast, held May 18-24.
He noted that the opportunities for coextrusion in the flexible packaging market in Brazil and elsewhere in South America are growing strongly.
Alpha Marathon President Alfredo Bentivoglio sees potential Latin American demand for coextrusion equipment of about $50 million a year. In Brazil he anticipates the new joint venture can capture up to half of a market worth roughly $15 million. Last year, Alpha Marathon had business worth $4 million in Brazil.
Bentivoglio admitted that selling into Brazil had beendifficult in the face of high import duties, but said the joint venture would help to open that door for his firm. Having a local partner should help to lower the cost of production and improve machine quality, he said.
Carnevalli and its new partner, from whom it has bought die and air-ring technology for the past four years, plan to present their first coextrusion line at the K'95 show in Dusseldorf, Germany, in early October. It will be a 1.2-meter, three-layer coextrusion unit.
Bentivoglio, in an interview at BrasilPlast, said the venture also will offer the partners a price and technology advantage in the Italian-dominated European market, where he predicted the new company can capture up to 5 percent of a potential market of $200 million.
``In Europe, nobody has been able to penetrate their [Italians'] market. Now, with the help of Carnevalli and this joint venture, we'll be able to sell quite easily,'' he said.
Bentivoglio said Carnevalli has boosted its production from about 80 machines in 1990 to 200 last year. He said the firm has received inquiries from Argentina, Colombia, Chile and Mexico about the new coextrusion lines.