Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 151 Michel Deliberali Marson Federal University of Alfenas (Brazil) From the Import-Substituting Industrialization to Internationalization in the Machine Tools Industry in Brazil: The Case of Romi Abstract This paper aims to describe Romi’s business history in order to contribute to the discussion and improve the understanding of how Brazil, with strong industrial growth during the import substitution process, but with low technological development, generated companies that exported technology-intensive capital goods, and also started these firms’ internationalization process. Romi started out as a small business, an automobile repair shop, at the beginning of the twentieth century. In the 1960s, the company was already one of the largest lathe producers in the world. Today, it is still an important machine tools producer in Brazil with subsidiaries in several countries around the world. Keywords: Industrialization; Capital Goods; Machine Tools; Brazil Introduction Industrialization has been the most powerful factor in the process of accelerating economic growth. The industrial sector has had a dynamic impact on other sectors of the economy, especially on the social and institutional environment. Corresponding author: michelmarson@yahoo.com.br Received 05 Dec 2017 - Accepted 11 April 2018 This is an Open Access article distributed under the terms of the Creative Commons Attribution-Non-Commercial-No Derivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-comercial re-use and distribution, provided the original work is properly cited, and is not altered or transformed in any way. http://revistes.ub.edu/index.php/JESB http://creativecommons.org/licenses/by-nc-nd/4.0/ Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 152 The mechanical industry has a special role since its development supports other industrial sectors’ expansion as well, that is, its products are intended to equip other sectors through the supply of machinery and equipment. The most common form of technical improvement in the industrialization process is through technological changes, especially the development of machines to build machines. Therefore, the development of the mechanical industry is fundamental in the industrialization process. There is a debate in the economic history literature about the industrialization period in Latin America. Authors from the ECLAC1 tradition think that import-substituting industrialization (ISI) would be the path to economic modernization and development. In their opinion, industrialization is a means of overcoming poverty and reducing the gap between rich and poor countries and boosting independence through self-sustaining economic growth with inward- looking development (Prebisch 1949; ECLAC 1951). Tavares (1964) first formulated ISI as a dynamic process; however, his formulation was based on ECLAC texts and ideas from the beginning of the 1950s, with three basic ideas: a) tendency towards external imbalance is inherent in industrialization on the periphery; b) Latin America’s industrialization consists of import substitution generated by external deficits; c) the process promotes a change in the imports’ composition, but does not reduce their volume. The industrialization process should be accompanied by diversification in the peripheral economies’ productive structure, the domestic market’s size, and the ability to import. In the 1960s, criticism about industrialization’s anti-export bias emerged within ECLAC, proposing export reorientation to improve allocative efficiency and reduce external restrictions (Prebisch 1961; Bielschowsky 1 The Economic Commission for Latin America (ECLA) is one of the United Nations’ Economic Commissions and was funded in 1948 to study Latin America’s economic development. In 1984, the Economic Council changed its name to the Economic Commission for Latin America and the Caribbean (ECLAC). http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 153 2000, 44). In the 1980s and 1990s, Latin American industrialization received its greatest criticism in the face of the period’s problems. The ISI would have promoted low technological development and unequal growth in Latin America between 1965 and 1984. Compared with the rest of the world, Latin America’s economic development process would have added insufficient technical progress, with a low relative participation in the production of capital goods, engineers, scientists, and scientific publications (Fajnzylber 1983, 1990). According to more recent literature, such as Taylor (1998) and Haber (2008), the import substitution process resulted in a closed, technologically backward, and inefficient industrial development, that is, the inward-looking development model resulted in economic system distortions. The history of the company Romi contributes to this discussion and improves the understanding of how Brazil, with strong industrial growth during the import substitution process, but with a low aggregate technological development, generated companies that exported technology- intensive capital goods, and also started these firms’ internationalization process. Romi started out as a small company, an automobile repair shop, at the beginning of the twentieth century. In 1960, the company was already one of the largest lathe producers in the world. Today it is still an important machine tools producer in Brazil with subsidiaries in several countries around the world. The next section describes the industrialization and capital goods industry by investigating the Brazilian economy’s evolution between the 1930s and the 2000s. The third section outlines this study’s empirical contribution to business history. It shows Romi’s growth and internationalization. Original primary sources, mainly collected from the Romi Historical http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 154 Documentation Center and São Paulo’s Board of Trade, were used in the research. The last section summarizes the paper’s main conclusions. Industrialization and the capital goods industry in Brazil Brazil’s GDP grew at about 7% annually from 1940 to 1980 but slowed down to only 2.5% from 1980 to the 2000s (Bacha and Bonelli 2005). This rapid GDP growth until 1980 was led by the manufacturing sector (manly from the 1930s), which grew by 9% annually between 1945 and 1980. The industrial growth cycle coincided with the GDP trend in the post-war period up until the 1980s (Serra 1982). The first period had an accelerated industrial production growth of 9.7% annually from 1947 to 1962. In the period from 1956 to 1961, in the context of the Target Plan (Plano de Metas) in Jucelino Kubitschek’s government, the rate accelerated to 11%. In the second period, between 1962 and 1967, growth slowed down to 2.6% annually. This