Trade and the Canadian Economy
The Canadian Companies in the Andean Countries
Stories of the Week - September 16, 2002:
The Andean countries - Bolivia, Colombia, Ecuador, Peru and Venezuela - are important commercial partners for Canada.
Canada will lauch shortly trade agreement with Andeans countries. It intends to further develop its commitments to the Americas, while continuing to pursue greater trade and investment liberalization.
This second issue of Stories of the Week features success stories from Canadian companies who have provided in the Andean countries their products and services.
Stories of the Week - September 16, 2002
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Traffic Management Systems in Colombia
International Road Dynamics Inc., Saskatoon, Saskatchewan
Highways around the world are equipped with traffic management systems produced in Saskatoon by International Road Dynamics Inc. (IRD). The company designs and installs truck weigh-in-motion (WIM) systems, as well as vehicle classification and revenue collection systems that enable private road concessionaires and toll agencies to audit and track toll receipts, and to control pilferage.
With more than 90 lanes of equipment installed or currently under contract in Colombia, IRD has established itself as a major supplier of automated toll collection systems under the Colombian Government's highway concession program. "Since installing its first system in Santa Marta in 1996, IRD has delivered systems to the cities of Neiva and Cali," says Greg Wallis, IRD's Director of International Business. "We also supply traffic counting and classifying systems, and WIM systems to enable the concessionaires to measure the flow of traffic and control overweight vehicles on their highways." From his office in Bogotá, IRD's Regional Manager oversees the company's business, not only in Colombia but in all of Latin America.
About 95 percent of IRD's sales are generated by exports, mainly to the United States. The company has also become a major supplier of toll road systems to transitional and developing countries. Established in 1980, IRD employs 160 people and maintains sales and service offices in Brazil, Colombia, India, and throughout the United States. Its Canadian operations provide all manufacturing, engineering services and support, project management, and marketing and sales support.
Capsule Machines in Colombia
Technophar Equipment and Service Ltd., Tecumseh, Ontario
Another two cellulose capsule machines are on their way from Tecumseh, Ontario to Colombia. Technophar Equipment and Service already has seven of its machines installed in Colombia, where it is the only supplier of this type of equipment. "Elsewhere in the Andean region, we have delivered seven gelatin capsule machines to Venezuela and one to Brazil," says Herman Victorov, President and CEO of Technophar.
Technophar is the only company in the world manufacturing both hard and soft gelatin capsule machines, which encapsulate everything from paint balls to medicine and even put hard coating on candies. The company provides customers with full turn-key services and manufactures everything in-house. With installations in 19 countries, exporting has been key to Technophar's success. "About 95 percent of our sales today are generated by exports," adds Victorov. "This has enabled the company to grow from eight people to more than 400 worldwide."
An EDC customer since 1991, Technophar makes extensive use of the resources available at Canadian embassies and consulates worldwide. "Trade Commissioners have given us leads and we still get good information from them," adds Victorov-who has also participated in four Team Canada trade missions, including this year's trip to Russia and Germany. "The missions presented us with excellent opportunities and enabled us to sign lucrative contracts in China and Vietnam in the presence of the Prime Minister."
As an exporter, Victorov sees his job not only as the president of a company, but as a Canadian ambassador selling his country to the world. "We have a responsibility to represent Canadian technology and innovation," he says. "When the job isn't done right, it reflects poorly on Canada, not just on the company. We take a lot of care to do the job well."
Office Systems in Venezuela
Teknion Corporation, Toronto, Ontario
Teknion designs, manufactures and markets office systems and related office furniture products that support the complex integration of people and technology. In honour of its success in international markets and its contribution to the Canadian economy, as well as for taking strong design and innovative products around the world, Teknion was presented with the 2001 Exporter of the Year award-Canada's highest exporting award-in addition to a Canada Export Award. Selling to more than 50 countries, Teknion has a growing market presence in North America, South and Central America, the Caribbean, the Pacific Rim, Asia and Europe.
