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Systemair ventilates a new continent

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Systemair manufactures and markets a wide range of fans, air curtains, heating and cooling products for various sectors. Systemair asked Business Sweden to support its market entry in Latin America and Chile by helping with the incorporation and engaging target stakeholders.

Systemair was founded in 1974 and had their first sell in Chile in 2007 through a local distributor. Chile was targeted as an interesting market, due to its similarities with European markets and its stronger focus towards energy efficiency than other Latin American markets.

Support in the establishment process

“We were approached by a Chilean distributor that initiated sales on the Chilean market. Already having had some sales, it was easier to continue the expansion and go ahead with the establishment of a local subsidiary, however of course there are a learning curve and it´s better to count with good partners," says Juan Manuel Fernandez, General Manager at Systemair Chile.

Systemair experienced the customs procedure to be simple in Chile, especially compared to other countries in the region, where it is often perceived as more problematic. A challenge for Systemair during the process has been the distance to Sweden. Because of this, it is for example not possible to have frequent visits from the headquarter in Sweden. Business Sweden supported Systemair with establishing a legal entity in Chile, in conjunction with a local law firm. The support included documentation collection, legalization of documents and the actual administrative set up, locally in Chile. Business Sweden also organized a launch event with key stakeholders at the Swedish Residence.

"The presence of the Swedish Ambassador in the official Swedish Residence made a strong connection with Sweden, which has a high reputation in Chile," says Tomas Korseman, Trade Commissioner to Chile at Business Sweden’s office in Santiago.

Springboard to Latin America

Systemair has also participated in different promotional activities arranged by Business Sweden targeting specific sectors such as mining under the umbrella of Team Sweden“.

“To participate in different targeted fairs has enabled us to get in contact with potential customers and also to get a better overview of the market," says Juan Manuel Fernandez from Systemair.

Systemair’s establishment in Chile has been fruitful. As of 2015, the local company consisted of seven employees in Chile and their own facility assembly & warehouse. Its main sector focus has been on construction, mining, and industry, where Systemair has gained a considerable percent market share in Chile in few years.

Already after our experience in this market we jumped in to Peru due all the experience accumulated during this time. However Systemair is also using the office in Santiago as a stepping stone to reach other markets as Uruguay or Bolivia.