led to João Goulart’s democratic regime change and Castelo Branco’s military dictatorship from 1964. After institutional reforms during the first military government, the industry’s growth accelerated again (about 13% annually from 1968 to 1973), a period known as the Brazilian economic miracle during the Costa e Silva and Medici governments. A new phase of economic slowdown occurred between 1973 and 1980, even with the Geisel government’s (1974-1979) Second National Development Plan (II Plano Nacional de Desenvolvimento Econômico) and subsequent implementation of large investment projects. The growth rate was about 7%, but higher than the historical average (Serra 1982, 20-44). After the 1970s oil crisis and the expansion of ISI with external debt, Brazil was in a condition of financial crisis at the beginning of the 1980s. The return of democracy in the country in 1985 was coupled with external debt and high inflation. In the 1980s, the Brazilian GDP grew by 2% http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 155 less than the historic average, and the period became known as the lost decade. After several failed price stabilization plans, the 1994 Real Plan solved the inflation problem in the country. Cardoso’s government (1995-2002) expanded the dismantling of state-owned companies built throughout the military government with ISI. In the 1990s, the economy grew at almost the same rate as in the 1980s, around 2.5% (Bacha and Bonelli 2005, 165-167). Table 1 outlines Brazil’s ISI between 1929 and 1964. The table shows total imports, imports by industrial sector, and industrial output’s growth rates. Despite an 8.5% drop in the industrial output’s growth rate, imports dropped sharply (57.6%) and all industrial sectors’ imports declined between 1929 and 1932. According to Celso Furtado, due to the 1929 crisis, Brazil’s economy shifted from a dynamic to an inward-looking, since the coffee defense policy maintained effective demand and the level of employment in the economy’s other sectors. At the same time, the crisis was responsible for an external imbalance that grew with the exchange rate devaluation (which raised imported goods’ prices) and, therefore, internally-created income put pressure on domestic producers (Furtado 2000). The Great Depression in Brazil coincided with domestic market growth, as the industrial sector grew by 57.8% and imports slightly recovered between 1933 and 1938 (despite the 57.3% import growth in the period, 1932 registered the lowest import levels in history). There was a significant import substitution with an increase in industrial production and a 33% drop in imports between 1929 and 1938 (FGV 1969, 29). During the Second World War period (1939-1945), import substitution intensified. Unlike the 1930s, the industry had diversified in the 1940s, with capital goods domestic production and machinery and equipment imports growing by 150% between 1933 and 1938 (Table 1). Total imports fell by 11.6% due to the war, which limited external demand (necessary to generate http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 156 foreign currency to purchase imports) and created import difficulties with other countries at war. Industrial production grew by 40.1% between 1939 and 1945. During this period, the Brazilian industrial sector began substituting machinery and equipment imports more intensively (a 52% drop between 1939 and 1945) and Romi played a significant part in this process, as we shall see in the following sections. Table 1. Brazil – Import Growth Rates by Industrial Sector, Total Imports, and Industry Output Index (Quantity- Based), 1929-1964, (percentage) Industries 1929- 1932 1933- 1938 1939- 1945 1946- 1952 1953- 1961 1962- 1964 Industrial sector imports Non-metallic minerals -64.9 -18.3 66.1 184.4 -80.8 -16.8 Metallurgy -68.6 77.0 18.7 54.7 55.4 -42.7 Machinery and equipment -80.6 150.3 -51.8 434.3 -21.1 -52.2 Electrical materials and communication -71.1 64.9 -52.4 378.2 -42.8 -52.2 Transportation equipment -91.9 394.4 -38.8 455.6 -65.5 -46.7 Wood -31.6 63.3 48.8 17.2 -28.7 -7.6 Furniture -92.3 165.7 -57.9 -32.8 -69.6 Paper -25.1 65.8 4.0 61.4 -24.6 -62.8 Rubber -54.8 -88.4 -93.8 1,296.6 -96.7 -47.8 Leather -77.1 -77.6 15.9 -13.3 -96.1 70.5 Chemicals -30.0 41.1 1.9 332.7 -4.7 -31.0 Pharmaceutical and plastic products -67.7 10.0 52.6 321.9 -76.4 -4.6 Textiles -72.7 9.4 -75.5 327.6 -79.9 -36.2 Clothing and footwear -72.0 4.6 15.1 23.7 -57.4 242.8 Food products -64.5 6.3 -26.2 160.8 -18.5 41.1 Beverages -81.9 70.8 113.7 -37.8 -59.2 -21.7 Printing and publishing -62.2 -2.4 200.9 32.0 10.3 2.3 Miscellaneous products -61.0 -20.8 148.5 37.4 41.8 -23.2 Total imports -57.6 57.3 -11.6 185.7 -11.9 -15.0 Industry output index -8.5 57.8 40.1 82.1 135.9 13.9 Source: author’s calculations from FGV, IBRE/CCN. 1969. Estrutura do Comércio Exterior do Brasil, 1920/1964, vol. 1, 22, 25, 29, 30, 31, 37, 38, 39, 44, 45, 48, 60, 61, 63, 71, 72, 75. http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 157 The period from 1946 to 1952 reflected the post-war economic conjuncture. Dutra’s government promoted exchange rate system changes that significantly impacted ISI. The 1946 exchange rate policy was a fixed exchange rate (18 cruzeiros per dollar), and this rate was overvalued. After a foreign exchange reserves slump, exchange controls were introduced in 1947 (quantitative control for imports), maintaining the exchange rate fixed and overvalued. This system changed in 1948, when the control happened under the previous import licenses’ regime. This new system would remain until 1953. The higher exchange rate favored imports until 1947, and subsequently the licenses favored essential products imports (Fishlow 1972, 42- 47). Between 1946 and 1952, imports grew by 185.7% and industrial production-by 82%. There was a decrease in non-essential consumer goods imports (leather, clothing, footwear, and beverages) but an increase in capital goods and intermediate goods imports, which were essential for industrial investment in that period (Table 1). Therefore, there was no capital goods industry stimulus, but a non-imported products substitution (Fishlow 1972, 47). Industrialization accelerated fast from 1953 to 1961 due to the Target Plan (1957-1961). It was the most intensive import substitution period, with a 12% total import decrease and a 136% industrial output increase. Multiple exchange rates were implemented in the period, which were active measures to encourage balance of payments and industrialization equilibria. Another measure was to create incentives for the flow of foreign capital. Instruction 113 of the Superintendency of Currency and Credit (Superintendência da Moeda e do Crédito), a monetary authority, in 1955 allowed machinery and equipment imports without exchange coverage. Although the