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FOR IMMEDIATE RELEASE No. 2699
Mitsubishi Electric Establishes Sales Company in Brazil
Targeting accelerated expansion in growing market
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Tokyo, September 27, 2012 - Mitsubishi Electric Corporation (TOKYO: 6503) announced today that it has established a new sales company in Brazil, named Mitsubishi Electric do Brasil Comércio e Serviços Ltda. (Mitsubishi Electric do Brasil), which will begin doing business on October 1. Including sales by this new company, the Mitsubishi Electric Group is aiming to raise total annual sales to approximately 160 million US dollars in Brazil by the fiscal year ending in March 2014, mainly through expanded sales of factory automation (FA) equipment to manufacturers, a field that is seeing remarkable growth in Brazil.
Mitsubishi Electric has been strengthening FA equipment sales in recent years, in addition to providing after-sales services for electrical equipment at power and industrial plants through its wholly owned subsidiary, MELCO-TEC Representação Comercial e Assesoria Técnica Ltda. (MELCO-TEC). Melco CNC do Brasil S.A. was established in July through MELCO-TEC's 91% acquisition of a local distributor's computerized numerical controller (CNC) sales and service division.
Positioning Brazil as a priority market, Mitsubishi Electric decided to strengthen its sales networks by establishing the new sales company, which will incorporate the operations and workforce of MELCO-TEC. Mitsubishi Electric do Brasil will strengthen links with distributors and build sales channels primarily for FA equipment, and pursue sales opportunities for other Mitsubishi Electric products as well. In addition, the new company will provide Mitsubishi Electric Group companies with market information and business know-how covering matters such as taxation, labor, legal affairs, regulations and customs in Brazil.
"Brazil's rapid industrial expansion makes it an attractive market for Mitsubishi Electric," said the firm's designated president, Kazuo Kurokawa. "With our new, integrated sales company, we will work to further develop Mitsubishi Electric's presence here and thereby enrich the lives of Brazilians."
Brazil, the world's fifth largest country with a population of 191 million, and a real GDP growth rate of 7.5% in 2010 according to the IMF, is garnering attention as a fast-growing emerging market. Capital investments in manufacturing equipment are expected to help drive continued growth, spurred by major investments in infrastructure and other areas, and plans to host major international sporting events.
New Company
Positioning Brazil as a priority market, Mitsubishi Electric decided to strengthen its sales networks by establishing the new sales company, which will incorporate the operations and workforce of MELCO-TEC. Mitsubishi Electric do Brasil will strengthen links with distributors and build sales channels primarily for FA equipment, and pursue sales opportunities for other Mitsubishi Electric products as well. In addition, the new company will provide Mitsubishi Electric Group companies with market information and business know-how covering matters such as taxation, labor, legal affairs, regulations and customs in Brazil.
"Brazil's rapid industrial expansion makes it an attractive market for Mitsubishi Electric," said the firm's designated president, Kazuo Kurokawa. "With our new, integrated sales company, we will work to further develop Mitsubishi Electric's presence here and thereby enrich the lives of Brazilians."
Brazil, the world's fifth largest country with a population of 191 million, and a real GDP growth rate of 7.5% in 2010 according to the IMF, is garnering attention as a fast-growing emerging market. Capital investments in manufacturing equipment are expected to help drive continued growth, spurred by major investments in infrastructure and other areas, and plans to host major international sporting events.
New Company
| Name | Mitsubishi Electric do Brasil Comércio e Serviços Ltda. |
| Location | Headquarters: São Paulo Av. Paulista, 1439, cj 74, Bela Vista, 01311-200, São Paulo Branch: Barueri Rua Jussara, 1750-Block B, Jardin Santa Cecília - Barueri São Paulo - CEP 06465-070 |
| President | Kazuo Kurokawa (planned) |
| Paid-in capital | 10.8 million real (approx. 5.3 million US dollars at exchange rate of 1 real = 0.49 USD, or approx. 420 million yen at exchange rate of 1 real = 39 yen) |
| Ownership | Mitsubishi Electric Corporation: 100% |
| Registration | September 19, 2012 |
| Start-up (plan) | October 1, 2012 |
| Business | 1. FA equipment sales and service 2. After-sales servicing of electrical equipment at power and industrial plants 3. Brazil market research (including legal, tax, and labor matters) |
| Employees | Approximately 30 |