PORTUGAL

fD i Magaz ine i s no t respons ib le fo r the ed i to r i a l con ten t o f th i s supp lement . Wh i le i t has been p r in ted and d i s t r i bu ted a long w i th fD i , the con ten t has been p roduced by QMP a lone

GLOBAL REPORT / DECEMBER 2010 Quality Media Press

MODERN DAY PORTUGUESE EXPLORERSSET OUT ON NEW ADVENTURES

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In the golden age of European discovery,Portuguese explorers led the way in naviga-ting the treacherous Atlantic waters aroundAfrica, sailing the eastern route to Asia toopen up trade to the west and carrying outthe first circumnavigation of the world.

Modern-day Portuguese adventurersfollowing in the footsteps of compatriotsVasco de Gama and Ferdinand Magellan areonce again setting out across the globe, thistime to explore business opportunities insuch sectors as high-tech infrastructure,human resources, heavy industry, construc-tion, management and, as did their forebe-ars, trade.

No BoundariesResul Equipamentos de Energia S.A. has

just celebrated its 25th anniversary and isactive in a number of international marketsdeveloping and supplying energy, telecom-munications, transport, public lighting,renewable energy and water solutions forclients both public and private.

“Today there are no boundaries,” arguespresident Carlos Torres. “The internationalmarket can be difficult but it offers opportu-nities in areas where we are experts.”

Resul concentrates on seven main sec-tors: electrical energy distribution, gas dis-tribution networks, telecommunication net-works, lighting networks, water distributionsystems and products for renewable energythrough solar power and central heatingequipment.

In its home market, the company’sclients include all the major Portugueseelectrical energy, gas and LPG suppliers.

But Resul is also active in 25 other coun-tries and overseas business accounts for 70%of turnover which last year amounted to 28million euros. France, Spain, Belgium,Sweden, Finland, Russia, Israel, Cyprus,Macau and Libya are just a few of the com-pany’s markets.

“We are trying to enter the Middle East

and have salesmen everywhere seeking toopen up new markets. Resul has the price,quantity and quality to interest internationalclients and the developing world is one ofour targets,” he says.

Resul’s rural electrification systems arerenowned for quality and the natural marketfor this sector is found among developingcountries eager to bring their citizens intothe 21st century.

All of Europe has been completelyelectrified for many years so the companyhas focused on Africa. Along with thePortuguese-speaking countries where ithas affiliates, Resul is also active in Ghana,Nigeria, Senegal and Equatorial Guinea.

“We continue to invest in Africa wherewe are well established, we are well knownand we are a company with credibilityamong our clients because we have a deepknowledge of the continent and doingbusiness there is not always easy.

“This year, for example, we are insta-lling an entire prepayment metering

system worth for electricity consumptionin the Angolan capital of Luanda,” Torresexplains. “A South African company isdoing the hardware and Resul is doingthe software.”

European companies, he says, arefacing a major challenge from Chinesecompetitors. Therefore, Resul goes afterniche markets where it has a special kno-wledge of local conditions. “A Chinesecompany could not have handled theAngolan contract,” Torres notes.

Clearly, the company is weatheringboth the international and Portugueseeconomic crises quite well and the presi-dent boasts that in both 2008 and 2009Resul enjoyed growth. “In fact,” he states,“2009 was our best year ever and we don’texpect any downturn this year.”

Coping with crisisCrisis has slowed down but not halted

development at SetLinings InternationalS.A., a refractory installations companywhich serves industrial clients ranging fromIron & Steel, Glass making, Cement,Primary Aluminium and PetrochemicalIndustries.

“It looks like the crisis is here to stay,”says chairman José Teixeira Ribeiro. “A fewyears ago we launched an expansion stra-tegy to put ourselves among the two largest

“A CHINESE COMPANY

COULDN’T HAVE HANDLED

THE PRE-PAID METERING

SYSTEM IN ANGOLA”

MODERN-DAYPORTUGUESEEXPLORERS SETOUT ON NEWADVENTURESEXPANSION ABROAD IN HIGH

TECH, HUMAN RESOURCES,

SPECIALISED INDUSTRY,

BUSINESS MANAGEMENT

AND OTHER SECTORS

RURAL ELECTRIFICATION IN DEVELOPING COUNTRIES OPENS GREAT OPPORTUNITIES FOR PORTUGUESE COMPANIES SUCH AS RESUL

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companies worldwide in our field and we’llget there, but it will just take a little longer.”

Founded just four years ago when exe-cutives split off from a Spanish investmentcompany following a disagreement over thecompany’s future, SetLinings is currentlyinvolved in projects ranging fromReformers for TOTAL in France to aCarbon Plant for EMAL in Abu Dhabi.

There are also projects ongoing inGermany, Belgium, Norway, Ireland,Lithuania, Italy, Argentina, Poland, Libya, theUnited Arab Emirates and New Caledonia.“We are interested as well in Brazil, India,Indonesia, Algeria and Vietnam,” says thechairman.

SetLinings counts on highly-skilledPortuguese personnel to carry out its Europeancontracts using project and site managers, engi-neers, material controllers, supervisors andteam leaders, as well as the bricklayers.

“One of our competitive advantages isproductivity which comes from our emplo-yees and the Portuguese are among thehardest working, most adaptable and well-behaved nationalities you will find,”Teixeira Ribeiro explains.

As some of the company’s projects can belong term with employees away from home formany months, Set Linings has a special depart-ment which looks after the families and helpsdeal with any domestic crises which may arise.

“This is social responsibility and a com-pany that does not cherish its staff cannotpossibly succeed,” says Fernando Agostinho,human resources manager.

On international projects, SetLinings’senior staff is all Portuguese, but to be costcompetitive, the company trains and useslocal employees for the more basic jobs.

“Once our project is finished, these well-trained workers get jobs with other compa-nies in the country and we’re happy with thatas it is, again, part of our social responsibility,”Teixeira Ribeiro explains. “And if we return tothat country for another project, we have anemployee base which we can call on.”

Training, whether of Portuguese orinternational staff, has been a major reasonfor the company’s success but chief opera-ting officer José Cavaco says there are cer-tainly other factors.

“We can meet the full satisfaction of thecustomer concerning, safety, environment,quality and price within their budgets. Andthat is the added value of SetLinings: achie-

ving both their goals and ours so everyone ishappy with the finished project,” he states.

SetLinings is a model of a Portuguesecompany which is using globalisation for allit is worth and moving beyond its local mar-ket to expand. Teixeira Ribeiro says otherscan do the same.

“The Portuguese have the right attitudetowards work, the skills, the momentum,the language abilities, and a great respectfor all peoples and their cultures, to allowus to carry out projects anywhere, underany circumstances.” adds the chairman,who concludes: “We’re a good example ofwhat the Portuguese can achieve on theinternational scene”.

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etlin

ings

“WE LAUNCHED AN STRA-

TEGY TO BE ONE OF THE

LARGEST COMPANIES IN THE

SECTOR WORLDWIDE”SETLININGS WORKERS ARE SPREAD OUT IN DIFFERENT SITES AROUND THE WORLD, TAKING WITH THEM PORTUGUESE KNOW-HOW AND EXPERTISE

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A great capacityTapping into that pool of talented

Portuguese and deploying them abroad in awide range of industries at home and aroundthe world is the principal business of the tem-porary employment service Newtime.