fastest growing sectors were those linked to the automobile industry, there were no incentives for capital goods production (which would be observed in the 1960s) (Fishlow 1972, 48-53). In the early 1960s, ISI was showing signs of slowing down. Industrial output http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 158 increased by only 14% and total imports decreased by 15% between 1962 and 1964. Despite the deceleration, the capital goods sector made progress in import substitution as a result of the Target Plan’s investments maturity. As a result of ISI, Brazilian economic growth promoted changes within the industry, as shown in Table 2. In 1939 consumer goods accounted for about 70% of the manufacturing industry’s value, food (23.3%) and textiles (21.8%) being the largest contributors. In 1980, food products accounted for 10% and textiles for only 6.4%. The intermediate and capital goods industries increased their relative shares between 1939 and 1980. For example, machinery and equipment, electrical materials and communication, transport equipment, metallurgy and chemicals had impressive growth between 1930 and 1980 (Table 2). Thus, in the 1970s Brazil had the highest proportion of capital goods in Latin America and close to Western Europe’s (Serra 1982, 6). The capital goods industry in Brazil is related to repairing machines and equipment parts, mainly agricultural machinery. The origin of this industry is ancient, possibly dating back in the colonial period. It is impossible to specify a date, but it was at the end of the nineteenth century that small workshops, with turners, carpenters, blacksmiths2, machinists, and others worked in cities or villages, which had an urban or rural artisan center. Thus, it seems this industry’s origin is related to export-led growth, especially with coffee in southeastern Brazil (Leff 1968; Erber et al. 1974; Lago et al. 1979; Marson 2017). In the 1920s and 1930s, the machinery and equipment firms experienced changes in their output. Most companies founded in the 1920s produced industrial machines, indicating the diversification in the industry, unlike those founded in the previous period, which mostly served the agricultural sector. In the 1920s firms produced machines for weaving, ceramics, bakery, 2 A phenomenon similar to what occurred in the United States in the nineteenth century, where blacksmiths' contribution to the economy appears to have been important, though belittled by scholars (Atack and Margo 2017). http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 159 footwear, pottery, stamping, pasta and bread manufacturing, metallurgy, the textile industry in general, glass factories, motors, and steam boilers. Table 2. Brazil - Manufacturing Industries’ Value, by Industrial Sector, 1939-1980, (%) Industries 1939 1949 1959 1970 1975 1980 Non-metallic minerals 5.3 7.1 6.6 5.9 6.2 5.8 Metallurgy 7.5 9.4 11.8 11.6 12.6 11.5 Machinery and equipment - 2.1 3.4 7.1 10.3 10.1 Electrical materials and communication 5.4 1.6 4.0 5.4 5.8 6.4 Transportation equipment - 2.2 7.6 8.0 6.4 7.6 Wood 3.2 4.2 3.2 2.5 2.9 2.7 Furniture 2.1 2.2 2.2 2.1 2.0 1.8 Paper 1.5 2.2 3.0 2.6 2.5 3.0 Rubber 0.6 1.9 2.9 1.9 1.7 1.3 Leather 1.7 1.3 1.1 0.6 0.5 0.5 Chemicals 6.6 5.3 8.6 10.0 12.0 14.7 Pharmaceutical products 2.7 2.8 2.5 3.4 2.6 1.6 Perfumery, soaps and candles 2.3 1.6 1.4 1.5 1.2 0.9 Plastic products - 0.3 0.9 1.9 2.3 2.4 Textiles 21.8 19.6 12.0 9.3 6.1 6.4 Clothing and footwear 4.8 4.3 3.6 3.3 3.8 4.8 Food products 23.3 20.5 16.4 13.5 11.3 10.0 Beverages 4.3 4.5 2.9 2.3 1.8 1.2 Tobacco 2.3 1.4 1.3 1.3 1.0 0.7 Printing and publishing 3.5 4.0 3.0 3.7 3.7 2.6 Miscellaneous products 1.1 1.6 1.8 2.1 1.9 2.2 Support activities - - - - 1.3 1.7 Total manufacturing industries 100.0 100.0 100.0 100.0 100.0 100.0 Source: author’s calculations from IBGE, 1990. Estatísticas históricas do Brasil: séries econômicas, demográficas e sociais de 1550 a 1988, 386. In the 1930s there was a wider diversification in the production of machines for various industrial sectors and in that period the production of machine tools (such as lathes) began (Marson 2017). With the Second World War, the supply of capital goods from the European and North American markets to Latin America declined. Thus, in this period there was a development in the metal-mechanic industry by means of copying machines installed before the war. As can be seen in Graph 1, equipment imports substitution deepened in the post-war http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 160 period. From the beginning of the 1950s, domestic equipment production was higher than imports. The local capital goods industry provided over 60% of domestic industrial equipment demand in 1949 (Leff 1968, 8). From the 1950s, the main sources of capital goods demand were industrialization and government enterprises (Erber et al. 1974, 16). Although demand from the government sector has been central to the capital goods industry, Brazilian equipment production did not receive any tariff protection until the 1960s (Leff 1968, 132-156; Bergsman 1970). The Brazilian private firms3 in the capital goods industry were competitive with foreign firms in the 1960s (Leff 1968). The result of the national industry’s growth has gone the "economic groups," business organization of legally independent firms, operating in several industrial sectors with great market power, under the control of familiar groups (Leff 1978). The economic groups’ purpose was to satisfy the internal market, although not always taking advantage of the economies of scale. Another characteristic of the economic groups was the close relationship with the government, with the Latin American industrialization policy strategy in their favor (Valdaliso and López 2007, 390-391). In Brazil, this relationship will appear in the Target Plan between 1957 and 1961, and especially in the Second National Development Plan between 1974 and 19794 (Lessa 1998). The only slowdown in Brazil’s equipment production was in the early 1950s and 1960s (1962-1966), following the results of the Brazilian economy between 1947 and 1970. The periods of economic growth were during the Target Plan (1957-61) and the so called Brazilian Economic Miracle (Graph 1). 3 For details on the importance of the Brazilian private industrial enterprise between 1950 and 1980, see Cunningham (1982). 