Major investment by Kohler Power Systems in Brazil

A recent announcement shows an interest of Kohler Power Systems in Brazil.

Brazil has been a strong market for industrial, construction, forestry, and agricultural equipment for a few years now.

I am personally very excited about the potential for the power generation and industrial equipment market.

This purchase by Kohler Power Systems in Brazil confirms my beliefs in the potential of this market even more.

Maquigeral

The company in question is called Maquigeral and is headquartered in Sao Paulo, Brazil’s largest city.

Maquigeral did not have an english version to their website,  but the google translated version is good enough to get an idea.

First and foremost, they are a manufacturer for generator-sets for standby, prime, and continuous use.

However they also have involvement in:

• Stationary batteries
• Uninterruptible power supplies
• DC systems & rectifiers
• Hydrogen fuel cells
• Oxidation catalysts

Kohler Power System

Kohler is headquartered in Wisconsin and manufactures generators and transfer switches.

Their products are widely used in the commercial standby and emergency power generation industry.

Also, they have been making inroads into the Residential standby and Marine onboard power generation markets.

Although financial details weren’t disclosed, I am confident in this investment by Kohler Power Systems in Brazil.

SDMO will manage Maquigeral, with Sandra Battistella performing general manager duties, and reporting the SDMO’s managing director, Jean-Marie Soula.

The director of engineering for SDMO, Georges LeGall, will move to Brazil and assist in the management of Maquigeral.

Brazil: A promising market for equipment manufacturers.

Brazil is a quickly becoming an important market for manufacturers of industrial equipment, diesel engines, and power generation equipment.

But I’m sure that the idea of this South American country having a booming economy is nothing new to those of you dealing in Agricultural and Forestry equipment.

Brazil is a country rich in natural products and their resource sector shows it.  They have rapidly expanding markets for agriculture, mining, oil & gas, forestry, and construction.

Electrical power generation is an important part of all of these industries.

One more thing to keep in mind, Brazil is a very protective country.

From my investigations, importing manufactured goods can be a difficult and expensive task.  They are quick to protect their own manufacturers with import tariffs and restrictions.

Packaging generator-sets in-country seems to be the best way to solve this issue.

This allows sourcing the simple manufactured goods locally and only importing components that aren’t Brazilian made.

I am unsure if any alternators are being wound there, but some diesel engines are currently being produced there for other equipment.

My interest in the Brazilian market for generator-sets have grown since this investment by Kohler Power Systems in Brazil.

With the massive growth in mining, oil and gas exploration & production, and a strong forestry sector, Brazil is definitely on my radar.

Also, the World Cup in 2014 and the Olympics in 2016 should provide a boost the the power generation industry there.

Are you involved in Brazil with generator-sets, industrial equipment, water pumps, or diesel engines?

Do you have comments on this acquisition by Kohler Power Systems in Brazil?

Please comment below or contact me on LinkedIn.