BRICS–States–Boom Challenges the International Valves and Fittings Industry

Related Vendors

TURCK GmbH

TRM Filter d.o.o.

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Messe Düsseldorf GmbH

How to Overcome the Trade Barrier

However, existing trade barriers with Brazil have to be overcome. “The country is still rather closed to foreign trade and competition,” reports Appelberg. Bomafa has adapted its strategy by joinging hands with a local partner.

Thus, companies should not be scared by various obstacles lying in their way. Petrobas, a semi-public Brazilian multinational energy corporation, is also hoping to entice foreign companies. Petrobas recently visited Hamburg with its road show, together with Rio de Janeiro’s chamber of commerce. Both entities wanted to inform companies of the potential offered by the Brazilian market and its legal framework.

Russia – the El Dorado for Oil and Gas

Even though Russia can be compared to being the El Dorado for oil and gas, there are numerous plants that still stem from the era of the Soviet Union. Some need to be modernized, while some replaced. This provides a unique opportunity for German valve makers. The German office of the Chamber of Industry and Commerce of the Russian Federation have stated that recent years show that demand has been growing in double digits since 2002.

Despite having a rather strong valve industry of its own, Russia satisfies a large part of its demand through imports. And of those imported a majority of the valves are from Germany This is reflected in the figures of the German Federal Statistical Office. In the first half of 2012, exports grew 26 per cent— by the middle of this year, the volume hit €109 million.

Siemens Invests in Energy Market

Siemens and its partners are investing around one billion euro in Russia. The major part of planned investments with a volume of 700 million euro will flow towards the energy market, of which 400 million euro will be invested in new plants for efficient gas turbines and in services, whereas 120 million euro will be used to create a new manufacturing facility for wind energy plants and propeller blades.

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