4 For details on government policies for the capital goods industry in Brazil, see Lago, 1979, chap. VI, and Almeida, 1983, chap. 3. http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 161 Graph 1. Brazil – Domestic Production, Imports, and Global Supply of Equipment, 1947-1970, (thousand cruzeiros from 1965/67) Source: author’s calculations from Erber et al. 1974, 28. In the early 1980s, there was a drop in Brazil’s machinery and mechanical equipment production. Between 1984 and 1987 there was a recovery, but production did not return to the pre-1970s levels. Machinery and equipment production experienced a continuous downward trend between 1988 and 1993. After a small recovery, production kept decreasing again from 1995 until 1999. Brazil’s machinery and equipment industry crisis in the 1980s and 1990s became obvious when compared to the machines imports evolution. The exchange rate appreciation between 1994 and 1999 due to the Real Plan promoted a significant imports increase and a clear deterioration of the importance of domestic production to the total supply of machinery (Graph 2). The restructuring of the Latin American economies coupled with commercial and financial opening favored firms’ internationalization in the 1990s. An internationalization process based on import-substituting industrialization took place between 1980 and 1990 in sectors that had 0 1000000 2000000 3000000 4000000 5000000 6000000 7000000 8000000 1945 1950 1955 1960 1965 1970 Domestic production Imports Global supply http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 162 product design capabilities or adaptation and process advantages such as auto parts, metalworking, steel, and textiles (Chudnovsky and Lopez 1999, 12, 20). The Brazilian multinationals were prominent in the domestic market in the 1970s, with a focus on export efforts. These companies began a new cycle in the late 1980s and early 1990s, developing international strategies for expanding their activities (Cyrino and Barcellos 2006, 227). The new multinationals’ expansion from Brazil, India, China, South Africa, and Mexico altered the global corporate context in the 2000s. As previously noted, this new wave of internationalization was motivated by competitive domestic market pressure, combined with strategies to expand and diversify sales, markets, and products (Santiso 2008). As will be seen in the next section, Romi was one of the companies that took advantage of internationalization during this period. Graph 2. Brazil – Domestic Production, Machinery, and Mechanical Equipment Imports and Exports, 1980-2002, in constant 2002 US$ billions Source: author’s calculations from Vermulm 2003, 11. 0 5 10 15 20 25 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 Domestic production Exports Imports http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 163 Romi’s growth and internationalization Romi’s growth, 1930s-1980s Américo Emílio Romi started his own business as a workshop. Romi began operations in Santa Barbara in 1929 with an auto workshop, which produced parts and began receiving orders for farm equipment pieces. The origin of machinery and equipment production in Brazil was linked to the local or regional economic development process. The economic development process in São Paulo state’s interior in the early twentieth century where Romi’s workshop was established is an example of the interconnection between local agriculture and the process of industrial growth and development. The local agro-industrial activities made possible the emergence of business to meet the machinery industry demand. In the 1940s, Romi’s development strategy took a new turn. Due the Second World War’s import interruptions, Romi decided to specialize their production. After achieving success in the field of land cultivation agricultural machinery such as plows, seeders, and others, Romi expanded its production to the most universal industrial machinery: the lathe. Romi took the opportunity of an applicant industrial machinery market and specialized in machine tools production. The specialization in a specific market segment and the development of more intensive products with modern techniques favored Romi’s evolution. Romi has followed the market’s evolution. Along with this evolution, the firm was modernizing and adapting to more complex conditions and technical administration. Romi managed to keep the market adapting to their conditions through constant technical innovation improvements in the production process and their products, making it the leading machine tools producer in Brazil. http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 164 The machine tools market, applicant core Romi, is briefly analyzed here. Machine tools are included in the mechanical and industrial classification. They are machines that are intended to produce new machines by mechanical movement, a set of tools. Lathes, grinders, planers, milling machines, boring mills, drills, saws, shears, presses, and other tools are classified as machine tools. The lathe is one of the oldest tools invented by men that cuts, files, or polishes pieces of wood, metal, or other material machines. As there are several types of lathes, it can be used in a small machine shop, or in a complex industrial organization. Romi launched its business by producing farm machinery and in 1941 started lathe production as well. The machine tools industry has origins in Brazil, with companies continuously producing this type of engine in the 1930s. Before this period, companies produced some machines for personal use. It is difficult to identify who Romi’s customers were over the years, but we can make some generalizations to better understand the lathe market characteristics in Brazil. Its principal customers were the auto parts industries, the tooling (using the lathe in production machines), and the maintenance sectors (such as glass or porcelain cement, using lathe in simple maintenance). Thus, Romi’s lathe production served both markets- customers requiring less complex lathes and customers requiring lathes for specific purposes. The market Romi served over this period was composed of diversified customers, requiring a relative degree of technological complexity in the products manufactured by the company (Marson 2017, 133- 178). In the 1950s, Romi was already an important company in the lathe market in Brazil. We have lathe production data for Brazil between 1955 and 1970 and Romi’s market share ranged from 61% in 1955 to 32% in 19705. 