20 years making tubing and fittings

Simon Abuhab, the man chosen as "Industry Leader of the Year" runs Incodiesel, the company that celebrated its 20th anniversary in 1982 and manufactures tubing and fittings of various kinds for the automotive industry.

Simon Abuhab, "Industry Leader of the Year" for Diadema, according to an election held under the sponsorship of the Regional Office of the Center for Industry of the State of São Paulo (Ciesp), is a businessman connected to the autoparts industry and President of Incodiesel Indústria e Comércio de Peças para Diesel Ltda, a company which has been producing tubing for the automotive industry for the last 20 years.

He is a member of the Ciesp Regional Council of Diadema/SP and in addition to his company activities he is involved in local community work. Thereby he is not only well connected with the local companies but also with the public organs within the region. He entered the industry in the 60s without any previous specialization, practically starting from scratch and ended up by developing a company that is solid, with its own capital and a product that commands market respect.

As to his choice as "Business Leader of the Year" for Diadema, Simon said that this honor must be shared with all the small and medium companies in the region which he and Renato Cury of Panex, who received the same title for São Bernardo do Campo, represent. In his thank you speech during the event on February 25 th , Abuhab professed a message of union, stating that "only through the effort of all - employers, employees, liberal professionals and the Government - will it be possible to plan and execute the development we wish for Brazil ".

The Company

Incodiesel Indústria e Comércio de Peças para Diesel Ltda nowadays produces every type of tube and fitting, in high, medium and low pressure versions for the automotive sector. The company was founded in October 1962 by its present President, at the time consisting of only one room. By working 20 hours a day, he says, we soon managed to move to a small 35m² store in the Indianopolis District of São Paulo, where we only had two employees and the registered capital of Cr$ 500.00".

The company has now been at its present premises in Diadema and its built-up area covers 4,127 m² and is equipped with modern equipment, with employees now totaling 150, with a registered capital of Cr$ 50 million.

Simon says that his policy has always been to invest his own resources in the company, which explains the company's solid financial situation. As to the components that he manufacture he stresses a constant policy of pursuing quality and responsibility. One outcome of this guideline is the fact that in the last two years Incodiesel has not had a single outside rejection of the parts it has sold according to its President.

The company balances its sales between deliveries to the spare parts companies and the automobile assemblers. Exports are still at an early stage, says Abuhab. However he points out that he is already selling reasonable amounts to trading companies, which export his products directly or indirectly. Latin America , Africa , West Germany , Syria , Finland and the U.K. are the main customers per volume of business.

To the head of Incodiesel the export market is, at this moment, very difficult due to the overall world economic crisis, during which everyone looks to overseas markets as a solution. Even more, we still have to face the lack of confidence in our products in the international markets although at this point our products are well within the standards offered by industrialized countries. Overseas operations are important, he believes, "because our industry is beginning to build up an overseas reputation".

So far the company has had no problem with demand retraction - Abuhab stresses that no great personnel cuts were required and that he still has every customer he has obtained in these 20 years. He adds that in difficult times "we have to be much more skilled, more agile, and to offer that extra incentive". That may at least provide us with an extra dividend from the crisis.

It is also his opinion that every intelligent entrepreneur should think of a pyramid structure: you cannot produce if there are no buyers. "Therefore we must fight for a more equitable income distribution, we must be, above all else, patriots. When capital remuneration is greater than labor remuneration, then the latter loses interest, and it is work that will build up the GDP," he concludes.

March, 1983