Iochpe-Maxion advances in the international market

With 75% of the revenue from international operations, the brazilian multinational Iochpe-Maxion, wheels and automotive components, bet on the expansion of markets around the world to continue growing in 2019. In an interview with the DCI, the President and CEO of the company, Marcos s. de Oliveira, said the scenario is positive for the next year, especially on capacity expansion and construction of new factories in markets like North America and India. "We will continue to invest in regions with potential for growth as a basic pillar for boosting the company's revenue." The Iochpe, completing 100 years of existence in 2018, has 31 factories in the world. In Brazil, are two wheels of steel; two wheels of aluminium; two structural components and two more towards the rail sector – joint ventures with American companies. " We started the internationalization process in mid-2008, which intensified in 2012 with two key acquisitions. We noticed in the back, to gain scale and not rely on the Brazilian market, it is important to produce where the demand is, "adds the Executive. The company reported consolidated net income of R $93.4 million in the third quarter this year, against a loss of R $28.7 million a year before. Cash generation, as measured by earnings before interest, taxes, depreciation and amortization (Ebitda) was R $311.9 million from July to September 2018, up 41.7 percent on the same basis of comparison. "We work to decrease the level of leverage with cost reduction. In addition, we have a natural hedge because we produce where we sell "details. In Mexico, the company is expanding the capacity of your factory and building a patterned unit with views to the North American market. In Europe, the company is also expanding its productive offer, as well as in India, where is raising a manufacturing plant of aluminium wheels. In Brazil, the Iochpe had to readjust your structure on the crisis that the automotive sector has passed in recent years. "Today, the average capacity utilization in local plants is 75%, but in aluminum wheels, for example, revolves around 90% with the growing demand for the product." The President of Brazil Iochpe says that although it is a cyclical industry, with periods of ups and downs, the automotive sector probably lived longer crisis of your 2014 to 2017. "No one imagined the magnitude of the problem," says Oliveira. Across the period of retraction, he points out that the company cut costs, worked on continuous improvement of operations – as complete use of leftover raw materials – and transfer the increase of inputs such as steel, for example. To 2019, the Executive sees the domestic market with optimism, with expectations of increased demand for light and heavy vehicles. In this scenario, the company has the optimism brought by the decree establishing the Route 2030, new industrial policy for the sector. "In our view, the most important of this approval is the predictability that the industry should have. Companies can plan for a longer period, "explains Darlington. For the medium and long term, the Iochpe is developing new technologies, like sensors to capture data on wheels. "We are working on this kind of intelligence because that is the future."