5 The market share was derived by comparing Romi’s lathe production relative to Brazil’s total production (Vidossich et al. 1974, 18-21)) with data between 1955 and 1970 (Table 3). http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 165 Graph 3 shows Romi’s total lathe production and exports between 1941 and 1989 linking the evolution of lathe production with Brazil’s main economic cycles- the Second World War (1939-1945), the Target Plan implemented by Jucelino Kubitschek (1956-1960), the Brazilian economic miracle (1968-1973), the Second National Development Plan (1975-1979), and the lost decade of the 1980s. Despite high GDP and industrial production growth rates during the Target Plan and the economic miracle, there was a large increase in Romi's lathe production only during the Second National Development Plan (production in 1979 was 2.4 times greater than the last year of the economic miracle-1973). Graph 3. Romi’s Total Lathe Production and Exports, 1941-1989 Source: author’s calculations from Romi’s Historical Documentation Center database. The greatest expansion of lathe production was caused by a strong domestic market demand, such as large government investment projects in the 1970s. However, earlier on the domestic market was not strong enough, and Romi began exporting in 1944, first to Argentina, then to 0 1000 2000 3000 4000 5000 6000 7000 8000 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 Total production (units) Export production (units) Target Plan World War II Brazilian economic miracle Second National Development Plan Lost Decade http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 166 other Latin American countries. Before the end of the 1940s, exports were extended to other continents as well. Exports were important for Romi between 1945 and 1949 and represented 45% of the company’s production in 1947. From 1943 to 1947, lathe exports generated more revenue than domestic sales. However, starting 1947 domestic cost increased and without an exchange rate adjustment, exports fell. The company again exported lathes in bulk from the 1960s until the end of the 1970s. The following table shows Romi’s lathe production for internal and external markets between 1941 and 1989. Table 3. Romi’s Lathe Production for Domestic and Foreign Markets, 1941-1989, (Current Dollars) Year Total production (units) Total production ($) % Domestic market (units) % Domestic market ($) % Exports (units) % Exports ($) 1941 46 24,029 100.0 100.0 0.0 0.0 1942 193 101,902 100.0 100.0 0.0 0.0 1943 770 521,610 100.0 100.0 0.0 0.0 1944 899 739,109 99.1 99.1 0.9 0.9 1945 1,098 797,250 90.5 90.4 9.5 9.6 1946 1,660 1,147,990 69.0 81.7 14.8 18.3 1947 1,110 1,015,294 55.0 56.1 45.0 43.9 1948 731 897,807 60.2 66.9 39.8 33.1 1949 798 871,711 78.9 80.9 21.1 19.1 1950 857 1,540,663 100.0 100.0 0.0 0.0 1951 1,379 2,383,155 100.0 100.0 0.0 0.0 1952 942 2,091,711 99.6 99.6 0.4 0.4 1953 880 1,067,229 99.5 99.4 0.5 0.6 1954 1,306 1,568,483 100.0 100.0 0.0 0.0 1955 1,492 1,764,560 100.0 100.0 0.0 0.0 1956 1,629 2,807,718 98.0 96.7 2.0 3.3 1957 1,449 2,668,022 99.8 99.6 0.2 0.4 1958 1,779 2,398,312 99.8 99.9 0.2 0.1 1959 1,237 2,736,298 99.7 - 0.3 - 1960 1,659 3,337,082 99.2 - 0.8 - 1961 1,756 3,809,352 97.9 - 2.1 - 1962 1,979 6,845,183 94.2 - 5.8 - 1963 1,679 5,817,626 81.4 - 18.6 - http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 167 Year Total production (units) Total production ($) % Domestic market (units) % Domestic market ($) % Exports (units) % Exports ($) 1964 1,784 4,510,915 78.0 83.0 22.0 17.0 1965 1,535 4,961,979 72.4 80.3 27.6 19.7 1966 2,011 6,949,129 78.0 83.4 22.0 16.6 1967 1,875 5,090,365 77.5 78.4 22.5 21.6 1968 2,219 5,866,493 80.6 81.1 19.4 18.9 1969 1,905 7,693,854 71.2 85.0 28.8 15.0 1970 1,690 7,290,803 72.5 83.6 27.5 16.4 1971 2,009 9,079,272 73.1 85.8 26.9 14.2 1972 2,346 15,031,350 75.8 91.7 24.2 8.3 1973 2,814 22,543,556 79.1 92.6 20.9 7.4 1974 3,009 28,070,709 87.1 92.7 12.9 7.3 1975 4,317 50,198,560 83.4 89.4 16.6 10.6 1976 4,843 60,900,944 94.3 93.0 5.7 7.0 1977 4,872 62,621,325 93.5 94.7 6.5 5.3 1978 5,762 76,352,719 84.5 91.6 15.5 8.4 1979 6,740 89,789,754 67.8 83.1 32.2 16.9 1980 4,800 66,927,050 53.6 70.0 46.4 30.0 1981 2,547 52,697,318 82.7 83.3 17.3 16.7 1982 2,205 39,699,291 93.0 92.3 7.0 7.7 1983 2,171 22,672,640 64.9 73.4 35.1 26.6 1984 1,939 25,741,230 77.8 82.8 22.2 17.2 1985 2,564 48,438,270 71.7 90.2 28.3 9.8 1986 2,862 79,290,518 87.7 96.5 12.3 3.5 1987 3,042 96,968,300 94.5 98.2 5.5 1.8 1988 2,139 86,640,465 76.9 93.9 23.1 6.1 1989 2,450 85,069,952 63.7 92.9 36.3 7.1 Source: Romi’s Historical Documentation Center database and author’s calculations. Romi has followed the market’s evolution and has provided more advanced machinery and equipment to satisfy businesses’ needs. Until 1960, the company produced 22,000 lathes and exported 1,380. In the 1960s, Romi became one of the largest lathes manufacturers in the world, only behind the Soviet Union’s state enterprise, exporting to 41 countries, including developed countries like the United States. Romi’s export production was small in the 1950s. However, http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 168 exports started to grow again from the early 1960s. We have data on the precise export destination country for the period 1962 to 1967. Graph 4 below shows these countries. Graph 4. Romi’s Lathe Exports by Country, 1962-1967 (Units) Source: author’s calculations from Romi’s Historical Documentation Center. Between 1962 and 1967, Romi largely exported lathes to Latin America (mainly Chile and Mexico) and the United States and Europe (mainly the Netherlands) (Graph 4). In the early 1970s, Romi’s share of exports as a percentage of total lathes output fell again. Since 1976, the trend has been upward reaching a peak of 46.4% in 1980. Despite the oscillation in the 1980s, the share of exports remained high in 1989 (Table 3). Romi has evolved over the years adapting itself to the lathe market conditions. The company developed from a small workshop producing agricultural machinery to the largest machine tools producer in the country and one of the most important producers in the world in the 1960s. Before addressing the subject of Romi's internationalization, the next section will outline the change in its business structure. 0 50 100 150 200 250 300 350 400 450 500 A rg e n ti n a B o li v ia C h il e C o lo m b ia E c u a d o r P a ra g u a y P e ru U ru g u a y V e n e z u e la C o st a R ic a P u e rt o R ic o C a n a d a U S A M e x ic o A n g o la R e p . S o u th A fr ic a G e rm a n D e m o c ra ti c … F e d e ra l R e p u b li c o f… A u st ri a S p a in N e th e rl a n d s E n g la n d It a ly P o la n d S w e d e n Ja p a n L e b a n o n P h il ip p in e s S o u th V ie tn a m P o rt u g u e se A fr ic a R h o d e si a A u st ra li a http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 169 Romi’s changing structure The profits of Romi’s industrial and commercial activity explain the changes in its equity since Emílio Romi founded it as an individual business in 1929 until the company’s transformation into Máquinas Agrícolas Romi Ltda. (a limited liability company) in 1938. The company’s equity increase in 1938 was carried out with Américo Emílio Romi’s resources and the entry of new members. Late in 1954, the business was transformed into Máquinas Agrícolas Romi S.A. (a joint-stock company). In 1955, the incorporated company’s origin was real estate capital, land, and buildings belonging to Américo Emílio Romi that were being leased by the company. In 1956, the equity’s