It provides skilled personnel for themaritime, oil drilling, construction, hoteland restaurant, onshore and offshore foodmanagement, port management, and manyother sectors.

Newtime and its affiliates – GlobeCMS, IMH Manpower and OmniSucesso- are also involved in management consul-ting, outsourcing, call centres, agriculture,construction, civil engineering and logis-tics. Besides its international operations,the company has 13 offices acrossPortugal.

“I’ve held jobs all over the world fromNew York City to Tanzania and I’ve noti-ced that the Portuguese I’ve met in theseplaces have a great capacity for working inforeign environments,” says chief adminis-trator António Luz Rodrigues.

An affiliate, IMH Manpower, speciali-ses in marine services and contracts forcrews, technicians, repairmen and otherworkers to cruise liners, supply ships,container ships, general cargo ships andother vessels.

IMH also provides experienced emplo-yees for the drilling industry (drillers,derrick men, welders, electricians, rough-necks and others), naval construction andrepair (mechanics, pipe fitters, painters, car-penters, etc.) and for refinery and pipelineconstruction, maintenance, manufacturingand repair.

Newtime has just fulfilled labour con-tracts with Portuguese employees in Swedenand Norway and has around 100 working inthe Netherlands. Russia is also a major clientwhere its workers are heavily involved in thebooming petroleum industry.

“Our subsidiary Globe CMS carriesout catering and maintenance in theRussian oil fields and also in coppermining. Russia is a very exciting marketand I think that the country has the abilityto one day be a major exporter for allkinds of products,” he explains.

But Russia is a very difficult market toenter, the chief administrator warns, andNewtime used the talents and knowledgeof its general manager, a Russian nationalwith extensive work experience in Angola,to ease the company’s way into thecountry.

“One doesn’t really feel the crisis inRussia, its growth is slow but steady andthe middle class is also growing. It is avery competitive market, foreign entre-preneurs are becoming more accepted

and, contrary to popular belief, it is safe,”Luz Rodrigues says.

“Portugal, on the other hand, is in cri-sis but I believe that the economy now hasthe chance to evolve in a positive direc-tion. What we as business people have to

THE RUSSIAN OIL & GAS SECTORS IS ATTRACTING FOREIGN EXPERTS WITH THE RIGHT MIX OF EXPERIENCE AND CULTURAL SENSIBILITY

“AS BUSINESS PEOPLE WE

MUST CAST OFF OUR PRO-

VINCIALISM AND BECOME

MORE INTERNATIONAL”

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do is cast off our provincialism and beco-me more international, and at the sametime the government must offer moreincentives for investment,” he concludes.

DiversificationSeeking new sectors was the path to

success chosen by another Portuguesecompany, Garça Capital, whose mainbusiness of trading in cement, clinker andcement manufacturing additives sufferedwith the collapse of the once-boomingconstruction sector in neighbouringSpain.

“What we did was to diversify and notjust in raw materials but by also by imple-menting new opportunities in the field ofconsultancy and by establishing verticalintegration regarding production,” saysmanager Ricardo Mella.

Garça Capital ships several milliontonnes of cement and related materialseach year throughout Europe and theMediterranean region as well as to mar-kets in South East Asia, the Middle Eastand Africa.

“We’re also now looking at SouthAmerica which is a very strong market,not only in Brazil but in all the othercountries, too. And we’re established inAfrica where there is a real need or deve-lopment, there is little or no local produc-tion and the lack of infrastructure meanscement and related products have a realfuture,” he states.

Garça Capital’s most interesting mar-kets, the manager says, are Algeria andTunisia, two countries with high demandbut no local production to speak of.Namibia also has potential, not as a pur-chaser because the market is small, butrather as a distribution base for surroun-ding countries.

Besides cement and consultancy servi-ces, the Lisbon-based company is alsoactive in shipping through dealing withowners and operators of dry bulk vessels,and it is a partner in the solar energy con-

cern, Sino Star, which manufactures bothphotovoltaic and thermal products.

Garça Capital is counting on its busi-ness spread to see it through the currenthard times which Mella says he believeswill not end any time soon.

“The crisis is much more noticeablenow than in 2008 and only those compa-nies which had some working capitalhave been able to survive,” he says. “Ibelieve the crisis will get worse before itgets better.”

LISBON IS STRATEGICALLY POSITIONED AND CULTURALLY READY TO BECOME A BUSINESS HUB THAT CONNECTS EUROPE, AFRICA AND AMERICA

“THE CRISIS IS MUCH

MORE NOTICEABLE NOW

THAN IN 2008 AND ONLY

THOSE COMPANIES WHICH

HAD SOME WORKING

CAPITAL HAVE BEEN ABLE

TO SURVIVE”

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How would describe the current situa-tion in world trade?

R.M.- I’d say that the big difference betweentoday and the end of 2008 is that the crisis hassettled in, and many of the players either wentbankrupted or changed their course. Those whohad the capacity to survive are still working. Thecurrent crisis is much more noticeable than in2008, so only the companies that had enoughworking capital managed to survive.

How is the trading of raw materials forGarça Capital going in 2010?

R.M.- Things are going ahead fine, we arecompleting some projects that we started in2009 and are due to finsh in 2011. We feel adrop specially as the market of our main cus-tomer, Spain, has plunged, so we have diversi-fied our markets, not only in terms of tradingof raw materials, but also by implementing anew line of work in the area of consultancy.Regarding the fall in prices we have optimisedthe transport costs and adjusted our margins.The main markets for us used to be mainlyEuropean, but now they are mostly Asian,African and South American.

Why are you working on the AfricanCoast, in particular?

R.M.- Because it is an area that needs todevelop, they do not have means of productionor infrastructure. Namibia for instance is avery stable country, with a population of onlytwo million, so just for Namibia it is difficultto think about projects aimed only the domes-tic market, there must always be a componentthat relates to its neighbouring markets.

A bit closer to us, the markets that we findinteresting are Tunisia and Algeria. Moroccois in a different platform; it is a very contro-lled market. Algeria has an enormous con-sumption; they are importing a lot as there’s adeficit in domestic production. In Tunisia weare collaborating in several projects, such asthe one with the Cement Company Gafsa, in acity about 250 miles from the capital. Thisproject, called CMG, SA - Ciment de laMéditerranée,S.A. - is very important forGarça Capital, as it should allow a strengthe-ning in the supply of raw materials, while itcontributes strongly to the development of

Tunisia, allowing the country to enter thecement market as an exporter.

Then there is the whole western coast ofAngola, Namibia and all the francophonecountries with a great lack of infrastructurewhich hinder the entrance of raw materials.

Do you believe that China will stopbeing the big economic locomotive of theworld in the future?

