Artecola starts production in China in June

Artecola chemistry, industrial laminates and adhesives manufacturer based in Campo Bom, in the metropolitan region of Porto Alegre, puts in operation between the end of June and beginning of July, in China, a joint venture with tawianesa Artesol Orisol. The unit is being installed in Dongguan city, in the southwest of the country, and will produce powder adhesives to the footwear industry in the region.
The company will have 50% of participation of each partner and will require investments of just $ 2 million because it is in the same industrial area of Orisol, which produces equipment for the footwear industry. The stickers and the machines for application of the product will be sold in conjunction with local clients, explained the Group's Executive Chairman, Eduardo Artecola Kunst.
As the entrepreneur, Artecola and Orisol of Brazil, which also operates in Campo Bom, developed the new adhesive and the application equipment. The Brazilian market launch took place at the end of 2012 and more than 40 production lines of footwear in Brazil already use the glue system, said Kunst, without revealing the customers nor the investment made in the project in the last five years.
Despite the low initial investment, plans for Artesol are ambitious. According to Kunst, the operation has the potential to represent around 10% of Group revenue in 2015, as the Southeast Asia is the biggest world footwear production hub. "The speed of growth there will be much bigger than here [in Brazil]," said the entrepreneur.
Formed by MVC enterprises, which produces engineering plastics, and Arteflex, manufacturer of personal protective equipment, the Artecola group has factories in Brazil, Argentina, Chile, Peru, Colombia and Mexico. In 2012, it consolidated net revenues of R $ 496 million, with high of 15.4% on 2011, and 2013 is expected to reach $ 650 million.
Without revealing volumes, Kunst said the Chinese joint venture will operate with an installed capacity five times greater than its own line of powder adhesive Artecola chemistry in Campo Bom, who still can double the quantities manufactured to run on three shifts.
According to the businessman, a few lines of footwear production in China are already using the new system as a test, with product and equipment sent from Brazil. The process has an international patent and, when operating, the Artesol will receive the pre-mix of the adhesive supplied by the Artecola, while the machines will be manufactured locally by Orisol.