development took place with the company’s own reserves and a revaluation of the company’s assets. Thus, by the end of the 1950s and the early 1960s company’s ownership was entirely in the Romi family. Only in the early 1960s did the company open to foreign investment in order to modernize its production to meet a more extensive and complex market; however, the administrative control still remained in the family (Marson 2017, 165-169). Graph 5 shows the evolution of Romi’s equity between 1930 and 1980 (at constant prices). As we can see, in the 1940s (from 1943) Romi had the first equity growth (Table A.1 in the Appendix). However, it was only in the 1950s that the company increased its equity substantially, becoming a leader in the specific machines and equipment sector. Most interestingly, this growth occurred during Getulio Vargas' government and before Juscelino Kubitschek's government and the Target Plan, which began in 1956. The substantial expansion of Romi's equity was between 1953 and 1956. Between 1957 and 1960, Romi's equity declined in real terms, increasing only in 1961 at the end of the Target Plan investments’ maturity. http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 170 Graph 5. Romi’s Equity, 1930-1981 (in 1961 constant prices, thousand cruzeiros) Note: The equity’s values were deflated by Malan et al. (1977, 516) between 1930 and 1943 and IPA origin - prod. Industrial - FGV index between 1945 and 1981. Source: São Paulo’s Board of Trade and author’s calculations (Table A.1 in the Appendix). After a decline between 1963 and 1965, equity rose once again to a new level with the economic miracle between 1968 and 1969. After an oscillation in the early 1970s and after Romi became a publicly-held corporation with shares traded on the São Paulo Stock Exchange in 1972, equity rose sharply between 1974 and 1978, a period of large investment by the Brazilian government during the Second National Development Plan. Since 1979, equity declined again, reflecting the slowdown of Brazil’s economy in the 1980s, but Romi's equity structure had already reached a very high level in that period. Romi’s Internationalization, 1990s-2010s Romi’s machine production experienced high growth rates from 1950 to 1970. The domestic market was booming in the 1950s, but in the 1960s and 1970s, the export growth rate was higher than total machine production growth. The 1980s changed this growth trend, total machinery, 00000 500000 1000000 1500000 2000000 2500000 3000000 3500000 4000000 4500000 5000000 1930 1940 1950 1960 1970 1980 Romi's equity 1929- Garage Emilio Romi (individual business) 1938 -Máquinas Agrícolas Romi Ltda. (limited liability company) 1954- Máquinas Agrícolas Romi S.A (joint-stock company) 1962- Indústrias Romi S.A. - new name (joint-stock company) 1972- Indústrias Romi S.A. A publicly-held corporation with shares traded on the São Paulo Stock Exchange http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 171 and exports production dropped significantly. The 1990s and 2000s machine production growth deteriorated even further. Table 4 shows Romi’s machine production between 1950 and 2010. Table 4. Romi’s Machine Production, 1950-2010 Total Machine Production Exported Machine Production Year Units Average unit per year Growth rate per year Units Growth rate per year % Exported 1950 8,200 1,380 10.4 1,320 0.5 16 1960 22,000 1,900 6.4 1,380 13.7 6 1970 41,000 5,100 8.4 5,000 10.8 12 1980 92,000 2,900 2.8 14,000 3.6 15 1990 121,000 1,700 1.3 20,000 2.3 17 2000 138,000 1,200 0.8 25,000 1.2 18 2008 147,000 - 1.0 27,400 - 19 2010 150,000 - - - - - Source: author’s calculations from Romi (2017b) Romi's production growth rate is in line with the Brazilian economy’s growth rate trend. Perhaps Brazilian economy’s slow growth6 motivated Romi to start investing abroad in the 1990s. With the decreasing barriers to international trade and financial regulations in the 1990s, firms in developing countries faced increased competition in their local markets. However, they were more likely to connect to international production networks because production and operations were organized according to the globalization production, that is, those years were the era of productive globalization (Fleury and Fleury 2011, 25). Romi's internationalization process is linked to the export movement the company started in the 1940s. Through exports, Romi partnered with companies in the international market through technology transfer. The internationalization process was originated with the exchange of technology and exports. For exports, Romi used distributors, a choice that lowered business risk. In addition, subsidiaries abroad were necessary due to the specific machines and 6Globalization’s impact on the Brazilian economy in the 1990s was complex and mixed. For a good approach on the subject, see Baumann (1996). http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 172 equipment market in which the company operated. Although Romi did not have foreign production before the 1990s, the company needed to provide technical assistance services to sell its machinery and equipment. Thus, “overseas subsidiaries, then, were basically for warehousing, pre-sale, sale and technical assistance. The company had these subsidiaries in the US, Argentina and Uruguay markets and was implanting another one in Germany” (Veiga and Rocha 2003, 169). Table 5 shows the evolution of Romi's business abroad. Romi's effective internationalization process occurred in the 1990s when the company began operations in the American market in Chicago. Table 5. Romi’s Business Abroad Year Name City Country 1998 Romi Machine Tools Ltd. Erlanger, Kentucky USA 2001 Romi Europa GmbH Groß-Gerau (next Frankfurt) Germany 2008 Romi Italia s.r.l. Turin Italy 2008 Sandretto Industrie s.r.l., Grugliasco and Pont Canavese (next Turin) Italy 2009 Lazzati s.p.a. (agreement) Milan Italy 2010 PFG s.p.a. (agreement) Italy 2011 Burkhardt + Weber Fertigungssysteme GmbH Reutlingen (next Stuttgart) Germany Source: author’s calculations from Romi (2017b) In 1998, the company transferred its operations to Erlanger in Kentucky, a region of high machine tool producers concentration, founding Romi Machine Tools. In 2001, a subsidiary, Romi Europa GmbH, was established in Germany to support the European market’s distribution network. To support the company's activities in Europe, Romi Italia s.r.l. was established in 2008 in Turin, Italy. That same year Romi acquired assets from Sandretto Industrie s.r.l., a plastic injection molding machines manufacturer, with plants located in Grugliasco and Pont http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 173 Canavese in the Turin region of Italy. Romi continued its expansion in Italy and signed an agreement with Lazzati s.p.a., located in the region of