If nobody cares, I'm going to keep posting stories regarding US corporate belief stories to support my point the other day. Corporate America is not spooked by Brazil, in fact they seem very intriqued.
sf
=============
Dell Said To Build Brazilian Plant To Boost Latin Presence
Dow Jones Online News, Tuesday, August 18, 1998 at 09:39
NEW YORK -(Dow Jones)- Dell Computer Corp., which reports later in
the day, is expected to announce a major foray into Brazil, in a bid to
boost its share of Latin America's fast-growing personal-computer
market, Tuesday's Wall Street Journal reported.
Sources say Dell (DELL), which has lagged behind other major foreign
PC makers operating in Latin America, has signed an agreement with the
Brazilian state of Rio Grande do Sul, to build an assembly plant there.
The plant will serve as a hub for sales in South America's southern
cone, which includes Argentina and Chile, the official said.
Foreign companies with local production plants dominate Latin
America's estimated $6.5 billion PC market. Compaq Computer Corp.,
International Business Machines Corp., Acer Inc. and Hewlett-Packard Co.
together accounted for 42% of desktop and notebook sales last year,
according to Loren Loverde of IDC Latin America, a market-research firm.
Dell, of Round Rock, Texas, ranked ninth with 1.2% of the market.
A Dell spokesman declined to comment on its plans in Brazil. But at
the company's annual meeting last month, Vice Chairman Morton Topfer
said Dell aimed to open a plant there next year and noted that Latin
America is key to its international expansion. The company already
operates regional production plants in Malaysia, Ireland and the U.S.,
and it plans to open a factory in China later this year.
Dell, which has been thriving while other PC makers stumbled this
year, is expected Tuesday to report a 53% jump in profit and a 50% jump
in revenue for its fiscal second quarter, which ended in July. Unlike
most of its rivals, Dell deals directly with customers and builds PCs
only after receiving an order.
PC shipments to Latin America are expected to grow about 19% annually
for the next five years, according to IDC, making the region a strong
source of revenue growth for computer makers. Compaq, the market leader
with 15% of desktop and notebook sales last year, saw its revenue from
Latin America jump 14% to $299 million in the second quarter.
Dell is expected to invest $125 million over five years in its
Brazilian operations, including the creation of a local sales force that
will follow the company's model of selling directly to businesses and
consumers.
Copyright (c) 1998 Dow Jones & Company, Inc.
All Rights Reserved. |
