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Made in the Dominican Republic
The government is promoting the Dominican brand as a world export market leader.
More than 3,000 products made in the Dominican Republic were exported worldwide last year, and the Dominican brand is internationally identifiable through a range of top-selling products that includes Brugal rum and Arturo Fuentes cigars.
In recent years, the D.R. has been declared the top-ranking cigar exporter to the U.S., the number one exporter of organic cocoa and organic bananas to Europe, and the world’s fifth-largest supplier of beer and sugarcane rum. It is also the tenth-largest footwear exporter and the 22nd-largest exporter of apparel and textiles to the U.S. That’s not a bad record for a Caribbean island with a population of nearly 10 million.
“The label ‘Made in the D.R.’ is seen as something positive, something that represents quality and a product that is made with expertise, passion and devotion by talented people,” says Eddy Martínez Manzueta, the secretary of state and executive director of the Dominican Republic’s Center for Export and Investment.
Martínez’s definition certainly applies to Gruppo Epoca, a Dominican menswear company that, over a 30-year period, has established itself in the international marketplace as the designer and manufacturer of high-quality tailored suits.
The “Made in the D.R.” label is also relevant in the case of Ciramar, a Dominican shipyard that specializes in the construction and conversion of international merchant vessels, barges, yachts and maritime port equipment. It is currently repairing the world’s largest floating gambling casino and is constructing a five-star floating hotel designed for fishing vacations.
“The label ‘Made in the D.R.’ is seen as something positive, something
that represents quality and a product that is made with expertise,
passion and devotion by talented people.”
Eddy Martínez Manzueta
Secretary of State and Executive Director, The Center for Export and Investment
In the agribusiness sector, the Dominican brand is present internationally through the activities of Fersan. A family-run company established in 1967, Fersan produces and sells more than 100,000 tons of fertilizers throughout the Caribbean and has won several awards, including “Top brands República Dominicana” in 2008.
Fersan was the first company in the D.R. to begin exporting food sacks, and now produces more than 45 million sacks for the transportation of sugar, coffee, onions and other agricultural products.
“Over the years, we have been committed not only to selling our products, but also to providing support and technical assistance and fostering strong relations with our customers,” says Fernando Viyella, Fersan’s president. “Our steadfast commitment to world-class products and services has earned us the confidence of our clients, not only in the D.R. but also in the rest of the world.”
Fersan is constantly innovating, he says, using the most advanced technology to give its clients the best tools and providing financial assistance and know-how to improve their harvest potential.
“Fersan is a name that represents quality,” says Luis Viyella, Fernando’s son and the company’s executive vice president. “Don Fernando has always been meticulous about quality, a quality that always exceeds our customers’ expectations.
“Fersan was the first company in this country to offer research and development and technical assistance to its clients.”
Fernando Viyella wishes to see more foreign investment devoted to the D.R. “We have macroeconomic stability, good investment laws, good people and fabulous weather all year. There are many Dominican businessmen and -women who are interested in entering joint ventures with foreign investors. Our business environment is just as fertile as our land.”
The D.R.’s Center for Export and Investment is intent on expanding recognition of the “Made in the D.R.” brand further. “What we are trying to do is increase the number of Dominican companies that are globally oriented and can compete worldwide in terms of quality, brand and volume,” says Martínez.
One of the measures the center is promoting to achieve worldwide recognition is the transfer of knowledge between Dominican companies operating in the same sector to enable producers to compete more effectively internationally.
“We are creating clusters in the agriculture and manufacturing sectors, as well as clusters with producers of shoes, and for growers of mangos, avocados and pineapples,” says Martínez. “This will help small- and medium-size companies work together with larger companies to create a strong supply chain.”
Tailor Made
When you are talking haute couture, Paris, Milan and New York may spring to mind. Santo Domingo in the Dominican Republic — not so much. But indeed, one of the world's top menswear designers is based in this Latin American capital.
That designer is Hipólito Peña, the founder of Gruppo Epoca. The world renowned menswear firm has one of the most modern factories in Latin America. Yet it still relies heavily on master hand tailors, trained by the best in the business, who know garment — making inside and out.
Under the Hippólito label, Gruppo Epoca produces both ready-to-wear and made-to-order suits. The latter have been designed for such international luminaries as Placido Domingo, Albert II, Prince of Monaco, President George H.W. Bush and many Latin American heads of state.
While Hippólito haute couture suits are considered among the best in the world by fashionistas, Gruppo Epoca actually made its initial mark by revolutionizing the guayabera shirt. By using high-quality fabrics in an assortment of hues, the company made this traditional four-pocket Latin American staple popular once again.
