In one of the world’s fastest growing economies, the race for market leadership is tough. Performance must be prioritized and companies need reliable and specialized production machinery to stay in the game. Based in Brazil’s financial capital, São Paulo, Evacon produces a complete line of industrial equipment used in the nation’s largest industries such as the mining, chemical, petrochemical, food, automotive and construction sectors. The company’s specialized engineering department develops products that address clients’ specific needs. The cooling systems, transportation equipment and pressure vessels can be produced exclusively or in series.
DIVERSE PRODUCT DIVISIONS
“Our products are divided into four areas,” explains Guittis. “The two original lines are transport and cooling equipment. Five years ago, we began manufacturing pressure vessels and more recently began importing specialized products from Europe.”
As Guittis indicates, Evacon designs and develops technology. Currently, the two original product lines comprise 40 percent of sales and 10 percent of the latest lines, respectively. Business emphasis is directed by market needs and client satisfaction.
The cooling equipment line includes condensers, separators, oil reservoirs, vertical and horizontal liquid reservoirs and heat exchangers. These are used in air conditioning systems, industrial refrigeration and cooling processes. Equipment is manufactured in accordance with international standards, using high quality raw materials such as carbon steel with parts comprised of copper and aluminum. Product quality and efficiency are reflected in record sales and an increasing number of clients across a range of industries. “Recent market surveys show that Evacon is the Brazilian market leader in the production of refrigeration systems,” confirms Guittis.
The line of conveyor belts and rollers for the transport of goods is extremely varied and is application dependant. Evacon manufactures rollers and belts in a range of shapes, sizes and materials (from polypropylene and rubber to steel). The physical characteristics of the clients’ products determine the exact specifications of the transport machinery. The company also manufactures pneumatic and hydraulic elevator equipment for heavy loads and specialized transportation machinery for diverse uses such as loading and unloading, weighing and foundry systems.
Established in 1982, Evacon has subsequently expanded its product range to serve a broad client spectrum. In 2004 the company launched its pressure vessel line, offering compressed air chambers and cylinders, which also have many industrial uses (e.g., distillation, mining, petrochemical and marine applications, as well as storage of liquefied gases).
Successful collaboration with principals in many different market sectors contributed to Evacon’s 28 years of success. As Evacon doesn’t focus on an individual industry, no single product represents the majority of sales. In fact, the company continually strives to maintain this carefully developed balance to sustain marketplace stability. The fourth imported product division arose in response to the specific needs of clients, and it further broadened the variety of offerings. In Brazil, Evacon is the exclusive distributor of heat exchangers made by SWEP in Sweden, oil coolers manufactured by the Italian company EMMEGI, and SONDEX gasket heat exchangers produced in Denmark. The potential of the European technology represents an important business opportunity for Evacon. Indeed, the company’s future plans include developing this range. “Investment is currently being directed at the latest two division of the company in order to increase business from these sectors,” Guittis explains.
Along with distributing the importance more equally between the divisions, the investment will increase the company’s annual revenue to an anticipated $18 million in 2010. This figure not only represents a 25-percent sales increase over 2009 figures, but it’s also in accordance with Evacon’s growth history, which has averaged between 20 and 25 percent per year since 2002.
The company’s significant growth resulted in four location moves in the last 27 years. The current 5,000-square-meter factory (located in Diadema, São Paulo) opened in 2005 and is already becoming too small for Evacon’s fast-growing business. As such, the company is constructing a new facility that should be up and running by 2011. Also located in São Paulo state, this plant-in-progress will encompass 30,000 square meters.
New products and new infrastructure are not the only focal points of company spending. Evacon also realizes the importance of its existing leading products. “At the moment we are in the process of re-engineering our product ranges and we estimate that in a year’s time we will have remodeled and improved all of them,” says Guittis.
STAYING AHEAD OF COMPETITORS
While the sector involved with internal transport of goods has reached market saturation, Evacon is arguably in the second or third position, and the company’s various models constantly rank high in Brazil’s top product lists, which are published each year by Nei, a national industry magazine. But the technology the company designs and produces is by no means Evacon’s greatest differentiator. Guittis explains: “Our superior quality, competitive pricing strategy, delivery times and customer service provided us with our leadership position.”
All of the company’s 210 employees function as a team to offer customers high-quality innovative products and excellent service. Also, as the enterprise remains constantly cognizant of all market elements, Evacon sends its executives to international trade fairs in Europe and the United States. This helps the company keep its standards in line with international products. By developing a clear, coherent strategy to maintain market leadership, Evacon overcame repercussions resulting from the recent financial crisis. “Our sales were affected by the international market crash, but importing new products and finding new niche markets soon helped us to resume our growth,” says Guittis.
Indeed, in 2009, sales returned in full force, with cooling systems picking up in March and the transportation and pressure vessel lines regaining their former growth rates in September.
Ever conscious of the changing needs in a competitive market, Evacon is continually diversifying production to guarantee its continued success, offering efficient equipment that facilitates processes for various industries. By 2011, the company aims to consolidate all of its new products in the Brazilian market, balance business between the four sectors, and move into its new facility. As sales are heating up, Evacon looks to the future with cool confidence.