“If nothing changes in Brazil, we should do [mais armas] In the USA”, says, explaining that the biggest obstacle of the company is the regulatory issue in the country, “Greater than the tributary”. In 2020, 74% of Taurus weapons were produced in Brazilian territory, the same level as the previous 2 years.
“To launch the product in Brazil, you need to go through an approval body that takes time. If there’s nothing in the queue, it’s 2 years [de espera]. As I have 378 products in the queue, if you do a math and divide by an average of homologations per year, I have 40 years of products in the queue. ”
The company has already moved two pistol production lines that were designed and developed in Brazil to its factory in the State of Georgia, in the United States, “To get away from this bureaucratic issue”. Salesio also said that he intends to make a simultaneous launch in Brazil and the USA, and that this will only be possible due to the measure.
As much as Taurus has a close relationship with the government and the Armed Forces, with meetings with the Civil House of the Bolsonaro government, the CEO’s speech reveals the company’s difficulty in advancing the approvals of the Army Assessment Center, where the results are produced. RETEx (Experimental Technical Report) of the products.
According to Salesio, the meetings with the government are primarily to discuss “The regulatory issue”, in addition to meetings with the Ministry of Defense for product development.
The Brazilian police and military market being dominated by foreign arms companies does not interfere in Taurus’ results, evaluates the company’s CEO Salesio Nuhs.
TAURUS IN THE BRAZILIAN AND FOREIGN MARKET
The company produced a record 1.6 million weapons in 2020 – an increase of 25% compared to 2019. The figure followed a net equity result of R $ 263 million in the year, according to the balance sheet disclosed by the company (in full) – 2 MB). The growth was 507% compared to 2019. “We have become an aggressive company in the USA. All of these records are the result of restructuring and market understanding ”, said the company’s CEO.
Regarding sales volume, the Brazilian market represents only 15% in the purchase of weapons. The rest goes to the North American civilian market, the company’s main target. “The civilian market is the most stable market,” he explains, saying that contracts in the police and military markets depend on tenders. “IT’S [um mercado] binary, you either win or you lose. We structured the company on top of the civilian market and aggregated these tenders that we participate in worldwide. ”
The company is an absolute leader in the sector within Brazil, without much competition. There is only the state-owned Imbel (Brazilian Industry of Military Material), which focuses on the distribution of weapons to the Armed Forces. Imports of pistols and rifles are released in the country, but they end up being much more expensive than Taurus products.
The CEO says that this is due “To this tax and regulatory issue”. He says that 70% of taxes are levied on products in the country, apart from waiting for approval. “Nobody comes if to submit”.
CONTROVERSY AND RESTRUCTURING
A few years ago, Taurus was constantly the target of requests for CPIs and criticism for making defective weapons. The manufacture of the pistol 24/7, caliber .40, was the one that had more repercussion. The weapon, which uses a hybrid firing system, which has been patented by Austrian Glock, has been sold to military police forces across the country.
Public security workers then went on to report cases in which the gun fired alone, without using the trigger, in addition to crashes and accidents – very fatal. Some batches of pistols and submachine guns were boxed in police battalions, unused.
“Taurus in the past has made some mistakes. Evidently they had consequences. This management has always been concerned with solving the problems of the past. We carried out preventive reviews on all weapons, whether police or civilian, as long as he showed interest. ”
The controversy opened space for foreign companies to embark on contracts with the police in Brazil. Recently, the Austrian competitor took some bids, as in the case of the Civil Police of the State of São Paulo, which closed a US $ 12 million contract with the European company for the purchase of 4,000 pistols.
Asked whether this affects the company’s numbers, the CEO said there was no impact: “It does not affect Taurus’ results (…) from the business point of view, of results”. Salesio explains that the tenders for the purchase of 2,000 weapons, 3,000 weapons do not end up interfering, exemplifying that Taurus’ production in the 4th quarter of 2020 was 8,200 weapons per day.
Problems crossed the country to the largest arms market in the world, in the USA. The company was also sued in the country and opted for a US $ 30 million settlement to close a class action lawsuit, filed against 3 companies in the group, including the foreign parent company.
Salesio attributed the problem to past management and said the agreement was part of the new administration, to “End this whole liability”. The CEO defends that the company regained the credibility of the Americans, with records in sales.
“Today, Brazil is the largest exporter of small arms to the USA. Before it was Austria. Taurus is the first import option for Americans, we are the 4th best-selling brand in the country. ”
Watch Salesio Nuhs interview with Poder360.
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