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From Value One, Summer 2015 No. 49
Metal One Shibaura Brasil Ltda. (Brazil)
Capturing Plate Demand and Expanding Business in the Brazilian Market
Full-scale Operation Commenced in August 2014
Metal One Shibaura Brasil (hereinafter MOSB) was established in June 2013 to capture demand for steel plate and expand operating revenue in the Brazilian market, which has high growth potential. MOSB is Metal One's fourth overseas plate melt-cutting base and the first joint venture company with the Shibaura Group. We started limited operations in April 2014 and commenced full-scale operations in August 2014.
The plant is located in Distrito Industrial II of Capivari, located about 140 kilometers to the northwest of São Paulo. Capivari is a small city with a population of about fifty thousand people, and no Japanese company had started business here before. However, Metal One decided to expand here because the city government was offering free land leasing and preferential tax treatment as part of their policy to attract businesses. There was also a logistical advantage due to the presence of famous construction machinery manufacturers such as Caterpillar, Deere-Hitachi Màquinas de Construção do Brasil, Komatsu, Volvo and CNH in the vicinity of the city.
Outside the plant

The Path to Commencing Operations
Since this was the first time Metal One had established a corporation from scratch in Brazil, there were a lot of challenges and difficulties before commencing operations.
At the time Metal One signed the land lease agreement we were the first company to enter Distrito Industrial II of Capivari, so the area was nearly empty and had very limited infrastructure. The development of the infrastructure required to operate a business—such as water, electricity, telephone, Internet service and sewage treatment—did not progress smoothly, and negotiations with the contractors continued over a prolonged period. Electricity was still not available when we started up operations in April, so we temporarily rented generators. We obtained electricity a couple of days before the August 2014 opening ceremony.
Inside the plant

Laser cutter

 

The First Year
Although we faced many challenges, we were able to open the factory in a short period of time. MOSB's management structure—which ensures strict observance of delivery time and quality—has led to higher expectations from customers.
Our production and sales volume have gradually increased in the year since full operations commenced, but we still face various issues every day. However, compared to our initial problems, these issues are directly related to our business and I feel that every time we solve one, our company and employees steadily grow. For this growth to lead to results, I hope to move forward one step at a time with our staff.


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