Whether making suits or guayaberas, what distinguishes Gruppo Epoca from so many other textile firms is the personal touch. It starts at the top. Hipólito Peña has been designing for more than 30 years, and his passion is undeniable. He actually began sewing in elementary school and in over five decades, he’s never missed a stitch. He has seen Gruppo Epoca grow from an unknown brand into a highly respected company.
Now, Gruppo Epoca is going global. Peña plans an extensive international expansion within the next five years. By the end of 2009, the Hippólito brand will have boutiques in New York, Miami and Puerto Rico. Stores will offer suits, guayaberas and a new womenswear resort line designed by Peña’s daughter. Another 200 stores will open in the U.S., Latin America, Europe and Asia by 2014.
“Our clients are aware of our commitment to deliver the best service, and we are constantly improving our operations.”
Nelson Crespo. CEO, OPETRASA
OPERADORA DE TRANSPORTE, SA. (OPETRASA) was founded by engineer Nelson Crespo, who began working in the transportation industry in1983. Since then, OPETRASA’s mission has been to offer fuel-transportation services all over the country, following the safety rules determined by the industry. The company’s strategy is founded on its competent personnel and use of qualified equipment, which helps ensure the highest efficiency levels, guaranteeing client satisfaction and business effectiveness.
OPETRASA’s high standard of efficiency, safety and customer service allows the company to meet the increasing demands of petroleum transport, which is a prime concern of Nelson Crespo, CEO. OPETRASA operates a modern fleet of trucks with the capacity to transport between 6,000 and 14,000 gallons of fuel, including liquid fuel, diesel, gasoline and gas oil, from refineries and terminals to airports, businesses and gas stations across the country.
In doing so, it has to meet exacting international standards of regulation, tracking the total number of gallons transported, the kilometers traveled and the time taken.
The company, which has a close working relationship with Esso, also provides transportation services for other clients on a case-by-case basis, including clients who provide electrical generation, and it is planning further diversification.
On three occasions, OPETRASA has been a top-ten finalist among 200 competing countries as Hauler of the Year for Worldwide Efficiency by Esso Standard Oil, the Exxon Mobil subsidiary.
The RJS Group is spearheading a giant project to produce fuel and electricity from biomass and help impoverished farmers.
The Dominican Republic is on its way to becoming the biggest producer and exporter of ethanol in Central America and the Caribbean.
Two projects involving an investment of $385 million are in the process of being finalized by the RJS Group Dominican Republic, a Dominican-American corporation with European partners.
The biggest, the Fenix Project, is located in the northwest region of the Dominican Republic, and the company has a 40-year concession to develop the production of biofuel in that area.
The project is centered on producing ethanol through an agro-energetic crop of sweet sorghum that will be grown on 104,500 acres of land, yielding 115 million gallons of ethanol a year, along with an exportable power generation of more than 50 megawatts. The second project will be a dehydration plant with a production capacity of 158,500 gallons per day.
“We are very enthusiastic about the two projects and excited to
be spearheading the Dominican Republic’s efforts to lead the region in ethanol production.”
Rafael Fernandez,
Chief Executive, RJS Group
“We are very enthusiastic about the two projects and excited to be spearheading the Dominican Republic’s efforts to lead the region in
ethanol production,” says Rafael Fernandez, the RJS Group’s chief executive.
“We will be seeking investors shortly under a structure that we feel is financially attractive, especially to strategic investors with experience or interest in the region. Initially, we are raising $350 million for the Fenix project and $35 million for the dehydration plant project.”
Through these projects, the RJS Group is seeking to foster sustainable growth, to create wealth and employment and to introduce capital investment that will form a cluster of bioproduct industries.
“The Dominican Republic is unique in several ways,” says Fernandez. “The country’s geographical position and the quality of the land give it the ability to grow different types of crops for energy use. Given these factors, sorghum is an ideal crop to grow throughout most of the year in different soil conditions. This helps to lower production costs and gives local communities an opportunity to monetize their land holdings.”
Fernandez says the second phase of the project involves creating a blueprint for the organization’s technologies and production and distribution systems. “Particular attention will be paid to the fine details of the agro-industrial system to ensure that it will be a leader in products, services and cost.”
To meet its goals in project development and the organization of a technical and economic feasibility study, Fernandez says the RJS Group has gathered a team of multidisciplinary professionals from around the world.
“Trials of a variety of sweet sorghum and various agronomical techniques have been carried out using management tools such as unique simulation models developed to conduct the respective cost-benefit analysis.
“We have been supported by one of the best engineering teams in the business in benchmarking and testing the parameters of this synchronized and integrated system,” he says.
A Brazilian company, P.A. Sys Engineering and Systems, joined RJS Group as a strategic partner in developing the feasibility studies by adding its expertise about bioenergy.
Trials with some current commercial sorghum seeds are being carried out, and seed-breeding programs are being established to guarantee their improved yields and availability.
