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Lord sees signs of recovery of the Brazilian operation

News International-French

29 Sep 2016

Company’s strategy to face the crisis involves the expansion of its product range and the entry into new areas

Expert in the development of high-performance coatings and adhesives, Lord, a local subsidiary of the US-based Lord Corporation, believes that the worst of the Brazilian crisis is over. The current financial indicators of its local operation, for example, are in line with the forecasts in the beginning of the year.

“This fact itself is positive news and evidences that the recovery is beginning,” said Guido Albo Gutierrez, director for Latin America.

Still, Lord has been following the usual steps common to corporations in times of economic downturn: make the internal processes more efficient, expand the range of products and explore new areas of operations.

The strategy has been successful in the rubber sector, which accounts for a significant share of the company’s revenue in Brazil. With the recent launch of three products, which reinforced the traditional Chemlok family, in addition to the boost given to exports due to the relatively favorable exchange rate, Lord’s sales grew 9% in the first half of the year. The result should be celebrated, especially because half of the company’s business involving adhesives and coatings for rubber are with automakers, whose sales in the first seven months of the year fell 25% compared to the low results reported in 2015.

The advance into new markets, in turn, was marked by the company’s entry in the lighting area – It developed a series of products for manufacturers of LED lamps and ballasts, such as encapsulation resins. Despite being a new player in this segment, Lord estimates that lighting may account for an 8% share of its revenue reported in 2016 in Latin America, according to contracts executed in Mexico and new developments in Brazil.

“To face the challenging economic scenarios, such as the one currently experienced in Brazil, the company has strengthened its entrepreneurship, searching new markets, and focusing on innovation and on the specific needs of its customers. We intend to multiply the successes and intensify our partnerships,” said Gutierrez.

Lord Corporation is a diversified technology and manufacturing company developing highly reliable adhesives, coatings, motion management devices, and sensing technologies that significantly reduce risk and improve product performance. For more than 90 years, LORD has worked in collaboration with our customers to provide innovative oil and gas, aerospace, defense, automotive and industrial solutions. With world headquarters in Cary, N.C., it has approximately 3,000 employees in 26 countries and operates 18 manufacturing facilities and nine R&D centers worldwide. Lord actively promotes STEM education and many other community engagement initiatives.