The United States is the third-largest exporter of plastics processing machines to Brazil, behind Germany and Italy, according to a report from the American Consulate in SÃo Paulo.
U.S.-made machines have captured 16 percent of the import market, the report said. Germany holds 25 percent, followed by Italy with 23 percent. France is now fourth, with 10 percent.
The Europeans' strength comes from long-standing cultural and immigration ties, government financing and the large number of German and Italian subsidiaries in Brazil, the report said. However, U.S. machines are becoming more popular, according to the consulate report.
In 1994, the U.S. shipped $25.8 million worth of plastics processing equipment to Brazil, surpassing France for the first time to move into third place. Exports to Brazil jumped in 1995 to $42 million, a 63 percent gain.
In 1996, the report said, Brazilian processors bought $46 million worth of U.S.-made plastics machinery. The number is expected to reach $52 million in 1997.
When adjusted for inflation, Brazilian imports of U.S. equipment are growing 8 percent a year. The overall import market is growing at 7 percent.
As the largest industrial country in Latin America, Brazil has about 5,000 plastics processing companies, with a total installed base of 45,000 machines.
Those numbers come from
DNMAIP, the national department of machines and accessories for the plastics industry in Brazil. DNMAIP says there are about 1,300-1,400 injection presses, 300 blow molding machines and 400 extruders sold each year in Brazil.
Brazil is the biggest plastics machinery producer in South America, and sells its equipment throughout Latin America.
The consulate's report does not address the Brazilian government's move, effective April 1, to slow imports by requiring quicker payment terms for imported products. The report came out in March.