After having set up a liaison office in São Paulo / Brazil last year, the local chapter of the German association for plastics and rubber machinery VDMA Kunststoff- und Gummimaschinen (KuG, Frankfurt; http://kug.vdma.org) held its first Brazil Management Meeting on 26 March. The discussion at the event, attended by local representatives of VDMA members, focused on the economic situation in Brazil – widely described as sluggish. Participants complained of excessive pay settlements driving up wages as well as a general decline in productivity. They also pointed out that the large volume of Asian machinery available on the market was causing problems for high-end manufacturers, adding that German machinery makers do not get to enjoy the favourable tax and custom agreements applied for local producers. These factors notwithstanding, participants at the meeting agreed that the economy would see low growth rates in 2014, expressing cautious optimism.

Another topic discussed at the meeting was the revision of the Brazilian regulatory standard for machinery safety. While participants welcomed the fact that the 2010 standard is being revised, they expressed concern about an imprecise allocation of responsibilities and also lamented some technical provisions in the new regulations. One way of avoiding misunderstandings, VDMA said, is to develop international standards – a project in which the association has already made some headway.

VMDA had opened the office last year with the aim of assisting its members in obtaining industry information from Brazil and providing a local network for manufacturers. The office is headed by executive director Thomas Junqueira Ayres Ulbrich.

Last year, German plastics and rubber machinery manufacturers delivered goods to the tune of EUR 163m to Brazil, making the Latin American country the sector’s fourth largest customer, VDMA said. Germany supplies about one quarter of all Brazilian plastics and rubber machinery imports, placing it ahead of China, the association added.