Amsted Maxion to expand export sales

The largest manufacturer of railroad cars in the country, Amsted Maxion wants to expand its activities on the international markets in order to compensate the low volume of orders it has been receiving firm Brazilian concessionholders. The domestic demand totaled 3,500 units in 2006, less than half the 7,500 units the previous year. Without any prospects of domestic market recovery before 2008, the company wants to raise the share of exports in its gross revenues to 50% from the current 15% to 30%.

The growth of export sales is expected to come mainly from Latin America and West Africa, where its railroad cars and components — such as wheels, trucks and couplings — are competitively priced due to the delivery logistics. The company also intends to increase sales to the United States, where it has support from its American partner Amsted Industries. East Europe and Asia also are in its sights, although with lower importance, along with the Middle East.

“We are not exchanging the domestic market for the international market. We are taking advantage of our vocation for exporting. It also is a way of using our excess capacity at the factory, which is capable of producing up to 10,000 railroad cars per year,” said Vicente Abate, director of sales and marketing for Amsted Maxion, adding that the company has sought to reduce costs to fight an unfavorable exchange rate for exporters in order to compete against Chinese, Indian and American producers.

Mauritânia

Abate said that the company is supplying railroad cars with higher competitiveness to Mauritânia, a North African country, than a producer of cars located in the south of the continent because of the facility for delivery. Currently, the manufacturer has a contract to export railroad car wheels to Saudi Arabia, although the amounts and volumes involved were not revealed. The mineral and agricultural commodities sector currently present the highest demand for railroad cars and that is why the company is interested in the overseas markets.
“We are participating in a number of international tenders. Sometimes, there are Brazilian companies also participating. Basically, we act through commercial representatives,” reported Abate, adding that the company’s international clients include giant firms such as General Electric, Caterpillar, Madison, Komatsu, and others. “The increase in our exports could even include improved operating profitability and raise our competitiveness also on the domestic market,” he said.

Amsted Maxion manufactured a little more than 3,000 cars last year, of which 2,174 units were delivered during the first half of the year. The total of these orders represents sales of R$ 562 million, according to have a Notice to the Market issued by the company’s Brazilian shareholder, Iochpe-Maxion, which owns 50% of the firm’s capital stock.

“What happened in 2006 was an adjustment. We expect that in 2007 the sector will order 1,500 units and, as of 2008, average annual demand will be 3,000-4,000 cars,” he said.

The company sought to compensate the few new units last year by increasing its railroad car refurbishment services, with a contract to repair cars for Brasil Ferrovias after it was acquired by América Latina Logística (ALL). The volume of the repairs was still relatively small last year: 100 units. This year, however, the company is expecting to refurbish about 1,000 cars, including orders from MRS Logística, which holds a concession in the Southeast region.

One of the company’s bets for 2007 is a multi-cargo car, equipped with two trucks and six axles. A prototype was tested on ALL’s lines. The car permits a 60-ton increase in capacity (for the two-truck, 4-axle model) to 84 tons.
The new car permits an increase in gross tonnage of about 40% and can run on low capacity lines. It has a sliding base for unloading grains and ore that, when closed, acts as a flat floor, permitti

Fonte: Jornal do Commercio