Brazilian Compressor Maker Leaps To Asian Market
Travel to trade shows in Europe and you’ll see compressor manufacturers headquartered in the United States, showing their wares in booths staffed by representatives from offices in European cities. The reverse is also evident, with European-based companies having North American operations.
Attend a press briefing and you’ll hear about mutual marketing agreements in which one U.S. manufacturer sells one of its most popular compressors through another manufacturer with a high profile overseas, while that overseas company offers its showcase model in the United States under the U.S. company’s name.
Open the back of a domestic refrigerator on a service call and you may see a compressor originating from anywhere from South America to Asia.
One company that is making a major leap in the global market is Embraco. The Brazilian multinational company, which wants to strengthen its participation in the Asian commercial refrigeration market, has launched a drive to sell its compressors and condensing units to Chinese consumers.
Embraco (which has a presence in the United States through Embraco North America, Inc., of Duluth, GA) showed its product line at China Refrigeration 2002 this spring in Shanghai. Highlighted were the VCC, EC, NE, NB, T, and J compressors and condensing units.
The products shown were for such commercial applications as refrigerated counters, freezers, and refrigerators.
The company’s main export item at present is the VCC (variable-capacity compressor). It was promoted for what the company said was its “low energy consumption and lower noise level.” The compressor “further enables a refrigerator or freezer to offer better food conservation due to temperature stability and quick freezing time,” the company said.
Furthermore, the NB, NE, T, and J compressors can now be applied in window air conditioners and dehumidifiers. In accordance with the policy previously established in Embraco units around the world for preserving the environment, all compressors are compatible with environment-ally friendly refrigerants.
GETTING CLOSERThe company wants to get closer to its customers in the Asian market. One strategy is to import compressors produced in the Brazilian and Slovakian units and stock them in China to meet customer requests in a short time.
“This involves a latent market with the tendency of growing more and more over the next few years. Today the company has 13% of the domestic refrigeration market share in China,” said company officials.
Empresa Brasileira de Compressores S.A. (Embraco) was founded in 1971. Globalizing came in the 1990s through the acquisition of its first overseas factory. Currently, in addition to the Brazilian plant, Embraco has units in Italy, China, and Slovakia, and offices in the United States and Singapore. Around 9,000 people are employed worldwide.
With a productive capacity in excess of 23 million compressors per year, the company sells 12 different product series and models adapted to different markets in more than 80 countries. In addition to compressors for domestic and commercial refrigeration, condensing units are also assembled for the commercial segment.
Publication date: 06/03/2002