Continuing with our efforts to better serve our clients Intrix Corporation through our subsidiary in Chile is putting together a new program for investors.  The program includes the pre-investment analysis and due diligence processes. Intrix Chile team includes legal experts with extensive experience advising international companies in Chile. We also have financial experts to advise in the incentives that government provides for investors attractions.    

The Brazilian construction industry shows its force, With a registered growth of 6.8% obtained in 2004, a year of recovery for the construction industry, the expectations for this year are quite optimistic. This is the opinion of various entities that support the Construction Week in São Paulo, the biggest event of the the construction industry of Latin America and the 4th largest in the world.

The application of funds from FGTS - Government Severance Indemnity Fund for Employees in housing projects has always been a predominant factor for the construction industry. Between 2003 and 2004, the FGTS registered a growth of about 20%. The forecast for this year is that approximately R$11.2 (US$4) billion of FGTS funds will be funnelled to housing and sanitation schemes. This amount is 38.3% greater than those applied last year. According to ANAMACO - National Association of Construction Material Retailers, the construction industry market registered in 2004 a 3% growth in relation to the previous year. For 2005, retailers expect a growth of 5%.

One of the sub sectors in the industry, experiencing the growth is: the electric shower. The industry completed 40 years of history in Brazil. According to the Brazilian electric shower industry this product is extremely energy efficient because of a high conversion rate from electric energy to heat, with low water waste. There are a variety of prices and models for electric showers with a range of those made with PVC and 4400 W power which cost about USD $8 – USD $15 to the more sophisticated models with electronic controls and higher power (8200 W) which cost USD $200 and more.

Brazil has about 19 million installed electric showers which means about 75% of Brazilian homes use them. The market is estimated at about 8 million units sold per year, mostly "popular" models (PVC body, 2 different temperature options – "hot, tepid, OFF").  The sector employs about 35,000 people.

There are nine electric shower manufacturers in Brazil. The largest, Lorenzetti, Corona, Fame Cardal and Tertec are based in São Paulo State. The others, Botega, Zagonel, Lousano and Sintex are based in Santa Catarina State. The only manufacturer featuring digital temperature control is Tertec. The line was introduced in 2001 and registered a growth of 30% last year.

The construction market offers a great opportunity for foreign companies interested in investing in new technologies and partnering with local companies. If you are interested in this market contact Andre Marzall.

A promising future for Latin America; prestigious personalities from government and corporate sectors discussed the future of the region during the VIII Latin Conference organized by MIT Sloan School of Management. According to the president of the Inter-American Development Bank (IDB) Enrique Iglesias, one reason that explains the strong growth of the region is the relationship with China.  The giant is demanding more commodities from Latin America and will continue to need more and more to sustain the country's growth. China wants to become a member of the IDB and is investing in sectors such as mining, logistic and agribusiness. The country wants to strengthen its relationship with Latin America and is interested in more than just trade of commodities. One initiative is occurring in the tourism sector. They are opening new airline routes and promoting destinations in South America such as Peru and Argentina. The governments and entrepreneurs need to be prepared for this new opportunity, otherwise the bonanza is not going to last.

Latin American companies overcoming challenges and becoming global; consumer products, agribusiness and airline companies, among other sectors, are becoming global players. AmBev is one example of this group. With the recent merger between AmBev and InBev the group has become the number 1 global brewer and features some of the most powerful global brands and employs 70,000 people. Carlos Britto, the president of North America Zone, declared that the company wants to became the best brewing, not just the biggest.  Mr. Britto believes strong corporate cultural values have helped the company to achieve this position. Having dreams, sense of ownership, and keeping the culture alive is part of the company's success. Challenges that AmBev faced in the region were volatility, competing companies tax evasion, high interest rates, legal systems and regulations.  Mario Barbosa, CEO of Bunge Fertilizantes, the number 1 fertilizer in Latin America, adds to the list of challenges: bureaucracy, social extremes, deficiency in infrastructure, and economic blocks movement.  Overcoming the regional challenges with a clear vision of the future has been part of the valuable experience of these global players.