P.A. Sys will remain with RJS Group until the effective implementation of the agroindustrial complex, which is expected to begin ethanol and electricity production by March 2012.
The first phase of the industrial plant engineering and construction contract is scheduled to be signed by March next year, and 32,500 acres of commercial sweet sorghum fields should begin to be planted toward the end of 2011.
The project is expected to reach maturity by 2015. It is also expected to directly and indirectly create 14,500 jobs.
The RJS Group’s plans include important social elements.
“The main contributions will be to strengthen the capacity of individuals and local organizations to be resilient,” says Fernandez. “This means that they will be empowered, through a permanently active learning process, to design relevant social development projects, attract aid, and to support and self-manage such projects and programs.
“A resilient community is one that has the capacity to regenerate itself and grow strong when confronting adversity or capitalizing on opportunities.”
Initially, the main focus of the social program will be devoted to addressing the community’s basic needs, such as job creation, water supply, and quality in education and health.
A second stage would aim to satisfy higher needs, such as providing recreational opportunities, developing healthy community relationships, and enabling networking with neighboring communities to resolve problems of poverty and create conditions for a better future.
“In essence, the RJS Group will support communities in engaging a process of self-transformation, with clear and sustainable benefits for all stakeholders and the environment,” says Fernandez.
Green Light for Cheaper Fuel
A plan is in the pipeline to convert thousands of vehicles to run on natural gas and to supply homes and hotels with fuel.
The inauguration in 2007 of the Dominican Republic’s first natural gas compression and distribution plant represented a breakthrough in overcoming the cost and shortage of the country’s energy supplies.
Ricardo Canalda, president of Linea Clave International, the company that owns the main plant and is pioneering the project, says the compressed gas is initially destined for industrial use, but will eventually be available for residential and vehicular use.
Linea Clave has built the plant at a cost of more than $10 million to help meet the D.R.’s need to diversify its energy matrix.
One proposed pilot project envisages building 25 workshops to convert 49,000 vehicles to run on natural gas and constructing 49 filling stations to supply the fuel.
“Our vision is to eventually reach 140,000 converted vehicles and 140 distribution stations that would supply natural gas as well as other fuels. The idea is to complement the existing fuel-distribution infrastructure and give our clients a variety of options,” Canalda says.
Canalda explains that his company has teamed up with Argentinean company Galileo Technology because it has the advanced technology needed to help Linea Clave reach its goal. “Being the pioneers, we created a distribution system in which we use special trucks and storage equipment to bring compressed natural gas directly to our customers – as if we had a virtual gas pipeline from the terminal to our customers’ door.”
Natural gas, he points out, is not only friendlier to the environment, it is also 23% cheaper than petroleum gas. “We see a huge opportunity to provide the country’s tourism sector with natural gas.” If four tourism locations with about 32,600 rooms switched to natural gas, he says, the savings could be as much as $4 million a year.
This would require an investment of more than $2 billion, says Canalda, as well as a partnership with foreign investors who have the appropriate technical know-how.
Making Progress Naturally
From fossil fuels to natural gas and wind power, the Dominican Republic’s mission is to find alternative energy solutions.
A multifuel terminal that will be the largest and most modern in the Caribbean is being completed at the deepwater port of Caucedo, 15 miles east of Santo Domingo. It will be capable of distributing natural gas, propane gas and diesel.
The Marti Petroleum Group (Marti PG), which consists of five major companies involved in the distribution of petroleum derivatives, is constructing the port. The group is in the process of changing its name to Marti Energy Group, because it is diversifying and will be distributing natural gas by the end of the year.
“We are very interested in getting into the natural gas sector because we see it as the alternative energy source of this century,” says Carlos Jose Marti, the group’s chief executive. “We will begin to sell it in liquid form at the end of the year and will distribute it nationwide at service stations, to industry and the automotive sector.
“We have many additional ideas, and see ourselves getting involved with everything from wind energy to ethanol. We do not want to limit ourselves to being seen simply as a petroleum company because we are so much more. We see
opportunities in our ability to provide energy solutions, and this is our mission.”
The group is committed to the future of natural gas, says Marti, and is planning to build a pipeline to distribute the gas to the country’s tourism areas.
Marti’s father started the business in the 1960s by filling propane tanks, which he then sold and delivered. “I remember growing up hearing the sounds of the gas cylinders,” Marti recalls.
Since then, the group has experienced tremendous growth. “We are now the principal importer and distributor of petroleum derivatives, with 6,000 clients in the industrial market and annual sales of more than $400 million,” he says. “We have reached distribution levels of more than 7 million gallons of propane gas a month.”
The companies in the group are Tropigas, Transporte LPG Tropigas Natural, MetroGas, and Sunix.
