Leonardo Sales CEO CORREIAS MERCÚRIO
What is the company’s manufacturing footprint in the country?
We have two factories in Brazil; in Jundiaí, São Paulo, and in Marabá, Pará. The Marabá factory, completed in 2016, recently expanded its capacity by 50%. This factory focuses on heavy-duty belts for mining, but we also produce lighter belts for agribusiness. Being close to our clients is crucial. For example, delivering a belt to clients from São Paulo to Pará takes about 12 days by road, while from Marabá, it takes only 24 hours. This proximity allows us to respond quickly to client needs, especially in the mining sector, which is increasingly moving to northern Brazil. Can you discuss Correias Mercúrio’s key competitive advantages?
Conveyor belts are essential for the mining industry, especially for transporting large volumes of minerals like iron ore, copper, and coal. As the demand for these minerals has grown, so has the need for efficient transportation solutions. Our products cater to this demand, focusing on reducing emissions and increasing efficiency. The extensive use of conveyor belts in Brazil minimizes the need for off-road trucks in remote mining operations. We manufacture three types of carcasses: steel cord, fabric and aramid. Our development efforts include high-tension belts for critical applications in Chile, Peru, and Brazil. Our goal is to provide solutions that increase the lifespan and performance of conveyor belts, ultimately lowering the cost per ton transported for our clients. How does Correias Mercúrio innovate in terms of technology and product improvement?
We have focused on research and development to improve rubber compounds, extending the life of our belts. This helps clients reduce maintenance and downtime. For instance, some belts that previously needed replacement annually now last twice or even three times as long. Additionally, we have introduced systems to monitor belt conditions in partnership with a company from Finland that uses laser and image processing to detect cuts and measure thickness without embedding sensors in the belt.
Paulo Costa CEO BEUMER SOUTH AMERICA
Can you introduce us to BEUMER South America?
FAM, which since 2022 is part of the BEUMER Group, opened an office in Brazil in 2020 to leverage Brazil's significance in global commodities. The hub in Brazil primarily involves establishing an office without a manufacturing facility. The focus is on the availability of skilled and experienced people in the market. The local workforce is highly skilled and provides the strength we need for our operations. We have around 90 colleagues in the Belo Horizonte office. Out of these, approximately 50 are engineers.
Can you discuss the trends and demand for BEUMER Group's products and services in Brazil?
ESG is now a significant factor in our business, more so than a few years ago. Another trend is the rise of digitalization. These factors have changed how we operate and engage with stakeholders. Additionally, there is a shift in the professional profile of employees, with a growing emphasis on work-life balance and faster career progression. This change poses a challenge as we adapt to attract and retain younger talent who have different expectations and demands compared to traditional industry standards.
We are mainly focusing on materials handling. Most of our current projects are aimed at sustaining existing operations rather than investing in new mines. We are seeing a trend in which internal processing systems are converted into more sustainable alternatives. Can you discuss the challenges you have encountered operating in Brazil?
One major challenge is the conservative culture in the mining sector regarding innovation. There needs to be more willingness to test new solutions, which affects our ability to deploy and refine new technologies. Additionally, there is also still some uncertainty regarding the long-term development and growth of the critical minerals sector in Brazil; the market for these materials is not fully mature, and some projects are economically unviable due to challenges in sorting and processing. It is something we are watching closely.