SAO PAULO, BRAZIL — Italian injection press maker Sandretto Industrie SpA — one of the largest makers of presses in Brazil — plans to double the size of its manufacturing plant in the South American country by the end of the year.
Sandretto do Brasil Ltda. plans to focus the additional capacity on the large-tonnage market, up to 1,100 tons, said Mario Manzo, general manager of Sandretto Industrie SpA. He was interviewed at Brasilplast 2001, held March 5-10 in Sao Paulo.
Sandretto makes about 200 machines a year in Aruja, Brazil, but only a few of those are large-tonnage presses, Manzo said. Sandretto do Brasil also is bringing some of its subassembly work in-house.
The firm will add about 20 people to its staff of 70 and will double the operation's size to 64,500 square feet by leasing a building next to its current factory, he said.
"What we are doing is modifying the logistics of production," he said. "One building will be for large machines; one building will be for small machines."
Sandretto do Brasil also will begin exporting some of its machines to Turkey and Eastern Europe, the first time it has sent machines beyond South America, Manzo said. The Brazilian government is giving strong financial incentives to export, he said.
Sandretto wants its Brazilian subsidiary to reach the same manufacturing capabilities as its Italian headquarters, so it can make any machine Italy makes, he said. Brazil now makes 90 percent of the machine locally and imports the rest of the components, he said.
"At the end of the process, we should be able to have the same product in Brazil and Italy," Manzo said.
The company is making additional investments in Italy and does not expect to lay off any of its workers there as a result of expanding Brazil, he said.
Manzo said he has high expectations for the Brazilian economy.
The key to the Brazilian market is to expect the ups and downs, he said. "You can't be nervous."
The market can be volatile. Seven years ago, it supported 2,000 injection presses a year, but now supports about 1,000, he said. Manzo said he expects to get back to that level in five years.
Sandretto do Brasil has been profitable all three years it has been making machines there, he said. The company has annual sales of about US$25 million.