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18 June 2018 | AutoData SPECIAL » INTERNATIONALIZATION came from abroad. As Sérgio Carvalho, president of the auto parts manufacturer of Caxias do Sul, reveals, “we suffer much less from the impacts of the crisis in Brazil than other companies because we diver- sify the businesses globally.” BRAZILIAN FACTORY IN CHINA Fras-le’s internationalization process began at about twenty years ago with exports to the aftermarket segment in South America and then through a part- nership with Meritor in the United States. In 2008 the company built its first factory out of Brazil, in China, totally from scratch, without local partnership. It worked so well that in November of last year the company inaugurated another unit there two times larger than the initial one. There are 15 thousand m² of built area and capacity to produce 5 million disc brake pads and 10 million heavy duty brake pads per year for the light and heavy aftermarket. And it was not even inaugurated yet and the new Chinese factory already de- manded expansion: “The initial capacity has already been taken. We are investing to expand, buying more equipment in China.” Also last year Fras-le purchased three companies in South America: Armetal and Farloc fromArgentina and the Uruguayan Fanacif. And it went even further: in India the company entered into a joint venture with ASKAutomotive, an investment of US$ 5.1 million to buy a 51% share of the supplier that attends the disputed two-wheeler segment. Carvalho represents the right man on the right mission: he joined the Randon Group after years in the United States, working at Meritor. He returned to Brazil precisely to embrace the acceleration plan of the internationalization plan. The executive observes that the com- pany, now, has well divided revenue sour- ces generated by the original equipment, replacement and export segments, as There is no longer a chance to export with a readjustment contractual term via dollar: the Chinese do not do this and the comparison is with them. well as national and international opera- tions: “We export to 107 countries.” Both executives highlight that the in- ternationalization process of their res- pective companies is still ongoing. The president of Fras-le warns: “Right now all I can say is that this process has not finished yet.” Even without industrial presence out- side Brazil Zen’s auto parts arrive at more