R.M.- I do not think so, I do not want tofool myself but when China, amidst a worldcrisis, is growing at 10%... China is doing verywell, it has at least another twenty years ofdevelopment ahead. China will continue mar-ching on, yet I think China has changed itsstrategy. Lately we have been having severalcontacts with some government-owned enti-ties, such as CNBM, which is a major cons-tructor. What we see happening is that finallythe Chinese government is realising that itscompanies are giants without an internationalvoice, yet we see a great Chinese presence inmarkets such cement, mining, maritime trans-port, agriculture. I believe that China willcontinue to pull the world economy, but in adifferent manner, taking stakes in countriesand business in which they are interested, clo-sing that way the loop on themselves.

Where do you see the main opportuni-ties for Portugal?

R.M.- I believe that both Portugal and Spainhave somehow forgotten their history. We togetherdominated the world five hundred years ago, andalthough we are small countries we still have aconsiderable influence, we speak the second andfifth most spoken languages worldwide. Portugalstill has some impressive contacts and a prestige inplaces that value the history of the country, and Ithink we could take advantage of that. Howeverwith the current crisis I foresee a difficult future, Iam not too optimistic on the chances of thePortuguese society to overtake this crisis easily.

How do you see the future of GarçaCapital? Will you continue working both intrading and consultancy?

R.M.- We started our strategy two yearsago in these two parallel ways, one of themwas diversifying into consultancy, the other ismaking a vertical integration with the meansof production.

We have two very important projects, oneis the project in Tunisia with the cement makerGafsa, and the other is a very strong partners-hip with a German company in Namibia. Wehope to reach the whole western African coastand perhaps go to as far as Brazil.

So I believe that 2011 will be much betterfor us than 2009 or 2010. Globally, I believethat it is going to be a very difficult year forPortugal and for many European countries.

Interview with Ricardo MellaManager of Garça Capital

A new focus on the developing world accompanied by a new line of consultancy has madethe Libon-based company Garça Capital move into a higher gear. New and exciting pro-jects in Tunisia -together with the cement maker Gafsa- and Namibia -with a german part-ner- mean that the Portuguese company has vaccined itself against the European crisis

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o: G

arça

cap

ital“THE MAIN MARKETS FOR US USED TO BE MAINLY

EUROPEAN, NOW THEY ARE MOSTLY ASIAN, AFRICAN AND

SOUTH AMERICAN”

THE PORT OF LISBON IS LOSING RELATIVE IMPORTANCE AS EUROPE´S ECONOMY REMAINS WEAK AND THE DEVELOPING ECONOMIES SURGE AHEAD

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The international competitiveness that yourcompanies boast come from the technical profi-ciency of the workers that you send abroad?

A.L.R.- Precisely. We have about a hundredworkers in the Netherlands, down from two hun-dred, because of the crisis. We are starting withSweden as well as with Norway. Yet in Spain ourexperience was not too good, they were difficul-ties with payment collection, the truth is Spanishcompanies pay late. In the case of Spain we wereworking with temporary work firms.

How is your experience in Russia?A.L.R.- I believe that today Russia, because

of the way its economy is developing, is about tobecome a major exporter in just about every-

thing. Russia has a low cost labour, as much rawmaterials as anybody else ... In Russia we areinvolved currently in the catering and mainte-nance business.

You started in Russia in the Oil Sector...A.L.R.- Yes, but now we are working in the

whole economy, and we have made some agree-ments with some departments in the government.What I see in Russia is growth, I do not feel anycrisis there. Russia has been growing steadily,which gives a us a great security. Today Moscowis a very safe city, and we see how the middle-class is growing. The market is becoming verycompetitive, I have also noticed that foreign entre-preneurs are more welcomed, be them American

or German, which have been very skilled and noware the most influential in the country.

What would you say is your formula forsuccess in your different companies?

A.L.R.- During the Portuguese revolution ofApril 25th, I was finance director in a hotelmanaging company, so I was fired.... I went towork in France, Brazil, New York, Tanzania,Hong-Kong, all over the world. Against whatmany think, Portuguese people have a greatendurance capacity when outside their country.Portuguese workers do work extremely hard. Theonly exception is when working in Russia I preferRomanian, Polish, Czech....Why? Because thePortuguese expats can be expensive.

Interview with António Luz RodriguesManager of Newtime, Globe CMS, IMH Manpower and OmniSucesso

Providing foreign workers in countries as diverse as Russia, Netherlands or Sweden,António Luz Rodrigues and his group of companies continue proving that Portuguesetechnical expertise can succeed in just about any social and economic environment

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o: N

EWTI

ME

“WHAT I SEE IN RUSSIA TODAY IS

GROWTH, I DO NOT FEEL ANY CRISIS

THERE. TODAY MOSCOW IS A SAFE CITY,

AND THE MIDDLE CLASS IS GROWING”

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How´s the internationalisation project ofTorrestir coming along?

F.T.- In Angola we are launching a projectthat will be operational in the beginning of 2011.We have a new project in Brazil that should alsoget going in 2011, through the acquisition of acompany in São Paolo with a subsidiary in PortoAlegre, so it is a large project.

In Angola are you working with any partners?F.T.- We are in partnership with an Angolan

company.

In which other markets are you currentlyworking?

F.T.- Spain and Germany. The other projectsthat we are running are mostly Portuguese ones.

Do you believe that Portuguese transportand logistics companies can survive on thelocal market alone?

F.T.- No, the future of transport and logis-tics companies must necessarily pass thoroughthe internationalisation to various Europeancountries.

What would you mention as the mainchallenges of working in Angola?

F.T.- We have been working on this projectfor two years now, it is not easy but all should be

ready by the end of this year to start operating in2011. We are slowly growing in the logistics area,as the Angola market has a clear need for moreoperators.

Why was Brazil also chosen?F.T.- Brazil has been having an accelerated

growth in the last ten years, in the first semesterof 2010 the annual growth was 8.8%.... ThePortuguese know-how is very adaptable to theBrazilian case, so it is very interesting to make abet on Brazil.

How is the Portuguese market forTorrestir this year?

F.T.- On the domestic market, Torrestir hasbeen growing at nearly 11 % in 2010.

What have been the key factors thatexplain this performance in a difficult year?

F.T.- The quality of the service that we pro-vide, we are a not a company that competes onprice but rather on quality.

Are the Portuguese and the foreign mar-kets willing to pay the price of quality intransport ands logistics?

F.T.- Quality can be sold long-term. Today,clients themselves do not look only for price butmostly for quality.

In wich sectors are you growing the most? F.T.- In the pharmaceutical sector we have

had an accelerated growth, through a companycreated especially for it called Torrespharma.We have also grown in the logistics and ware-housing areas, as in January 2009 we created acompany called Torreslog. That company excee-ded our most optimistic expectations, we willclose our first year of operations with a turnoverof over four million euros. I believe that with ourknow-how developed in Portugal, we can growvery strongly in Angola and Brazil also.

What is your main objective for he nextthree or four years?

F.T.- Our main goal would be to achieve60 % of our sales in markets other thanEurope. Torrestir has been growing steadily atdouble digits over several years, and we intendto maintain this rate. In four years I think wewill have grown at least by 40 %.

Would you consider then Torrestir to bealready an international operator?

F.T.- Yes, as we will be in Portugal and thementioned markets.

