CUENCA MANUFACTURERS

With a highly skilled workforce and laws promoting manufacturing, home appliances, and ceramics industries, Cuenca has become a powerhouse for industry.

How has the company expanded its business scope in recent years?

DIEGO MALO TORAL Fibro Acero was founded 41 years ago, and we must highlight the responsibility and commitment of Fibro Acero’s collaborations at various stages in reaching its goals with the best possible work environment. Our brand is Ecoline, and we mainly produce gas stoves and kitchens, as well as freezers. We have developed an induction line for both countertops and ovens that are common in Ecuador. Conceptually, the idea was to generate the induction line in light of a significant investment in hydroelectric power. Additionally, in Ecuador LPG is subsidized, and the idea was to release that subsidy so that the price of LPG would stabilize. In addition to our Ecoline brand, with the aim of having a portfolio of products more or less related to appliances, we use our own brand to commercialize contract-manufactured refrigerators and televisions. Of our total production, 80% is sold in Ecuador; however, we export to about 12 countries, mainly in Central America, the Caribbean, and the Andean region. We have had interesting experiences. We have also exported to Africa, notably Algeria and the Ivory Coast, and are always open to external markets.

ALFREDO PEÑA The Graiman Industrial Group has more than five decades of experience, having commenced with industrial activities in an isolated part in Ecuador, but with very important advantages such as labor capacity and a regional vision for undertaking new projects. Graiman was born as an alternative using local natural resources and energy to generate added value. We have some 30 years of experience in the ceramic industry, having consolidated our position and expanded our regional footprint. In recent years, we have developed large formats and are augmenting our strength in those processes that require control of raw materials and the technological process. This has allowed us to export, despite the fact that in recent years the country has become less competitive in relation to its neighbors due to the cost of labor and inputs. We have differentiated ourselves and are competitive thanks to products from Europe. We are exporting considerably to the US and have succeeded in superseding many Spanish and Italian products. Graiman is also active beyond ceramic. We are integrating Cemento Atenas —which produces cement—and Tugalt—which produces metal structures. Graiman wants to deliver a housing and construction solution. We believe strongly in our production, our city, and our country. We are the first certified company with the Business Anti-Smuggling Coalition (BASC), guaranteeing customers that their product is free of manipulation. We have increasingly stringent standards, despite not being legally stipulated by European or American legislation.

What is your evaluation of the business climate of Cuenca, and what are the main factors that differentiate it from other cities?

DMT Cuenca’s development has various factors. Our geography does not allow a great expansion in agribusiness. Instead, for centuries, the inhabitants of this area have specialized in textiles, ceramics, handicrafts, and manufacturing. Local people have grasped the need to diversify, whereby there is a highly skilled workforce suitable for numerous sectors of the economy. Additionally, in the 1960s, a law promoting economic reconversion was created for the southern region that promoted tire manufacturing, home appliances, and ceramics industries. Today, we observe a more globalized economy, although many challenges still need addressing, including the improvement of our infrastructure. In the area of Cuenca, there are about 50,000 direct and indirect jobs related to the industry. The canton is home to 500-600,000 inhabitants, or around 50,000 families.

What are Ecuador’s prospects beyond 2020 in terms of construction?

AP We have seen a few years where the construction sector has been deflated. During this time, we have been working on our cost system, optimizing our operations in advance of renewed favorable winds. Construction is a latent need in the region, and there is an obvious deficit in infrastructure and housing. The group is betting on this eventual change, and for those keen to invest, now is indeed the time. The country intends to participate in global economic development, and combined with Colombia and Peru, this region represents a major opportunity. ✖