August 26, 2012 Success Under the Belt

Volume 15 | Issue 3

With a 40 percent domestic market share, the Parcan Group is Brazil’s leading manufacturer of rollers and pulleys for heavy duty belt convey

Conveyor systems quite literally move industry. Fast and effective handling machinery that moves material from one location to another and can be manufactured to suit specific needs, conveyors are an integral part of many market sectors. Flexible engineering allows vertical, horizontal, belt, chain and roller conveyors for products as varied as rocks and minerals to food and packaging.
Due to the efficiency of these transport mechanisms, they are popular for movement of heavy goods. Brazil’s growing mining and steel industries rely on robust and resistant conveyor systems that can bear the weight of heavy, bulky products and successfully transport tons of commodities every day. The Parcan Group, the country’s largest producer of conveyor system components can certainly take the strain.

MOVING PARTS
Parcan manufactures rollers and pulleys for conveyor systems. A system consists of two or more pulleys, which power the moving belt. Made from steel plates and steel axles for high resistance, Parcan’s pulleys have the capacity to drive powerful transport systems.

The company also produces rollers from 400-millimeter to 2,400-millimeter belt conveyors. The rollers are made of steel tubing coated in rubber or in rubber rings. Mounted on a frame, they can be angled to suit the needs of the conveyor system they support. “The precision of the axle bearings and the ease of rotation of the rollers make them durable and highly accurate,” explains Marketing Manager Eduardo Videla.

Together the two main products and their variations are the support and strength behind modern conveyor systems and Parcan’s attention to quality and durability makes the company the market leader for heavy duty pulleys and rollers. “Most factories use conveyor systems, but our robust and reliable technology means that our products are more commonly used for load-bearing transport, such as in mines, steelworks and cement production,” Videla adds.

The strength of Parcan’s parts is not the only advantage the company presents, nor is it the only reason for the company’s success. “The structure of our company itself favors efficiency and reliability. We provide full technical assistance for all our components and our streamlined organization allows quick decision-making and prompt delivery. Understanding our clients’ individual needs and providing timely solutions are a strong differential of our service,” continues Videla.

It is a successful strategy for the company that makes all the right moves. In Brazil, Parcan enjoys a healthy 40 percent of the market share in pulleys and rollers and re-invests profits to grow its competitive advantage.

INDEPENDENT DEVELOPMENT
Parcan is a 100 percent Brazilian company, founded and developed with its own capital to successfully achieve its current market position. Since 1974, it has concentrated on increasing its infrastructure and production to satisfy growing demand. The first rollers were manufactured in 1979 and the first pulleys almost 20 years later in 1998. During this period, Parcan consolidated its position as a reliable manufacturer of parts and opened its main facility in Rafard, São Paulo state.

“It was in 2000 that we began developing bulk conveyor systems, and this was followed in 2001 by the automation of systems design and significant growth,” says Videla. Development of technology both in the design and production stages not only increased productivity but also speed of delivery. “We were able to invest in new machinery and in our infrastructure without the need for external financing,” emphasizes Videla.

Technology from Europe, Asia and Brazil was purchased and Parcan has even developed in-house production systems for specific products in accordance with clients’ needs.

The most recent results of the company’s constant investment are two new subsidiaries in São Luis, Maranhão and in Parauapebas in Pará, inaugurated this year. Together with the plant in Rafard, Parcan now employs a total of 600 staff. The new facilities contribute to the company’s fast delivery strategy, allowing it to be closer to its clients. “We have achieved ‘zero’ delays on our production deadlines and delivery dates,” Videla affirms.

QUALITY, CLIENTS AND COMMODITIES
“All of our products, including services, materials, equipment, projects and procedures conform to ABNT – Associação Brasileira de Norma Técnicas (Brazilian Technical Standards Association), as well as to CEMA (Conveyor Equipment Manufacturers Association) and other international industry regulations,” he continues.

Parcan also offers certificates of physical testing and chemical analysis if the customer wishes. Such certificates document the quality of the plates, castings, forgings, stainless steel and other important components, duly approved by official industry standards.

Specializing in parts for heavy bulk conveyor systems, the primary use of Parcan products is in Brazil’s booming mining industry. Supplying Brazilian mining giant Vale, which The Boston Consulting Group says has created more value than any other large firm in the world over the past decade, is testament to Parcan’s quality and service. The company also provides parts for conveyor systems in the metallurgical, cement, fertilizer and paper and cellulose industries – including companies such as Arcelor Mittal, Votorantim, Fertilizantes Serrana, and Aracruz.

“Our rollers and pulleys are capable of transporting loads of up to 22 tons a day,” confirms Videla, while explaining that Parcan is the preferred supplier for bulk commodity transportation.

Working with commodities does expose Parcan to the volatility of the market and prices. However, Videla explains that operations were not affected by recent worldwide economic crises: “Our business did not essentially change – of course we manage spending according to the industry, but nowadays fluctuations are rare.” In 38 years of successful production, Parcan has weathered the once turbulent Brazilian economy; today however the two new facilities opened this year confirm full recovery.

The Parcan Group has experienced almost 40 years of expansion that have benefitted the Brazilian bulk commodities markets and adapted international technology for belt conveyor systems to the country’s growing needs. Strategic planning and customer care have played important roles in securing some of the largest companies in Latin America, whose production relies on the durability, quality and on-time delivery ensured by Parcan.

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