Would you say that the transport andlogistics sector in Portugal still behaves in atraditional way?

F.T.- It still operates in a traditional man-ner, but also a natural selection of companies istaking place, separating to most capable onesfrom the others. That’s the reason of our growth,not because the market has grown, but becausemany companies have closed down.

Would you say that in Portugal the trans-port and logistic sector boast an internatio-nal quality?

F.T.- Yes, I do not see any difference withother countries.

Interview with Fernando TorresPresident of Torrestir

With a stellar performance in its home Portuguese market, transport and logistics ope-rator Torrestir is banking on its locally acquired know-how to conquer new markets.Angola and Brazil operations are already under way to become the key markets for thefuture of the ambitious Braga-based company

“OUR MAIN GOAL WOULD

BE TO ACHIEVE 60% OF

OUR SALES IN MARKETS

OTHER THAN EUROPE”

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orre

stir

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Has Resul been affected by the current eco-nomic crises?

C.T.- To the contrary, 2008 was an excellentyear for Resul and 2009 was the best year in thehistory of the company, which is 28 years old. 2010will not be better than 2009, it is turning out to bean average year.

In 2010 will you keep the same level of sales? C.T.- Yes, compared to 2009 this year we will

not grow much. In fact in 2008 and 2009 we expe-rienced a large growth, we managed to increase ourturnover by 18%. I’d like to point out that by thelowest point of the crisis we barely felt it, and in thatyear me made heavy investments. We invested hea-vily in new facilities, we bought in a Spanish subsi-diary in Portugal and we acquired a company thatproduces electric equipment in Mozambique. Theseare the three points I want to stress.

Would you say that the Portuguese langua-ge is a competitive advantage in markets suchas Mozambique?

C.T.- Obviously it is, but even more so is thefact that we have a great accumulated experienceof working in Africa. Resul has been exporting toAfrica for 27 years. I believe knowing how to opera-

te in Africa is a great advantage for this company.

What kind of business culture Resul needs tosell in countries as diverse as Angola and Finland?

C.T.- I think that all comes down to versatilityand imagination. Resul is a very particular com-pany; formally we are a commercial company yetwe are backed by three production companies. Ourthree associated factories behave in an autonomousmanner, they are independent entities. And Resul byvirtue of being purely commercial is extremely versa-tile, because what we sell in Finland has nothing todo with what we sell in Angola.

According to your experience, the humancontact is still important in your business?

C.T.- Yes, outside Europe is still very impor-tant, in Europe we have a different way to do busi-ness, people are not available to go for dinner withcustomers, in Europe this culture is gone, but outsi-de Europe one can still find it.

Where do you see the future marketopportunities for Resul?

C.T.- The core business of Resul is offeringproducts for rural electrification. Our target mar-kets will always be developing markets, markets

where there’s still a lot to do regarding electrifica-tion. Obviously we will continue to make a hugebet on Africa, where we are well positioned andwe are known as a credible company. In Angola,for instance, next year we are going to be imple-menting a whole pre-paid metering system for theelectric supply of Luanda. This is not an easychallenge yet it is very enticing.

Can Portugal be competitive on the inter-national scene?

C.T.- I’d be troubled if I didn’t believe so, I dobelieve it can! I do recognize that we are living aslightly depressing moment in Europe, and it is evi-dent that Portugal, with a weak economy is theweakest link in the chain. But we have to believe toturn things around, and I am a very optimistic per-son. As I said things have not been running badlyfor us in this time of crises, and I believe that everycrisis opens windows of opportunity, one just has toknow how to take advantage of them.

Interview with Carlos Torres President of Resul - EQUIPAMENTOS DE ENERGÍA SA

There seems to be no crisis for Resul, which has been growing in diverse internationalmarkets depite the apparent gloom in the world economy. As a major exporter of electri-cal equipment for rural electrification, the Lisbon-based company sees the world as apla-ce full of opportunities for growth

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os: R

ESUL

“I THINK THAT OUR BUSI-

NESS CULTURE COMES

DOWN TO VERSATILITY

AND IMAGINATION”

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As a small, seafaring nation, Portugal hasalways looked abroad for trading opportunitiesdating back to the days when it was ruled fromRome and local food products and metals wereshipped to markets across the empire.

Later, Portugal’s own imperial ambitionssent its explorers and merchants to LatinAmerica, Africa, Asia and beyond, and forcenturies the country’s port wine became oneof its best-known products, appreciatedaround the world.

These days, Portuguese exports includecutting-edge technology, world-class manu-factured goods, machinery, transport equip-ment, chemical products, processed food andmuch, much more.

Portugal’s chief export markets now areits fellow European Union member stateswith Spain, Germany, France and the UnitedKingdom heading the list, but Portugueseproducts can be found all over the world andthe list of eager customers continues to grow.

Between 2003 and 2009, the value ofPortuguese goods sold abroad increased by anaverage of 14% each year to 40.4 billion euros.And while exports are expected to fall this yeardue to the world’s ongoing economic woes,businesses are globalising at a furious pace inexpectation of better times ahead.

The Key to Success: Less CompetitionOne such Portuguese-based company,

Tensai Indústria, manufactures horizontal andvertical freezers and freezer components for thehospitality industry and has just inaugurated a

new, 30,000-square-meter plant in Estarreja foran investment of 22.6 million euros.

Tensai executives say the state-of-the-artfacility has a production capacity of 650,000units a year which will help the company fillits orders from customers in 30 countries forproducts aimed at a highly-specialised nichemarket.

Quite a step for a company which beganas a distributor of cold storage equipment,mostly in Spain and Portugal. When its chiefsuppliers, the big Japanese and South Koreanbrands, started to set up their own factoriesin Europe, Tensai saw the writing on the walland turned to production.

“When we decided to manufactureappliances, we looked for products which thelarge multinationals were not interested inbecause the demand is not so great,” explainsTensai president João Preto. “And we knewthat, in this sector, we would find less compe-tition in these niche markets and therefore besuccessful.”

Globalisation created another break forthe company when several European compe-titors shut down and relocated to countries in

the east where labour and other operatingcosts were lower.

“Their departure opened up a fantasticopportunity for us and we now have thelicenses for Whirlpool and Fagor in Spainwhere we are the market leader, and forBrandt in France and Italy,” he says.

Other important markets include theMiddle East, the Caribbean and Africa, allregions where cold storage is vital and custo-mers are looking for the very best appliancesat the very best price. “Saudi Arabia is ourbiggest customer among the Arab countriesand, of course, Dubai is also important.”

In its international expansion, Tensai cre-ated subsidiaries in former Portuguese colo-nies in Africa such as Angola where its com-pany has a 60% market share and has alsoexpanded into Mozambique where plans callfor another factory to soon be completed forsupplying customers in the countries in theSouthern African Development Community.

And while globalisation has given Tensaithe chance to expand internationally, it has

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o: T

ENSA

I

“WE HAVE FOUND AREAS

IN WICH WE CAN BEAT

THE CHINESE: NICHE MAR-

KETS, FLEXIBILITY, AND

FAST TURNAROUND”

“MADE INPORTUGAL”MAKES ITS MARKTHREE VIBRANT COMPANIES

FOLLOW A LONG TRADITION

OF SEEKING NEW CUSTOMERS

ABROAD

João PretoPresidentTENSAI INDÚSTRIA S.A.

