APCC looks nice here.
Thursday May 24, 4:18 pm Eastern Time
American Power plans Brazil plant
SAO PAULO, May 24 (Reuters) - American Power Conversion Corp. (Nasdaq:APCC - news), a maker of uninterruptable power supply products, said on Thursday it plans to set up a manufacturing plant this year in Brazil, which is struck by an acute energy crisis.
However, APC'S chief executive in Brazil, Greg Meier, told journalists it wasn't the electricity shortages or the government's power rationing plan that convinced his company to start production in Latin America's biggest country.
``We decided to set up the plant here because Brazil represents 52 percent of business opportunities in Latin America ... Today there are no multinationals in the country that operate in our segment of the market,'' Meier said.
But he added that power rationing was a big chance for the company as ``the market is realizing the need to protect power supplies.'' However, he noted forced blackouts would be bad for everyone, labeling them ``a disaster for the economy.''
APC officials did not reveal investment plans for the plant or its production targets. They said up to 40 percent of the output could be exported to other South American countries. Two production lines should open in September or October and a third would be added next year, Meier said.
He admitted the West Kingston, Rhode Island-based company would have to face competition from local manufacturers of power supply products.
Power rationing, aimed at cutting consumption by 20 percent, is due to start June 1 in Brazil. The country has found itself in the grips of an energy crisis after years of poor investment in the power sector and a severe drought that dried up reservoirs at hydroelectric power plants.
Those plants produce over 90 percent of Brazil's power.
This news has not been figured into price yet. PE is also attractive on this one and growth rates are impressive.
My near term target is $20. Do your own DD
Ron Dior |