Since winning its first Latin American contract in 1994 with Hoechst Chemicals of Venezuela, Teknion has carried out numerous projects for multinational and locally based clients throughout the region. In the Andean countries, these include 300 workstations in Bogota for Cemex (one of the world's largest cement companies) and installations in Peru for Banco Sudamericano, Reuters and Cisco. In Venezuela, Teknion installed 800 workstations for Citibank and carried out a project for Abbott Laboratories, which was recently written up in the prestigious Venezuelan designer magazine, Deco News. In 1999, Teknion delivered 650 workstations to Procter & Gamble Corporation's headquarters in Caracas and reconfigured the facility last year to hold more than 900 workstations. Teknion has since completed projects for Procter & Gamble in Costa Rica, El Salvador, Guatemala and Mexico.
"There is no doubt that Latin America is a challenging marketplace, but like our product, we are a very flexible company and committed to expanding our operations there," says Arnie Rusinek, Teknion's Vice President for International Operations. Last year, the company appointed a regional manager, Ivan Cortes, based in Chile, to provide stronger and more direct support for its Latin American clients.
Since its establishment in 1981, Teknion has grown to employ more than 3,600 people worldwide and now has approximately 3 million square feet of facilities, including manufacturing plants, showrooms, corporate headquarters and sales offices.
Project Logistics in Ecuador
Transera International Logistics Ltd., Calgary, Alberta
Transera International Logistics has grown to be one of Canada's largest freight-forwarding companies, with exports accounting for roughly 40 percent of its business. The company handles all types of cargoes worldwide, but it has made its reputation managing project logistics in the mining and oil and gas industries. "We see ourselves as an extension of our clients' companies-a source of expertise that acts and provides answers where and when clients need them," says President and CEO Rosemary Marr.
Since 1999, Transera has successfully coordinated time-sensitive global logistics for the largest ongoing oil and gas project in Ecuador. Transera was responsible for ensuring that all project materials-including over-dimensional cargo, break bulk and air freight-were delivered on time and on budget. It also developed an in-house purchase order management program that continues to provide on-line tracing capabilities for the client. Over the years, the scope of this project has grown tenfold.
In 2001, Marr was honoured as Canadian Woman Entrepreneur of the Year in the Exporter category. "Winning the award was important to me, but more so for the company," she says. "It was a clear message that Transera has come of age, is a strong player and can no longer be considered a small company."
With offices in Calgary, Edmonton, Toronto and Houston, as well as in Cyprus, Ecuador and Kazakhstan, Transera is poised for further growth. "We went through considerable expansion last year, opening three new offices and making an acquisition in the United States," says Marr. "This year we are focusing on developing each of the new offices to its maximum potential, while at the same time seeking new acquisitions that fit our strategic plan."
Utility Poles in Peru
Stella-Jones Inc., Montreal, Quebec
In the face of stiff international competition and with help from Canadian Embassy staff in Lima, Stella-Jones Inc. won a $7.2 million contract to supply 48,000 utility poles to the Peruvian Ministry of Energy and Mines. Delivery of the wooden poles, which are being used for electricity transmission in rural areas of Peru, was completed in February 2002.
The firm's international presence is enhanced through its ties with James Jones & Sons Limited, a British forest products company, and Stella International S.A., a holding company associated with an Italian manufacturer of utility poles. "These companies, together with their joint venture company Stella Jones International S.A., use their technical knowledge and international marketing expertise to promote the growth of Stella-Jones in Montreal," explains company Vice President, Georges Labelle.
Stella-Jones is the only Canadian company in the wood preserving industry operating on a national scale. Among its competitive strengths: a high-quality timber supply; locations across Canada with easy rail, highway and port access; and long-term relationships and supply contracts with electrical utilities, telecommunications and railway companies, Crown corporations, and governments.
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Updated on September 16, 2002
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