TENSAI INDÚSTRIA´S RECENTLY BUILT STATE-OF-THE-ART FACTORY IN AVEIRO, IN NORTHERN PORTUGAL

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also taught the company some important les-sons, particularly regarding rivals from chea-per producing countries such as China andTurkey.

“I cannot in any way compete with a pro-duct made in China where people earn asalary 30 to 40 times lower than in Europe,”Preto argues. “So we found areas in which wecan beat the Chinese and others: niche mar-kets, flexibility and fast turnaround.”

Within minutes, technicians at Tensai’shighly-automated plant can set up productionruns of five units, 5,000 units or whatevernumber the client requires thanks to speciali-sed equipment. Other advantages include deli-very times measured in days instead of inmonths and better prices thanks to Portugal’slow manpower and transport costs.

These factors have helped the companyconfidently predict a doubling of its turnoverby the end of 2012 to between 90 million and100 million euros as exports take off. “I cansincerely say that what you need in business isclear ideas and clear objectives,” Pretoexplains.

An International Commitment Firmly established as a major Portuguese

exporter, Respol Resinas S.A. is the leadingEuropean manufacturer of gum rosin deriva-tives for printing inks, receiving 99.9% of itsturnover from sales abroad.

“Our main markets are Spain, France, theUnited Kingdom, Germany, and theNetherlands, and we also export to SaudiArabia, countries in North Africa and others,”says chairman Manuel B. Costa. “Respol’srecipe for success is excellence in quality pro-ducts and ensuring on-time delivery. OurEuropean customers can request an orderand receive it in two days.”

Recently, Respol deepened its internatio-nal commitment by purchasing French mul-tinational Cray Valley’s gum rosin businesswhich added a whole range of widely-knownbrands such as Tergum, Tertac, Terfenol,Tergraf and Resisol to multiply its global cus-tomer base.

“Regarding clients, the internationalmarket situation is stable, but the cost ofraw materials has tripled. However, con-sumption is strong and our productioncapacity of 40,000 tonnes is almost at itslimit,” he adds.

Located in the central Portuguese city ofLeiria which is well connected by highways,Respol´s factory is ideally located for easyaccess to Europe for deliveries as well as forreceiving its raw materials sourced fromother European countries as well as fromChina and Brazil.

“In Brazil, Respol has a joint-venture withResinas Brasil for the production of resins forprinting inks. Through this company, Respol-

RB Lda, we are therefore present on the prin-ting ink markets of Brazil, South America andNorth America,” Costa explains.

Respol’s’ turnover this year shouldreach a healthy 60 million euros, puttingthe company on the path of soon achievingits goal of becoming the largest gum rosinderivatives producer in the world, thechairman says.

“This is also due to the heavy investmentswe have done in new technology . Our staff isalso highly qaulified with 30% of our 85 emplo-yees holding engineering degrees,” Costa says.

Many of the research and developmentstaff are engaged in discovering sustainableand ecologically safe products as well as ensu-ring the company reduces possibly harmfulemissions into the surrounding environment.

“OUR EUROPEAN CUSTO-

MERS CAN REQUEST AN

ORDER AND RECEIVE IT IN

TWO DAYS”

Manuel B. CostaChairmanRESPOL Resinas, SA

GUM RESIN IS A NATURAL PRODUCT FROM PINE TREE WHICH IS AN ESSENTIAL RAW MATERIAL FOR PRINTING INKS

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“It is hard work to move forward but weare certainly optimistic about boosting ourproduction, welcoming additional customersand achieving greater profits, so the futurelooks very bright indeed,” the chairman says.

The Star PerformerAnother Portuguese company transfor-

ming natural resources into valuable exportsis Ramirez & Cª (Filhos), S.A., a family busi-ness which is one of the world leaders in can-ned fish, especially sardines and related pro-ducts, and is enjoying continued growth des-pite the economic slowdown.

“We’ve been growing year after year andin 2008 our exports were up by 51% while lastyear we kept growing. It looks like 2010 isgoing the same way,” says president ManuelG. Ramirez whose great-grandfather startedthe company in the 19th century.

“This company is 157 years old, the oldestcanning business in the world, and we’vebeen through the Great Depression, severalwars and a couple of revolutions. We’ve sur-vived thanks to the global recognition of ourbrands and incorporating others throughacquisitions,” he explains.

More than 50% of production is expor-ted. Along with the Ramirez and Cocagnebrands available in Portugal and Portuguese-speaking African countries, the companyproduces another dozen brands such asTome, Gabriel, The Queen of the Coast, andMistral, for specific markets ranging fromJapan and the Philippines to the Middle East,Francophone countries, Africa, the Americasand to most of the EU countries.

Products include tuna fish, mackerel, octo-pus, cod and squid as well as canned, ready-made meals combining fish with vegetables,beans and chick peas. But sardines are, andhave always been, Ramirez’ star performer.

“Sardines are still Portugal’s biggestcommodity and boasts outstanding qua-lity,” says the company president. “We stri-ve for excellence at all levels and that’s whywe export our brands to 45 foreign mar-kets and enjoy the confidence of big inter-

national retail food chains.” To prove thispoint, early in 2010 Ramirez sardines wereMSC certified, assuring the sustainabilityof their catch.

Ensuring that quality means strict controlof production, food safety, traceability andEuropean Union certification. Ramirez’ can-ned goods also have the stamp of approvalfrom the U.S. Food and Drug Administration,the Canadian Fisheries Department and theSouth Africa Bureau of Standards.

“We’re taking further steps towardsmodernisation such as using state-of-the-artartificial intelligence to enhance control

throughout the production process and Ibelieve we are the first company in the sec-tor to use robotics in our plants,” he says.

But any successful business must alsohave top personnel and to that end Ramirezcarries out intensive training programmes atall levels. “We have middle and senior mana-gement people well prepared in computerand English-language skills imparting theirknowledge to workers in all departments,”Ramirez explains.

“Portugal is in crisis so we need to crea-te new industrial parameters for a new eco-nomic future,” he concludes.

Manuel G. RamirezPresidentRAMIREZ & Cª (FILHOS), S.A.

“WE HAVE BEEN GROWIG

YEAR AFTER YEAR, IN 2008

OUR EXPORTS WERE UP BY

51% WHILE LAST YEAR WE

KEPT GROWING” Phot

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CONSERVAS RAMIREZ IS THE OLDEST FISH CANNING COMPANY IN THE WORLD, WITH NEARLY 160 YEARS OF HISTORY

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How did Eurocabos enter its first inter-national market, the Spanish market?

J.B.A.- We started in Portugal 24 years agoand we started working the Spanish market 15years ago. There we grew continuously until2009, in every corner with the exception of thecentral area of Madrid. We started inCatalonia, with a company specialised in DataNetworks. In the Basque country we acquired acompany specialised in electronic componentsand data networking equipment.

Did you analyse the causes of your lack ofsuccess in central Spain?

