San Francisco SME Exports Rubber Parts to Germany

  • Emegom has completed its first export and continues working hard to enter new markets.
  • The milestone was achieved with the support of the Ministry of Industry, Trade and Mining's ProCórdoba Agency, which helped with international standard compliance aspects.

This Cordoba-based SME, located in the San Francisco Industrial Park, has been manufacturing rubber, rubber-to-metal and rubber-cloth parts, such as bushings, silent blocks, supports, anti-vibration mounts and bellows, for 25 years. Its products are not sold directly in stores; rather, the company focuses on providing solutions and manufacturing customized parts for different industries. It manufactures rubber parts mainly for the automotive industry, but also for agricultural machinery, motorcycles and household appliances, among others.

At the end of last year it made its first export to a German multinational company which has world-class branches all around the globe. The expectation is that orders will increase in quantity because the multinational is a very important customer that can provide continuity.

Minister of Industry, Trade and Mining Eduardo Accastello celebrated the news that another company from Córdoba was able to make its first sale abroad and is projecting itself in the international market.

He highlighted the importance of the Industrial Parks for the growth, expansion and greater competitiveness of the companies located there, as well as for the productive development of the province, and announced that together with ProCórdoba Agency "the decision has been made to provide support to the Industrial Parks in foreign trade to promote exports in accordance with what Governor Schiaretti has asked of us" and said that "the Industrial Park of San Francisco will be the first to receive it."

Pablo Maine, director of the company, said, "What we sold are bushings for cars and trucks. At the beginning of March we are shipping a new order. The effort of all our collaborators within the company was fundamental, as was the support of our customers, suppliers, chambers, the cluster and advisors."

Emegom was the first company in the San Francisco Industrial Park to be certified to ISO 9001-2015 and IATF 16949:2016. It has been making a great effort to be able to supply the most demanding markets. Two years ago it joined the Export Development Program (EDP) run by the the Ministry of Industry, Trade and Mining's ProCórdoba Agency.

The company Director referred to the program: "The EDP has been very useful, above all, in helping us to organize ourselves as a company. We had workshops focused on family-owned businesses, export costs, logistics, how to improve competitiveness... The Agency has supported us with standard certification and in the development of marketing, our website and brochures. We have also participated in virtual business rounds with Uruguay and Brazil, markets in which we have very good prospects and to which we have already sent quotations for specific clients."

In addition to this first sale to the German market, with the technical and financial assistance of ProCórdoba, the company was able to strengthen its relationship with a potential customer in Mexico, which has already made purchase orders for this year. In 2019 they traveled to that country with a business agenda. Subsequently, an inward mission was carried out in which they were able to invite the potential Mexican importer to visit and inspect their industrial plant.

"We had very good results with the trips. Our product is commercially complex, it is not as easy as selling a finished good, it requires very long-term agreements. We had to develop new pieces, redesign production processes, and incorporate new machinery and new testing tools. Soon we will also be able to effectively start these new operations," said Maine.

Preparing to Export

"In recent years, we have acquired several rubber injection molding machines. This has allowed us to increase our production capacity and compete with advanced technology in the toughest markets and against the most demanding products. At the same time, we have been incorporating and training more personnel. We make great investment efforts and that is why the Ministry of Industry granted us the Industrial Promotion [benefits]," said the company Director about the road traveled and the good results that arise when the private sector works together with the public sector.

The company also participates in the Foreign Trade Entry to Work Program of the Government of the Province of Córdoba, which allows it to have a technical assistant specialized in foreign trade in its work team. In addition, this year they also entered the Federal Technical Assistance Program, run by the Argentine Investment and Trade Promotion Agency and monitored by ProCórdoba. They also received financing under FExIC (the Fund for Export and Internationalization of Cordobese Companies) to carry out their internationalization projects.

"These are all very big incentives," stressed Emegom's Director, and he added, "I would like to tell companies that are just starting out to take advantage of these tools and welcome the support of government agencies. It simplifies things that at first seem impossible."

ProCórdoba Agency's Business Intelligence Service is a tool designed to help SMEs from different sectors in Córdoba to position their products in strategic markets by preparing an Export Development Program (EDP) tailored to the needs of each company.