NEC Corp. plans to increase sales in Brazil by 30 percent this year, boosted by rising demand as the country prepares to host the World Cup and the Olympics, according to the company's top executives in Latin America.
"Our new development area will focus in providing for the basic infrastructure sector in the country, both public and private," Herberto Yamamuro, chief executive officer of NEC's Brazilian unit, said Friday in Sao Paulo. The company aims to reach sales of $325 million in the South American country this year, he said.
NEC, Japan's biggest telecommunications equipment maker, expects Brazil will be its fastest-growing market this year, followed by China, said Tadashi Ugajin, chief executive officer for Latin America.
After growing 7.5 percent last year, the fastest pace in more than two decades, Brazil's economy will expand 4 percent in 2011, according to the quarterly inflation report last week by the country's central bank. Rising personal income and infrastructure spending ahead of the 2014 World Cup and the 2016 Olympic Games are making Brazil a priority for NEC, the executives said.
For this year, NEC expects to expand 20 percent on average throughout Latin America, Ugajin said.
A lack of workers in Brazil is the major challenge for NEC to meet its expansion targets this year and 2012, according to both executives.