As a leading international management consulting firm with offices in the Dominican Republic and Puerto Rico, Barreto Vélez combines a broad knowledge of the Hispanic market with an incisive understanding of the U.S. economy.
The firm provides corporate governance, information technology and business consultancy and has developed particular expertise in risk management, using a proven integrated management modeling tool that minimizes risks on capital and earnings.
In addition to audits, program and portfolio management, business continuity planning and disaster recovery tests, the firm’s multidisciplinary team offers forensic and investigative services and a wide range of other operational practices in key areas of business activity.
With more than 40 years’ experience in the marine industry, naval architect and marine engineer Luis Contreras Peña is the pioneer of the Dominican Republic’s shipbuilding industry. Founder of the Ciramar Shipyards International Trading Company, Mr. Contreras studied naval engineering at Michigan State University in an era when any suggestion of a burgeoning naval industry in his home country seemed outlandish. Having worked in various shipyards in the U.S. and elsewhere, Luis Contreras Sr. took his love of ship design and building home to create Ciramar in 1984. “It all started with just me, no one else,” says the founder. Today, employing a workforce of 500 and experiencing annual growth of 25% to 30%, the company’s current facilities offer a full service shipyard for vessels up to a capacity of 7,500 tons. Ciramar also has ambitious plans to expand.
With his son Luis Contreras Jr. bringing a keen business sense to Ciramar, the Contreras have a vision to accommodate vessels up to 40,000 tons in their new shipyard. “After three years of negotiation, we finally purchased Santo Domingo East Shipyard and we are working on making it operational,” says Luis Contreras Jr., president of Ciramar. The Contreras note that they have the full support of Dominican President Leonel Fernandez, who believes in the development of the shipbuilding industry in the country and its role as a regional hub for shipbuilding and repairs.
Major projects have already begun in Ciramar’s shipyards in partnership with the Netherlands-based Damen Group, with which it has a strategic alliance. The venture has seen the construction of a large variety of marine vessels for the international market built by the Ciramar crew at its shipyard in Las Calderas, as all Damen’s orders destined for the Caribbean are built at Ciramar’s shipyards.
The Contreras are keen to point out the innovative contribution made by Ciramar workers and the attention to detail: “We place a lot of emphasis on maintaining a safe, secure, efficient and environmentally sound operation. Of course, we want to safeguard against any environmental damage and ensure that the beautiful crystal-clear Dominican Republic water remains unharmed.”
Ciramar is currently undertaking a truly unique project – a floating hotel called “Fisherman’s Paradise,” designed for family fishing vacations. The five-star hotel will be the perfect environment for fishing and, in addition to 22 luxurious rooms, it will offer entertainment and state-of-the-art nautical infrastructure.
Alejandro Farach Sr. has always had a gift for identifying business opportunities. Educated as a chemical engineer, Farach saw enormous potential in the pharmaceutical sector and set up Alfa Laboratories, one of the first companies to produce medicines in the country. Twenty years later Farach made the astute decision to diversify and created Plastifar.
Observing the increasing propensity for fast-food dining in the U.S. and Latin America, Farach founded Plastifar in 1992 to meet the demand for disposable food containers. “Building its success on manufacturing basic disposable products, Plastifar is at a new stage in its development where we are focusing on innovative, value-added products such as biodegradable containers, which have allowed us to target a market niche,” says company President Alejandro Farach Jr.
These sound foundations and innovations have seen Plastifar increase its exports to more than 15 countries, with overall growth rates of 25% in recent years. There are plans to target the U.S. and, already one of the Dominican Republic’s top 25 exporters, Plastifar is aiming to double its exports over the next five years. “The crisis has presented an opportunity in a way, and we have been flexible to meet the needs of customers,” says Farach Sr.
Similarly ambitious in its exploits, Alfa Laboratories has been constructing a new, second I.V. solution plant, which will house an impressive 2,500-square-meter sterile zone. Already a player in over-the-counter products on the East Coast of the U.S., Cristian Farach, Alfa Laboratories’ president, notes that the company is in the process of seeking approval from the Food and Drug Administration (FDA) for export of its antibiotic products. Once again, innovation is a key to sustained growth.
“We are constantly looking at ways to improve on our products that are already doing well on the market. This investment in research and development is to ensure that we are ready for any competitor and that we abide by the toughest quality-control standards that exist,” comments Farach Sr.
The Farach Group’s strategy has delivered sound results, making it one of the export success stories in the Dominican Republic.
Photo Credits: U.S. Secretary of State Hillary Clinton shakes hands with Dominican Republic President Leonel Fernández. © Erika Santelices/epa/Corbis
Director: Lucas Montes de Oca; Managing Editor: Beverley Blythe; Editor: Michael Knipe; Art Director: Lisa Pampillonia