Brazilian-American Capital and Investment Exchange Analysis
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II. FITESA
South Carolina
f. fitesa
Sector
Textiles
Start of operations in the USA
2008
Presence in the USA
History of relations with the United States
Following its international expansion policy, Stefanini
opened its operations in the United States in early 2001
by incorporating its first company in Florida, located in
Fort Lauderdale, with the following objectives: to expand
its existing relationships with American companies in the
United States; to offer software development from Brazil
as an alternative to offshore services, mainly supplied by
global players and Indian companies; to enhance the quality
of its services and solutions by exchanging experiences and
assimilating new methodologies and best practices in the
United States; and to explore the American domestic market
to boost Stefanini's growth as a global company.
Milestones in Stefanini's expansion in the United States:
2001: Incorporation of company and opening of office in Fort
Lauderdale, Florida
2002: Opening of office in Atlanta
2005: Opening of office in New York
2008: Opening of office in Chicago
2010: Acquisition of Tech Team, based in Southfield, MI
2011: Acquisition of CXI, based in Richmond, VA
2013: Acquisition of RCG, based in Philadelphia, PA
Implementation of business plan in the United States
Between 2001 and 2003, the company structured itself
and learned about the American market and how it would
position itself in the country. During this period, it prioritized
market studies. From that moment on, it sought the Brazilian
government's support to aid its strategy to highlight Brazil as
an alternative option to countries such as India in the sector.
The initial investment to implement its activities in the United
States was high, and fully funded by the company. From 2004
onward, the company managed to advance its projects aimed
at strengthening Brazil's image and consequently attract
attention to what became its biggest competitive advantage
in the American market: being a "nearshore" provider.
The company
Fitesa is a leader in the nonwoven fabric industry, specializing
in the supply of innovative materials for the hygiene, medical
and industrial markets. The company was established in 1973
to produce polypropylene packaging (woven bags), carpet
backing and staple fibers for textile applications. In 1988,
Fitesa started producing spunbond nonwoven fabrics, which
represented a technological breakthrough, from which it
migrated to more sophisticated technologies and products
for application in hygienic disposables (diapers and sanitary
pads), medical disposables and durable products.
Fitesa produces spunmelt, carded, airlaid and specialty
nonwoven fabrics for application in baby, female hygiene
and adult incontinence care products, as well as medical,
agricultural and industrial areas. The company now operates
10 industrial plants in eight countries.
The market
The hygiene market is basically composed of baby diapers,
sanitary pads, panty liners, adult incontinence products and
wet wipes. There are global and local producers of these
disposable hygiene products in every region. Consumption of
disposable hygiene products continues to grow worldwide,
as the global population maintains positive growth rates.
Furthermore, the use of nonwoven fabrics as a proportion of
disposable hygiene products is increasing, given that product
quality is improving, and nonwovens are a fundamental raw
material in this process.
Investments in the United States
Fitesa's relationship with the USA began with a production
plant established in North Carolina in 1991 to produce
spunbond nonwoven fabrics. However, it sold its Fitesa North
America assets in 1996, when the company left the U.S.
market.
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