Sauder readies factory in Brazil
By Tom Edmonds -- Furniture Today, January 18, 2004
ARCHBOLD, Ohio — Ready-to-assemble furniture maker Sauder Woodworking is establishing a beachhead in Latin America with a factory in Brazil.
Sauder will make RTA furniture for South and Central American markets in a leased 60,000-square-foot factory in Uberaba, Brazil, which it expects to have up and running this year.
"Because of import tariffs and freight costs that almost double our retail prices, it's currently very difficult for Sauder to remain competitive in this important market," said Loren Roth, director of international sales. "Producing in Brazil will position us as a strong player in Latin America and also help us to serve our U.S.-based customers more efficiently as they expand their retail networks worldwide."
Sauder has hired L. Albert Farha, experienced in the South American market, as general manager of the facility, to be called Sauder Brasil Industria e Comercio Ltd. Duane Wyse, a 15-year engineering executive for Sauder, will be part of the factory's technical team.
Roth said the company is exploring sales opportunities in Latin America and has prepared samples for a few Brazilian customers.
Although the Brazilian economy and government have been shaky at times, the country has taken steps to promote a more business-friendly environment, said Kevin Sauder, president and chief executive officer.
"It's a risk, but we're starting out in a small way," he said, adding that Latin America is a growing market the company can't afford to ignore.
The sixth-largest U.S. furniture maker, Sauder moved into case goods two years ago by acquiring Progressive Furniture, a domestic producer and importer. Last year, Sauder bought Studio RTA, which imports flat-pack furniture from Asia.
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