Schneider Electric SA: Increasing Presence in the Brazilian Automation Market

Published: 30 Aug 2007

By Marina Schreiner, Research Analyst

Automation Market Background

The Brazilian automation market mainly comprises multinational companies such as Siemens AG, ABB, Yokogawa Electric Corporation, Rockwell Automation, Inc., and others. However, there exist a few local companies such as WEG, Altus Sistemas de Informática SA, and Atos Automação Industrial Ltda., which also play an important role in automation segments such as low-voltage drives and motors, and programmable logic controllers (PLCs).

The major reason for the development of national companies in a few automation markets is related to political policies. In 1984, the Brazilian Government established the National Informatics Policy (Política Nacional de Informática), which aimed at the improvement and protection of a local computer industry. Among its other features, this law determined that a part of the market necessarily had to belong to local capital firms. This policy included not only computers, but also controllers, and it lasted until 1992. Within this period, Brazilian enterprises managed to increase their participation in sales, whereas global vendors entered the market through alliances with local companies.

Schneider Electric's Strategy in Brazil

Schneider Electric SA has increased its presence in the world automation market through the acquisition of existing brands. Since 1991, brands such as Merlin Gerin, Telemecanique, Square D, and Lexel have become Schneider Electric SA brands.

In Brazil, the company followed the same strategy. Since 2001, Schneider Electric SA has acquired Crouzet Automatismes SAS (specialized in control and industrial automation), CDI Power Ltda. (specialized in electric systems automation), TAC (specialized in building automation), and MGE UPS SYSTEMS (specialized in UPS). In the world PLC arena, the company acquired Modicon, which was the first company to develop a PLC, in 1996. Modicon became a PLC family name in Brazil in 2003.

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