J.B.A.- Yes, in Madrid one needs to own thewhole value chain: warehouse with a store, per-sonnel, distribution trucks, and this was not ourcase. In Portugal we act in a continuous way fromthe business deal to the final distribution, andMadrid should be also like that. In 2010 we star-ted providing the necessary means for this, andthe first six months have been very promising.

What’s Eurocabos turnover both inPortugal and Spain?

J.B.A.- Our consolidated turnover lastyear was 36 million euros. The year before itwas 45 million, we had a 9 million drop,approximately a 20%.

This drop was due to the Spanish or thePortuguese Market?

J.B.A.- Actually both, although the relative fallin the Portuguese market was smaller, 16% compa-ring with 20% in the Spanish market.

How is 2010 going so far?J.B.A.- In Portugal, we have achieved our

sales budget in the first semester, in the second weare coming short. Should everything run as expec-ted, we will close this year at 29-30 million euros,which is largely similar to our turnover last year.As far as profitability is concerned we may end upa bit below last year’s, in part because we havedecided to keep our investment program. In Spainwe are about 50% below budget.

In which new markets is Eurocabosbetting on?

J.B.A.- We have made advances on theFrench market, where we keep now two veryregular customers. We are scheduling a visitnext year with various contacts that we arecurrently establishing. The French market holdsmany question marks for us. We have an invi-tation to go to Morocco and there’s a possibilityto go to Algeria with a Portuguese partner.

How important is the Spanish marketoverall for the future of Eurocabos?

J.B.A.- Eurocabos has 126 employees, 80 ofwhich are in Portugal. In terms of warehouses, ifyou add up all our Spanish warehouses they areequivalent to about half of our warehousing areain Portugal, while the Spanish market is muchlarger than the Portuguese. There is therefore aclear growth opportunity, that’s why in 2008 wedecided to enter the Spanish market of energycables and special cables. Until now we had onlycovered the networking market there, and beingboth markets complementary it was a naturalstep to take, as many of out customers work inboth areas. Things are going well, and at thismoment we are creating the right conditions tosell energy and special cables in the BasqueCountry and Catalonia.

How would you describe the Eurocabosthat you are trying to build for the next fiveyears?

J.B.A.- I’d like Eurocabos to be recognized inSpain as well as in Portugal, yet my strategicgoal is that Eurocabos has left the Iberian penin-sula. The few operations that we have in Franceand the new ones taking shape in the north ofAfrica are being handled from Lisbon. In a fewyears I’d like to have local employees since thathas always been the company’s strategy.Currently, in each one of the companies we ownin Spain we have a local partner.

Interview with João B. AugustoGeneral Manager of Eurocabos

As one of the largest Portuguese distributors of cables for the energy and tele-coms sector, Eurocabos is striving to become an international company with thefragmeted Iberian market as the training ground for future endevours

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“WE HAVE AN INVITATION

TO GO TO MOROCCO

AND THERE´S A POSSIBI-

LITY TO GO TO ALGERIA”

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How did ACF enter the Angolan market?J.C.- The first initiative that we took on

Angola dates back to July 2007. In that yearwe made a visit and started taking care of alllegal documents, which was not easy. Wemanaged to be formally in Angola by the endof the year. In the beginning of 2008 we star-ted to compete for different contracts.

Have you worked always in Luanda? J.C.- We started with a working site in

Luanda and another in the province ofCabinda, which started in April. Eightmonths later we started another one inLubango, but our main office is in Luanda.

What are you doing in Lubango? J.C.- We are constructing a resort for the

Cosal Group. At the same time, we havestarted to work in a Hotel project for thesame group in Luanda. In Cabinda we wereworking in infrastructure work for thegovernment.

What is the size of your operation inAngola, then?

J.C.- In 2008 we reached 7.5 million dollars,while in 2009 we increased it sales to 18.5million. We are gradually growing in 2010, as wemanaged to gain a few new contracts. We havetwo hundred Angolan employees and about fiftyexpatriates.

What are the biggest problems you aredealing with?

J.C.- One of the big issues is the workingvisas, also the traffic in Luanda is very compli-cates, and thirdly workers have a lack of trai-

ning. Yet we have our own facilities, we haveinvested in a new head office and warehousing.

Would you say the biggest opportunitiesin Angola are in Luanda or in the provinces?

J.C.- I think the best opportunities are stillin Luanda, although the provinces are develo-ping quite rapidly, but it is Luanda first.

In what provinces will you concentrateyour work?

J.C.- I am planning to concentrate inCabinda and Lubango.

What kind of work? J.C.- Public and private roads, also in basic

sanitation, water, and in general everything rela-ted to construction.

Do you believe that the governmentsplan to build one million social housing unitsis realistic?

J.C.- I believe so, and many of hose are alre-ady being built.

Will you be participating in this plan?J.C.- Yes, we are. And we are establishing

contacts wit the government with that goal.

Do you feel the competition from otherPortuguese companies in Angola?

J.C.- We are beginning to feel it, but it is notvery strong yet.

What’s the overall importance of yourAngolan operation for the whole company?

J.C.- I see this project as very importancefirst for the growth of the country, and I thinkthis is a place where one can gain some contractsand make a profit. In Portugal right now thingsare very complicated.

What are your goals for the next threeyears?

J.C.- I’d like the company to keep on gro-wing, developing new areas of business andmake the company reach a hundred milliondollar a year. In only two years we could bethere, we are creating the conditions for that.

Do you believe that the company’s turno-ver in Angola could overtake the one inPortugal?

J.C.- I believe so, because in Portugal every-thing is idle, and here we have an opening togain much work.

What can the government do to improvethe business climate in Angola?

J.C.- I believe that the Portuguese govern-ment should make an agreement with theAngolan one to facilitate the mutual issuing ofworking visas.

Interview with José CorreiaManager of ACF (Arlindo Correia & Filhos S.A.) Angola

Faced with a collapsing demand in its home market, Portuguese construction companyACF went to Angola only two years ago. In this short time the company has not onlyestablished itself as a key player in the market but is also aiming high, with plans thatwill make the new subsidiary surpass its mother company in a few years

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“I THINK THAT THE BEST

OPPORTUNITIES ARE STILL

IN LUANDA, ALTHOUGH

THE PROVINCES ARE DEVE-

LOPING QUITE RAPIDLY”

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Precision metallurgy is not the first sectorwhich springs to mind when discussingPortuguese manufacturing capabilities butmany companies are global players at theforefront of the industry supplying interna-tional markets with high-value products.

And as the threat of competition increa-ses from new producers in Asia, Portuguesemetallurgical firms are finding innovativeways to hold on to and even boost theirmarket share by taking advantage of theirmany strengths.

Driving World Trade A company with more than two decades

in the industry is family-run Fundilusa whichmanufactures giant marine propellers forship builders around the world. The compan-y’s fortunes have taken off over the past sixyears with sales increasing by 600%.

“Those were the boom years when theglobal shipbuilding situation was very favou-rable and we had the ability, and the luck, totake advantage of it,” explains general mana-ger Pablo González. “We were extremelyaggressive which allowed us to grow alongwith the sector and we now have an annualturnover of around 28.5 million euros.”