Milan, for boring machines production, and with PFG s.p.a. for the manufacturing of Mobile Column Machining Centers. In 2010 and 2011, Sandretto and Romi launched products in Germany, France, and the United Kingdom. In that last year, Sandretto México’s activities began, operating with the Romi and Sandretto brands in the country. Also, in 2011 Romi acquired Burkhardt + Weber Fertigungssysteme GmbH, a German company which has been producing machine tools since 1888 (BW 2017). All these initiatives have expanded the company's global market operations (Romi 2017b). Romi has a net of distributers located in all continents, and subsidiaries for trading and services located in North America (the United States and Mexico) and Europe (Italy, Germany, UK, Spain, France). Table A.2 in the Appendix summarizes Romi's industrial plants and sales subsidiaries around the world as of 2017. Romi currently counts on eleven factories (nine in Brazil and two in Germany) with a production capacity of approximately 3,450 machines per year. Its main markets are machine tools (metal cutting machines), such as turning centers, computerized numerical control (CNC) lathes, engine lathes and machining centers, and plastic processing machines (plastic injection moulding machines and blow moulding machines) (Romi 2017c). Romi has about 6,000 active customers in more than 60 countries, operating in the automotive, agricultural machinery, capital goods, consumer goods, tooling, hydraulic equipment, wind energy, and other industries. About 75% of the company's turnover comprises of conventional lathe sales, CNC lathes, Machining Centers, heavy and extra heavy horizontal and vertical lathes, turning centers, and boring machines. About 15% of its revenue comes from the plastic injection molding industry (Romi 2012, 6-9). http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 174 Conclusions This article examined the history of Romi, an important producer of capital goods in Brazil. We showed its growth between 1930 and 1980 in the context of the Brazilian economy, and its relation with the capital goods ISI, specifically the lathe. We have seen that the main period of its growth was tied to government investment in large projects under the Second National Development Plan between 1975 and 1979. With the changes in the Brazilian economy in the 1980s and 1990s, the company had to adapt itself, aiming to promote foreign investments, when its internationalization process was effective. Romi was concerned about serving the foreign market early, intensified by the need to improve the products that the capital goods industry demanded. The companies’ exports can be seen as an indicator of the production process and the product’s efficiency, that is, the company is internationally competitive. Romi’s case contrasts with the literature’s pessimistic view on Brazil’s ISI. Romi developed characteristics to meet the external market in the face of policies aimed at replacing imports. Thus, within the domestic market’s closed industrial structure, there were cases of companies that made export efforts shortly after its founding, mainly because they specialized in a technology-intensive sector and needed external contact for their development. Although Romi was an exceptional case, it shows ISI’s complexity in Brazil. At the macroeconomic analysis level, it seems that this development model has resulted in little effort in the relative generation of technology. At the micro level of business history, Romi is an example of a successful company in a technology-intensive sector, such as capital goods. References Almeida, Lopes de, Fernando. 1983. A expansão da indústria de bens de capital: fatores determinantes. 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Rio de Janeiro: Finep. Fajnzylber, Fernando. 1983. La Industrializacion Trunca de America Latina. México-DF: Centro de Economia Transnacional. Fajnzylber, Fernando. 1990. “Industrialización en América Latina: de la ‘Caja Negra’ al ‘Casillero Vacío’: Comparación de Patrones Contemporáneos de Industrialización." Cuadernos de la CEPAL, 7-176. Santiago: United Nations. ECLAC. http://repositorio.cepal.org/handle/11362/27955 FGV, IBRE/CCN. 1969. Estrutura do Comércio Exterior do Brasil, 1920/1964. Rio de Janeiro: FGV. Fishlow, Albert. 1972. “Origens e Consequências da Substituição de Importações no Brasil.” Estudos Econômicos 2 (6): 7-75. Fleury, Afonso, and Maria Tereza Leme Fleury. 2011. Brazilian Multinationals: Competences for Internationalization. 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A Indústria Brasileira de Bens de Capital: Origens, Situação Recente e Perspectivas. Rio de Janeiro: FGV. Leff, Nathaniel. 1968. The Brazilian Capital Goods Industry, 1929-1964. Cambridge: Harvard University Press. Leff, Nathaniel. 1978. “Industrial Organization and Entrepreneurship in the Developing Countries: The Economic Groups.” Economic Development and Cultural Change 26 (4): 661-675. Lessa, Carlos. 1998. A Estratégia de Desenvolvimento, 1974-1976. São Paulo: Universidade Estadual de Campinas. Malan, Pedro, Regis Bonelli, Marcelo de Paiva Abreu, and José Eduardo de C. Pereira. 1977. Política Econômica Externa e Industrialização no Brasil (1939/52). Rio de Janeiro: IPEA/INPES. Marson, Michel Deliberali. 2017. Origens e Evolução da Indústria de Máquinas e Equipamentos em São Paulo, 1870-1960. São Paulo: Annablume/Fapesp. 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São Paulo-SP. Santiso, Javier. 2008. “The Emergence of Latin Multinationals.” CEPAL Review 95:7-30. http://revistes.ub.edu/index.php/JESB http://repositorio.cepal.org/bitstream/handle/11362/30088/001_es.pdf?sequence=2&isAllowed=y http://www.romi.com/en/romi-worldwide/ http://www.romi.com/empresa/institucional/linha-do-tempo/ http://www.romi.com/en/company/the-company/ Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 177 Serra, José. 1982. “Ciclos e Mudanças Estruturais na Economia Brasileira do Após-guerra.” Revista de Economia Política 2 (6):5-45. Tavares, Maria da Conceição. 1964. “The Growth and Decline of Import Substitution in Brazil.” Economic Bulletin for Latin America 1:1-59. New York: United Nations. ECLAC. Available: http://repositorio.cepal.org/handle/11362/10087 Taylor, Alan M. 1998. “On the Costs of Inward-Looking Development: Price Distortions, Growth, and Divergence in Latin America.” The Journal of Economic History 58 (1): 1-28. Valdaliso, Jesus Maria, and Santiago López. 2007. Historia Económica de la Empresa. Barcelona: Crítica. Veiga, Luis Filipe Agapito da, and Angela Rocha da. 2003. “Expansão Internacional de Grandes Empresas: Estabelecendo Relacionamentos no Mercado Internacional.” In As Novas Fronteiras: A Multinacionalização das Empresas Brasileiras, edited by Angela da Rocha, 163-210. Rio de Janeiro: Mauad. Vermulm, Roberto. 