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How Brazil Handles the Current Crisis in its Foundry Industry
Considering the great potential and capabilities of a country which has a population of more than 200 million and ranked No 7 in the world´s annual casting production, Brazil´s foundry industry is facing a difficult crisis at the moment.
Frankly speaking, the FENAF - 16th Latin American Foundry Fair held from September 28th- October 1st 2015, was a mirror of the current situation. On the other hand, we have met exhibitors and visitors who believe in a rebound within the next 3 to 5 years.
Remo DE Simone, President of the Brazilian Foundry Association (ABIFA), cuts to the chase when he opened FENAF 2015 in a quite moderate opening ceremony. “The modesty of a rather simple opening has a special meaning, success. Because it is the end of an exhausting process of doubt, fears and constrains, but culminating with the result level of the event although not excellent, can be considered as “good” with an occupancy of 51% of the initial total space.” In fact, we have met the big suppliers in the industry from Italy (supported by AMAFOND), Germany, Spain, US and from Brazil of course and visitors, potential buyers and investors.
Following Remo de Simone’s words “FENAF in this context has got an enormous importance in contrast to an unquestionable reality, but what will show in the time is the technical strength of the sector, the ability to resist and the belief that there is no evil, that will always continue.” He thanked all domestic and international exhibitors, who took part with an entrepreneurial spirit in this period, putting their corporate image over the crisis.
When asked about the future prospects for the Brazilian Casting Industry, De Simone points out that Brazil will not be discouraged. In a country, where the automotive sector has huge space to grow considering the high average number of people per vehicle. For this reason more than 20 billion US$ will be invested by 2020.
Furthermore, the ABIFA Leader is also not dismayed by seven years of lost growth in Brazil. On the contrary, he considers the social necessity to increase the employment.
The exchange devaluation should be faced by strong public and private investments in the infrastructure of the country and with the steady belief that regardless of political and economic mistakes, determining factors will emerge as early as the second half in 2016, when a slow but gradual return to growth process will begin (source: FGV Institute, Brazil).
Summarizing by own observation and many talks with officials, exhibitors and visitors, the bottom of the recession in Brazil´s foundry industry has already been reached, but the executive managers in Brazil also have to act now by political demands and future investments.
Listening to the respected lecture of Dr. Flender, President of the German Foundry Association (BDG), he presented the current German and European figures of the Industry, it was absolutely clear that upswing starts with the investment in the domestic business.
<link file:7579 _blank download file> Dr. Erwin Flender (BDG) / Powerpoint Presentation
<link file:7671 _blank download file> ABIFA Figures Brazil
From one point of view, it was beneficial to have the FENAF 2015 in Sao Paolo to experience the reality of the situation. But it was also an opportunity to have a clear understanding of the capabilities and possibilities in Brazil and Latin America.
Good Luck Brazil – See you at FENAF 2017!