Under Spanish ownership and manage-ment but largely staffed by Portuguese,González says the company employee situa-

tion is a good mix. “The Spaniards are goodat engineering and administration, while thePortuguese advantage is less costly manpo-wer and great team work, so we use the bestof both nationalities.”

Fundilusa is a key player in a highly-spe-cialised industry. Annual production capacityis 900 propellers, 1,800 propeller blades and250 caps, hubs and other proponents whichdrive the ships that drive world trade.

Its 160 employees, highly skilled anddedicated to quality, turn out finished, bron-ze alloy propeller units of up to 15 tons, bla-des for all classes of up to eight tons, pre-machined or finished hubs of up to ninetons and stainless steel and bronze caps andcomponents.

Engineers use state-of-the-art technologyto design each product to exact customerspecifications as well as for all the followingprocesses from patterns to casting to machi-ning to grinding and polishing, with deman-ding quality control tests carried out at eachand every stage.

All products manufactured by Fundilusaare certified by such classification bodies asthe American Bureau of Shipping, GL, DetNorske Veritas, RINA, BV, Lloyd’s Register

Phot

o: F

UNDI

LUSA

“IN EUROPE WE HAVE

QUALITY AT THE RIGHT

PRICE BUT FOR THE ASIAN

MANUFACTURERS QUALITY

IS STILL WAYS OFF ”

PORTUGAL’SMETALLURGYINDUSTRYINNOVATES TOBOOST MARKETSHARE COMPETITION MEANS

COMPANIES MUST EXPLORE

NEW BUSINESS MODELS

PRODUCTION OF STATE-OF-THE-ART PROPELLERS FOR THE NAVAL INDUSTRY IS AN EXAMPLE OF IBERIAN SINERGY AT WORK AT FUNDILUSA

Pablo GonzálezGeneral ManagerFUNDILUSA

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and others. And the company’s prestigiousroster of clients is appreciative.

“We sell to the Rolls Royce Group,MAN Diesel, Schottel GmbH and othermajor engine manufacturers,” says thegeneral manager.

But Asia also presents a problem forFundilusa with new rivals continually emer-ging. González says these competitorsshould be a concern for all European manu-facturers and that they must face up to thechallenge by using Europe’s strengths toguarantee their survival.

“In Europe we have quality at the rightprice but for the Asian manufacturers qualityis still a ways off and this is our competitiveadvantage. We have to continue to increaseour range of products, boost the size of ourcompanies and aggressively move into thoseemerging markets, while keeping our qualityadvantage over our competitors”

Moving production to cheaper coun-tries is another tactic for staying competiti-ve and Fundilusa is studying plans to set upshop in Brazil, while a new factory inMorocco has been operational for over ayear. “We have to choose those paths whichhelp us in the market and this is a necessity,not just a dream,” he says.

A Global StrategyGlobalisation has been the strategy of

BTL - Indústrias Metalúrgicas SA, based innorthern Portugal, ever since the countryjoined the European Union in 1986.

“We felt that here was the chance tobegin to make the company truly interna-tional because by being in the EU, it waslogical that we could also have a commu-nity of customers,” recalls manager ManuelEduardo S. Tavares.

BTL manufactures and installs reactors,evaporators, tanks, mixers, pipes and otherspecialty equipment for customers in suchsectors as biotechnology, petroleum pro-ducts, chemicals, plastics, food processing,pharmaceuticals, resins and coatings, plusmany others.

It also designs, builds and installs com-plex electrical and electronic systems as wellas communication, control, weighing, flowmeter and industrial automation equipmentfor all types of manufacturing facilities.

BTL employs around 130 people and hasan annual turnover of 10 million euros.

At the beginning, BTL was involved onlyin the food and chemical industries but soondecided to branch out into other sectors.Now, the company also carries out turnkeyprojects, providing clients with finishedmanufacturing facilities.

“We did many turnkey projects in Braziland we were very competitive because in thatcountry such a project would normally invol-ve somewhere between five and seven com-panies but we were able to do everything, aswe have all the competences” Tavares says.

“And Brazil is a very interesting marketfor us because the economy is growing at9.5% per year and they speak Portuguese so,again, we are able to be very competitivethere,” he adds.

Other countries where the company iscurrently active are Spain, Romania, Bulgaria,Poland, Angola and Turkey.

“Portuguese companies can be compe-titive in all these markets and more becau-se of our creative ability,” Tavares explains.“We live in a relatively small country and sowe have been forced to be inventive to sur-vive. Also, the Portuguese are extremelyadaptable, we have a lot of know how andwe have highly-skilled, yet relatively lowcost, manpower.”

BTL’s location in northern Portugal isanother plus for the company as it has readyaccess to many of its domestic industrial cus-

tomers in the area as well as internationalclients via the region’s excellent land and seatransport routes.

Looking to the future, the manager saysthat he sees BTL as one day being part of alarger group composed of four or five compa-nies, establishing an “interactive cluster”, wor-king together and with outposts in otherparts of the world with a large incidence inSouth America.

“Our goal is to reach out and set upbusinesses in various parts of the world asglobalisation is the best way for companiesto survive and there simply is no othersolution,” he argues.

Manuel EduardoS. Tavares ManagerBTL - Indústrias Metalúrgicas, S.A.

“PORTUGUESE COMPANIES

CAN BE COMPETITIVE IN

ALL THESE MARKETS AND

MORE BECAUSE OF OUR

CREATIVE ABILITY ”

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Portuguese businesses are betting heavilyon the African nation of Angola where thegovernment is keen on attracting foreignexpertise to provide badly needed infrastruc-ture, goods and services as the economy takesoff thanks to revenue from the country’s vastoil and mineral resources.

While much of the world remains miredin a deep recession, the InternationalMonetary Fund predicts Angola’s GDP willgrow by 4.5% this year, down from previousyears but still respectable, and the govern-ment has earmarked billions of euros forambitious development projects to propelthe country into becoming an African econo-mic showcase within the next several years.

Construction cranes punctuate the skyli-ne of Angola’s capital, Luanda, as not-stopbustle and building dazzles visiting Westerninvestors and entrepreneurs, but the govern-ment is also working hard to pump money,manpower and know-how into the country’slargely undeveloped interior.

In a bid to bring those regions into the21st century, the authorities have grantedgenerous tax incentives for those companieswilling to invest there and foreign enterprisesimpressed with the country’s political, econo-mic and social stability are moving in.

At the same time, spending on consumergoods is rising as Angolans embrace the swe-eping changes which have come about sincethe end of their country’s civil war almost adecade ago.

And while China, Brazil, the UnitedKingdom, the United States and many othersare investing heavily in the country,

Portuguese companies have the advantage ofa long history in their former colony, alongwith continuing linguistic and cultural ties.

Looking aheadOne such group is ANP Investimentos

which is involved in several sectors, espe-cially real estate, and whose CEO, AlexandrePortugal, a national of both Portugal andAngola, is preparing more projects for thebetter times ahead.

“Our turnover this year will be around 22million euros but we think it will increasewhen the economy improves as expected. Atthis point we are in recession but our group’scompanies are among those managing tomaintain their financial stability,” he says.

