fesanco (pdf) - Babson College

profitability. Who better to do this job than Rolando Ramos, who accepted a part-time
position in the company?
With Rolando and Rene onboard, the Mejillones project got off to a good start, with
solid technical and financial planning.
New opportunities were on the horizon. Rolando kept in touch with colleagues at
Agunsa who were working in Ecuador and Peru. They told him that the main ports in
those countries were going to be tendered soon (see Exhibits 7 and 8). Rolando and
Miguel visited people in those countries to see if there were any opportunities for
Fesanco and to look for local partners. Since CPM was a subsidiary of the Codelco
Mining Company, the largest copper mine in the world and the main user and customer
of the Port of Mejillones, Miguel also kept thinking about the possibility of making a
foray into that industry (see Exhibits 9 and 10).
The Mejillones project ended in September 2002, a total success in terms of Ultramar’s
requirements for timing, budget, and quality, and the crane was officially handed over to
the customer. Top executives from Ultraport, CPM, and Codelco, as well as local
authorities and the head of Gottwald for Latin America, attended the inauguration
ceremony in the Port of Mejillones. After the ceremony, Miguel looked out at the sea of
Mejillones, slashed by the silhouette of the newly assembled crane, and thought about
the possibilities for Fesanco. He asked himself, “How can we take advantage of
opportunities without enough money to invest? Leaving the country to market our
services is difficult, and the mining industry is very competitive in Chile. On the other
hand, the economic crisis could end at any time, and this may be a good time to expand.
But I’m not sure my European partner feels the same way.”
His thoughts were interrupted by a phone call. He heard a familiar voice with a German
accent. “News travels fast,” he thought, as he said hello to Andreas Moeller. Andreas
congratulated him on the finished project and then posed the following question: “Do
you remember that several years ago I suggested the possibility of creating subsidiaries
in Chile, Peru, Brazil, and Ecuador? Well, my friend, don’t you think it’s time to untie
your boat and let sail it out to sea, with your destination being to create Gottwald Peru
and Gottwald Ecuador?”
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