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Brazil becomes attractive for GE again

posted Jul 19, 2012, 11:20 AM by Webmaster IMGroup   [ updated Jul 24, 2012, 6:23 PM ]
In another attempt to expand its presence in the lighting industry in Brazil, the General Electric conglomerate has just hired an executive to run only the company's operations in this area in the country. With a mission to conquer space, especially in the market for public lighting, Alexandre Ferrari will also in charge of the development project of the new lamp plant of the multinational in Brazil.

"The Brazilian market is a focus of GE Lighting, since the country will have great opportunities for improvement of infrastructure connected with this sector," said the new managing director of GE Lighting in Brazil.

Ferrari, after 18 years of experience in competitor Philips, resigned as director of the division of professional luminaires for Latin America of the Dutch company to take over, starting today, the command of ​​GE Lighting. This segment was in charge of Lionel Ramirez, who leads all lighting arm of the multinational in Latin America. "We need someone who thinks only Brazil," explained the president's global GE Lighting, Maryrose Sylvester, who visited Brazil last month, in order to align with the team this new phase of the company.

The development of this area in the country has three pillars: the public sector - which involves the lighting of streets, public buildings, stadiums and infrastructure around the stadiums; the professional sector (lighting of offices and shops) and the retail sector (residential lighting). The idea is to create the office to handle the unique needs agility to bring Brazilian subsidiary. The executive will have the function to get closer to the government and engage mainly in the projects of the Olympic Games and 2014 World Cup. "We see many opportunities in the area of ​​public lighting in Brazil," said Maryrose. According to the calculations of the company, in Brazil there are now 15 million light spots, of which 9.5 million need to be renewed.

To capture the market, GE will focus on LED. Abbreviation for light emitting diodes, this lighting system is being tipped to replace incandescent (traditional) and fluorescent lights. GE invests in energy savings - and therefore reduced costs - that LED provides. In addition, it must seize the space left for new rules in the sector. The decree No. 1007, December 2010, set a schedule to reduce the use of incandescent light bulbs and increase the participation of more efficient technologies. Since June 30, incandescent lamps for general use with a power of 150W and 200W are no longer produced and imported in the country.

Given this scenario, the company plans to build an assembly plant for efficient lighting products. The items will be brought from China, as the multinational does in all its subsidiaries. That would be the second mounting unit of GE Latin America after the Mexican operation. Besides these, the company has three factories in the U.S. and one in Hungary.

According to Valor, investments in the Brazilian plant should be at the level of US$ 20 million. "We are analyzing the cost and location. Will define this year," said Maryrose.

The plan would represent a return of GE production to the Brazilian market. Today, most lighting products sold by it in Brazil come from the US. Until 2008, the company had a fluorescent factory in Rio, but decided to sell the unit to the Indian Saratoga.

The focus on the development of emerging markets is also connected to the company's need to bring power to an area that had the lowest return among all the industrial arm. The segment solutions for homes and businesses - where lighting is included - had profit of $ 300 million, a decline of 34% compared to 2010. The results of the energy sector and infrastructure also fell, while the increased aviation, health and transport. The profit of the industrial area remained constant at $ 14 billion.