Joint venture gave speciality chemical group, Surfachem Ltd presence in Brazil
Specialty chemicals and solutions business, Surfachem Group Ltd, entered the South American market in 2014, gaining virtually instant contacts and local knowledge through a joint venture.
Surfachem Group, part of international chemicals group, 2m Holdings Ltd, created the joint venture with a well-established local business, Vitrine Química Ltda (Brazil).
The joint venture company, Surfachem Brasil Ltda, in which Surfachem Group Ltd holds a majority stake, supplies and distributes specialty chemicals to Brazil’s personal care, household care and institutional and industrial care markets.
Under the terms of the venture, Vitrine Química Ltda. Brazil Vitrine transferred all of its business activities, management and staff to the new company to provide local expertise and contacts in managing all of Surfachem’s activities in Brazil.
Surfachem decided to enter South America as part of wider global expansion to complement its growing status in the UK and Europe.
Dr Smith says: “When entering a developing market you need to recognise that the dynamics will be different and be prepared to adapt your existing business model to meet local requirements while retaining the values which have made you successful.
“It is also vital to understand the political and social environments within the chosen country and how they may effect product, labour and capital markets. You also need the right people in place in the country, including both local nationals with head office support when required.”