Thanks to the current and former Presidents, Luiz Inácio Lula da Silva and Fernando Henrique Cardosos, in power 1995-2002, the country is now open to the world. Import substitutions have been abolished, leading to extensive foreign direct investments. Both the economy and the political climate have improved and are more stable. The trade policy, an important part in foreign affairs, is getting stronger. In 2006, the export increased by 23 percent and the import by 17 percent. Opportunities for growing foreign trade look great and the government is trying to stimulate export further.
More Swedish companies set up business
Sweden and Brazil have a long history of good business relations. Scania and Volvo are two examples of large Swedish companies with production in Brazil. A little more than 200 Swedish companies are active in Brazil today and together they have a yearly turnover of around SEK 50 billion. São Paulo is often called Sweden’s largest industrial town.
– Because of a stable economic and political development in the last few years, more Swedish companies than before are investing in the country and the region, says Klas Ålander, head of information at FlexLink, established in the Brazilian market six years ago.
Brazil is Latin America’s largest economy and the world’s twelfth largest market with almost 200 million inhabitants. These two reasons attracted FlexLink to set up business in the country.
– Brazil is a huge market with a large, young middle class (the median age of the entire population is 27.81 years), lots of industries and rich in natural assets.
Two local offices
FlexLink is automating the production flow in the manufacturing process like processing, filling, assemblage and packaging. The company chose to focus on a few major segments like automotive, industry, electronics and health care in Brazil. Both locations in São Paulo and Pôrto Alegre are doing well and the company’s sales are growing nicely. FlexLink has 20 local employees today.
Straightforward and direct
According to Klas Ålander, the Brazilians have a very positive view of Sweden.
– To many Brazilians, Swedish products represent high quality and our brand names are well known. They simply have a positive view of Sweden.
In business, the Brazilians are known to be efficient, structured, profit minded and not willing to delay negotiations, which Klas Ålander agrees with.
– Brazilians are very straightforward and easy to do business with. You are well received.
Expansion plans
FlexLink is active in 28 countries around the world and together with other partners they are represented in 60 countries in total. Since the market entry in Brazil has been successful, the company is looking at further expansion in more South American countries.
– First and foremost, we want to build a sound platform in the Brazilian market, but we are certainly looking at other countries in South America. Eventually, we are looking at expanding in other countries.
Emelie Ring, Editor