2003. “A Indústria de Bens de Capital Seriados.” CEPAL 1-45. Access online http://www.cepal.org/pt-br/publicaciones/28375-industria-bens-capital-seriados Vidossich, Franco, Francisco Almeida Biato, Eduardo Augusto de Almeida Guimarães, and Maurício Jorge Cardoso Pinto. 1974. A Indústria de Máquinas-Ferramenta no Brasil. Brasília: IPEA. http://revistes.ub.edu/index.php/JESB http://repositorio.cepal.org/handle/11362/10087 http://www.cepal.org/pt-br/publicaciones/28375-industria-bens-capital-seriados Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 178 Appendix Table A.1. Romi’s Equity Evolution, 1930-1981 (1961 constant prices, cruzeiros) Years Romi (Malan deflator) Romi (FGV deflator) Years Romi (Malan deflator) Romi (FGV deflator) 1930 74,105 - 1958 378,308,824 378,389,694 1932 68,895 - 1959 351,537,335 351,319,429 1933 67,067 - 1960 284,985,163 284,876,038 1934 3,201,333 - 1961 610,000,000 610,000,000 1935 6,196,129 - 1962 1,035,091,664 1,062,507,211 1936 5,799,517 - 1963 790,297,806 789,659,133 1937 6,406,381 - 1964 923,145,933 923,534,471 1938 7,679,104 - 1965 1,144,120,294 1,143,943,615 1943 22,286,510 - 1966 1,145,705,394 1,095,979,916 1945 17,811,573 17,269,476 1967 1,313,098,168 1,220,477,195 1946 26,001,613 23,998,392 1968 1,255,407,562 1,112,129,093 1946 55,322,581 51,060,409 1969 2,080,535,037 1,838,622,506 1947 61,801,802 61,782,647 1970 1,810,673,431 1,605,361,222 1947 92,702,703 92,673,970 1971 1,845,873,584 1,631,756,053 1948 102,782,534 102,835,886 1972 1,728,183,572 1,528,926,516 1950 94,639,338 94,521,319 1973 2,136,679,320 1,901,819,553 1951 79,661,579 79,654,224 1974 1,647,819,660 1,469,867,594 1952 74,104,938 74,360,769 1975 2,588,825,636 2,276,094,267 1953 141,235,294 141,709,422 1976 - 2,867,212,866 1954 195,203,252 195,572,214 1977 - 2,060,029,378 1954 219,603,659 220,018,740 1978 - 4,659,557,421 1955 258,635,548 257,700,617 1979 - 4,293,241,675 1956 472,924,242 472,591,250 1980 - 3,102,719,570 1957 442444717 443,637,558 1981 - 2,238,646,649 Note: The values of equity were deflated by Malan et al. (1977, 516) and IPA origin - prod. Industrial - FGV index. Source: author’s calculations from São Paulo’s Board of Trade. http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 179 Table A.2. Romi around the World, 2017 Name City Country Controlled companies Romi Machine Tools Dealers Dealers of machines for plastic Indústrias Romi Santa Barbara do Oeste Brazil x São Paulo ABCD São Paulo Brazil x Ribeirão Preto Ribeirão Preto Brazil x Rio de Janeiro Rio de Janeiro Brazil x Belo Horizonte Belo Horizonte Brazil x Salvador Salvador Brazil x Curitiba Curitiba Brazil x Porto Alegre Porto Alegre Brazil x Bromberg Y CIA S.A. Montevideo Uruguay x Favel Argentina S.A. Buenos Aires Argentina x x Favel Argentina S.A. Córdoba Argentina x x CNC Service Santiago Chile x Maq & Herr ( Máquinas y Herramientas ) Asunción Paraguay x Cormaq S.A. Santa Cruz de la Sierra Bolivia x Interlink-18 S.A. Lima Peru x Compuengine Cia. Ltda. Quito Equador x x Inversiones VC Tecnología S.A.S Bogotá Colombia x Herramientas Técnicas Hertec RRH, C.A Caracas Venezuela x EB Servi Tecnologia Plástica, C.A. Caracas Venezuela x Grupo Index S.A. Ciudad de Panamá Panamá x MR2 Representaciones S.A. San José Costa Rica x MR2 Representaciones S.A. Nicarágua x MR2 Representaciones S.A. Honduras x MR2 Representaciones S.A. El Salvador x MR2 Representaciones S.A. Guatemala x Suplextrade Comercio Exterior Ltda. Cuba x x Inter Tools S.A. DE C. V. (Máquinas CNC) Puebla Mexico x Krotarkmex S.A. DE C.V. Cidad del México Mexico x EM Maquinados S.A. DE C.V. (Máquinas CNC y Convencionales) Monterrey Mexico x People Tech Machine Tool Sales & Service (Northern California & Northern Nevada) Santa Clara USA x http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 180 Name City Country Controlled companies Romi Machine Tools Dealers Dealers of machines for plastic Machine Toolworks Inc. (Oregon, Washington (Flat Bed CNC Lathes, Oil Country CNC Lathes)) Tukwila USA x Smith Machinery CO., INC (Utah, Wyoming, Idaho, and Montana) Salt Lake City USA x WD Distributing (Arkansas, Oklahoma & Southern Kansas) Kellyville USA x Romi Machine Tools, Ltd Erlanger USA x Jones Machinery INC. (Kentucky, Southern Ohio and Southern Indiana) Cincinnati USA x Titan Machinery Sales (Illinois, Northern Indiana and Eastern Iowa) Lake Zurich USA x Alternative Machine Tools, LLC (Wisconsin and The Upper Peninsula of Michigan ) Dousman USA x PEAK EDM, INC. (Michigan) Wixom USA x Northeast Precision Machinery (Eastern Pennsylvania) Warminster USA x Rice Machinery INC. (Rhode Island, Massachusetts, Connecticut, New Hampshire and Maine) Cranston USA x Mega Industries INC. (Canada Provinces: Ontario, Quebec, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador) Burlington Canada x Machine Toolworks INC. - Western Canada (Flat Bed CNC Lathes, Oil Country CNC Lathes) Edmonton Canada x Libcor Industrial Machinery (PTY) LTD Johannesbur g South Africa x CNC Computer Numerical Control PTY LTD Mitcham Australia x CNC Services Ltd Auckland New Zealand x El-Ram Oils & Accessories LTD. Afula Israel x Baranok Takim Tezgahlari Malz. Mak. Hirdavat San. T.C. LTD.STI Konya Turkey x Solver Engineering Company Voronezh Russia x Grosver Group LLC Minsk Belarus x M.Koskela O.Y Kokkola Finland x M+E Szerszámgép Kereskedelmi Kft Budapest Hungary x CNC Invest SK S.R.O Trencin Slovakia x NTM Sp. Z.o.o. Gliwice Poland x Capro Werkzeugmaschinenhandel und Service Gmbh Kemeten Austria x CNC Resitive D.O.O. Ljubljani Slovenia x CNC Invest S.R.O. Malešice Czech Republic x http://revistes.ub.edu/index.php/JESB Volume 3, Number 2, 151-182, July-December 2018 doi:10.1344/jesb2018.2.j050 Online ISSN: 2385-7137 COPE Committee on Publication Ethics http://revistes.ub.edu/index.php/JESB Creative Commons License 4.0 181 Name City Country Controlled companies Romi Machine Tools Dealers Dealers of machines for plastic Romi Itália SRL Gossolengo Italy x Steiner Werkzeugmaschinen AG Gränichen Switzerland x Burkhardt+Weber Reutlingen Germany x Romi Europa GmbH Groß-Gerau Germany x Eritec B.V. CNC Machines Hengelo Netherland x Mema Machinery & Tools Londerzeel Belgium x Romi France SAS St Priest France x Romi Máquinas España Barberà del Vallès Spain x Mecatool Technologies S.L. - Division de Hertec Group Barcelona Spain x Romi Machines UK Limited Rugby UK x Cortimetal Águeda Portugal x Source: author’s calculations from Romi (2017) This is an Open Access article distributed under the terms of the Creative Commons Attribution-Non-Commercial-No Derivatives License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits non-comercial re-use and distribution, provided the original work is properly cited, and is not altered or transformed in any way. http://revistes.ub.edu/index.php/JESB http://creativecommons.org/licenses/by-nc-nd/4.0/