Any visitor to Luanda will be familiarwith one of the group’s properties, the SkynaHotel, the country’s first luxury property andwhich is aimed especially at business trave-llers who can enjoy all the comforts theywould find in a similar hotel in the West.

“We have three more hotel projects in thepipeline but Angola still needs to attract notjust business travellers but also more touristsand we have to help create the infrastructureto receive them,” he says.

Another of the group’s projects is theFVK glass manufacturing plant, the largestsuch factory in the country and the onlyone which produces tempered glass.Opened just over a year ago, the factory hasbeen impacted by the economic woes butthe group has launched a marketing cam-paign that should double its turnover bythe end of the year.

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NP

INVE

STIM

ENTO

S

“ANGOLA NEEDS TO

ATTRACT NOT JUST BUSI-

NESS TRAVELLERS BUT TOU-

RISTS, WE HAVE TO CREATE

THE INFRASTRUCTURE”

CASE STUDY:ANGOLAPORTUGUESE INVESTORS SEE

VAST POTENTIAL IN THE

OIL-RICH FORMER COLONY

THE RECENTLY INAUGURATED SKYNA HOTEL IN LUANDA IS THE NEWEST OF A NUMBER OF PROJECTS BEING DEVELOPED BY ANP INVESTIMENTOS IN ANGOLA

AlexandrePortugalCEOANP Investimentos

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This Report has been produced by Quality Media Press

The whole Report as well as the complete interviews are

available at: www.qmpress.com

“So what we are doing right now is conso-lidating our current investments. We are con-sidering boosting our glass output and alsoincreasing the number of products so we canoffer the construction industry a more diverserange for all of its needs,” Portugal says.

The CEO is one of many Portuguese-angolan business people who left Angola atindependence and has returned to helpbuild the country. As can be expected he isvery confident on its prospects and has awealth of advice for those planning on follo-wing in his footsteps.

“Africa is a continent undergoing incredi-ble change and Angola is at the centre of it allregarding industrial and commercial deve-lopment. It suffered through the independen-ce struggle and a war so everything needs tobe rebuilt. Fortunately, however, there is thefinancial and human potential to see that allof this gets done,” Portugal says.

Investors, he argues, must come toAngola with the intention of staying to work,build and contribute to the prosperity of thecountry and that it’s a long-term project.

“Those who stay for just a week or two tosee if they can market their products are rarelysuccessful. They must come for a couple ofmonths, speak to people, see what is reallyneeded here and find a reliable partner whocan help support their enterprise,” he says.

“My advice is to not bring exclusivelyEuropean business theories and practiceswith you but come with an open mind andtry to adopt our way of doing things just as inany other developing country whether it isChina, Brazil or Angola.”

Hard Work and Commitment A company dedicated to building

Angola, literally, is Progest – ProjectosTécnicos Consultoria e Gestão Lda., which

specializes in finance, auditing, architecture,engineering, design, consulting and cons-truction management.

Among its government and public sec-tor clients are the ministries of foreignaffairs, finance, education, agriculture andfishing, as well as the Luanda provincialauthorities and Angola Telecom.

Progest has also worked with almost adozen banks and financial institutions andsuch foreign companies as PWC, the oil com-pany Totalfinaelf and Toyota, and has recentlyadded energy projects to its portfolio.

This year turnover in the 140-employeecompany is expected to be around 16million euros.

“We experienced sizable growth between2004 and 2007 but things began to cool off inlate 2008 and in 2009,” explains Progest direc-tor Manuel Resende de Oliveira. “Now, howe-ver, we feel that the market is recovering.”

But doing business in Angola is not awalk in the woods and the executive warnsforeigners thinking of investing here that thedays of easy money are well over and what isrequired now is hard work and commit-ment. Opportunities, he says, still aboundfor those willing to make a prolonged andsustained investment.

“Angola’s needs are enormous and oneexample I can give you is construction mate-

“LOOK AT CEMENT: NOW

THERE ARE FIVE CEMENT

PLANTS UNDER CONS-

TRUCTION TO SATISFY

DOMESTIC DEMAND”

NEW SUBURBS ARE BEING MODERNISE AND BUILT AROUND LUANDA, ADDING MUCH NEEDED BUSINESS AND LEISURE SPACE

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rials. There is no investment in this sectorand so we have to import almost everything.Look at cement – in 2003, only 10% of requi-rements were filled by local producers butnow there are five cement plants under cons-truction to satisfy domestic consumption,”

This should lower the cost of a commoditynow in high demand and which is very expen-sive, eventually enabling more Angolans toafford proper housing. “The cost of living isextremely high here and the main reason forthis is lack of local supply of many basic goods,”he says. “This is impeding our progress.”

Processed wood is another productwhich Angola imports in huge amounts eventhough the country has extensive forests ripefor harvesting with environmentally-friendlymethods. Other sectors with great potentialare agricultural products and livestock tohelp feed Angola’s growing population.

“Angola is a nation which is unique in theworld for many reasons and people shouldnot believe the negative things they hear. I’dlike everyone to understand that the peoplehere deserve to have a better life,” Resende deOliviera concludes.

A world of opportunitiesJorge Oliveira, who has worked in the

import-export and customs clearing sectorin Angola since 1966, says he rememberswhen the country produced 95% of all goodsit consumed, especially food, and believes itcan do so again.

“Angola has incredibly fertile soil, abun-dant rainfall throughout the year and one ofthe largest watersheds in Africa. Back in colo-nial times, Angola produced excellent winesand olives but not anymore, and in fact I can’tthink of any agricultural product we couldn’tgrow here,” he says.

In years past, before Angola became amajor oil producer the country’s export sec-tor centred on a wide range of goods inclu-ding coffee, corn, sisal, fish, canned fish andothers, few of which are exported now.

“What we need is for the government tofoster public and private cooperation todetermine which regions have the best soilfor particular crops,” Oliveira suggests. “Andas for minerals, Angola has everything – dia-monds, iron, copper, kaolin, uranium, etc.”

Government support is also needed forcontrolling costs which would lead to impro-ved competitiveness and more efficient pro-duction of goods and their transport fordomestic consumption as well as for export.

“Even locally-produced goods are muchmore expensive than they should be due to thehigh price of transport. And look at bananas,for example; those which are locally growncost more than the imported ones,” he says.

For Angola to reach its full potential,

Oliveira stresses that development of localmanpower is vital and proposes extensivetraining programmes for Angolans at alllevels of the workforce.

“I see a world of opportunities in all sec-tors and of particular interest for investorsare the manufacturing, transport and serviceproviders,” Oliveira explains. “There is stillmuch to do regarding health and educationbut if we all work together as a team, I thinkAngola can go a long way.”

“ANGOLA HAS AN

INCREDIBLY FERTILE SOIL,

ABUNDANT RAIN FALL

THROUGHOUT THE YEAR

AND ONE OF THE

LARGEST WATERSHEDS

IN AFRICA”

THE PORT OF LOBITO, SOUTH OF LUANDA, HANDLES A GREAT DEAL OF THE CONSTRUCTION MATERIALS THAT ARE IMPORTED INTO ANGOLA