Perstorp Plastic Systems International AB has formed a joint venture with Brazilian container molder Unipac Industria e Comercio Ltda.
The 50-50 venture, Unipac-PPS, will make and sell plastic transport containers for the South American market, especially the region's growing automotive sector.
``We've been following the Brazilian market for some years now,'' said PPS Chief Executive Officer Wiking Henricsson. ``All the big automotive companies are in Brazil.''
Last year PPS opened a Brazilian sales office in Sao Bernardo do Campo, its first in South America, to ``review the South American market and to find a suitable partner for joint development,'' a company statement said.
The venture will serve a market with potential annual sales of several hundred million U.S. dollars, said PPS, based in Perstorp, Sweden. It will operate within Unipac's existing production and sales organization, PPS said.
Unipac of Pompeia, Brazil, operates three plants, including one in Pompeia. Its processes include structural foam, blow and injection molding and thermoforming. It makes bottles and closures, pallets and larger materials-handling containers.
PPS was a division of Perstorp AB, a Swedish chemical firm. But the unit is being sold to Stockholm, Sweden-based Industri Kapital, a private equity investment company.