The Austrian company established its first subsidiary in Pudahuel with a US$3.5 million investment. Over the next two decades, it will train Chilean professionals and technicians to operate and maintain its fire trucks.
Eduardo Viveros, a former captain of Santiago’s 13th Fire Company with 40 years of service, now leads local operations at Rosenbauer. This Austrian company has just invested US$3.5 million to open its first regional subsidiary in Pudahuel, Santiago.
Rosenbauer is the world’s leading manufacturer of firefighting technology for defensive protection against fires and disasters, with more than 160 years in the market. However, in Chile, the company lacked technical service, a gap the new regional subsidiary is now filling.
At its core, says Viveros, there is a structural problem. “Chile needed to transform the market. This is not about selling more; it is about making a real change. If no one took the problem seriously, the lack of maintenance would eventually cause the system to collapse,” the firm’s representative asserts with urgency. Rosenbauer builds its high-end vehicles—branded with an “R” on the chassis—from European manufacturers such as Volvo, Scania and Mercedes-Benz.
Since 2012, the business environment for surrounding firefighting has changed. Chile’s Fire Department Framework Law (Law 20564) stipulates that operations are funded by contributions from public budgets—such as surplus stock dividends and unclaimed bank balances—along with aid from municipal and regional governments. “The firefighters’ collection efforts with the donation kettle help, but only for day-to-day expenses,” says Viveros. He adds that the law also requires the government to fund the purchase of 150 to 200 fire trucks per year, making Chile a stable investment market.
Viveros estimates that a high-end fire truck costs between USD 200,000 and USD 500,000, implying a state contribution of up to USD 100 million. He says the seller’s margin is narrow—between 6% and 7%—which would explain why, for years, no Chilean company was willing to make the initial investment in workshops, scanners and certifications required to service the brand’s vehciles.
Viveros openly admits that his trucks are more expensive than the competition’s. However, he qualifies the difference: “My truck is more expensive, but it is not three times as much as the others. It does last three times as long, though. After seven years, other trucks often need retiring because of maintenance issues or because they are no longer working,” he says. “Ultimately, it is an investment,” he concludes. “Sometimes people tell us we are like the Ferrari of fire trucks. But more than a Ferrari, we are a fire truck that works reliably when you need it,” he says.
He adds that some twenty- to twenty-five-year-old units are still operational with fire departments in southern Chile. In total, the country has about 2,300 fire trucks, with Rosenbauer accounting for 10% of the fleet and 35% of its market value. “We want to maintain those figures in our local operations, but we want our trucks to serve at least two generations of firefighters,” he says.
Although the public generally associates fire trucks with the trip from the fire station to the scene of a fire, the Austrian firm believes another market segment is key. “If you ask me what Rosenbauer’s primary product is, it is airport fire trucks,” explains Viveros. The company is present at 135 airports worldwide, including Santiago’s, where it operates under pressure with no margin for error. If a fire truck malfunctions, planes cannot land, and the airport risks a safety downgrade.
This line of business also drove the company’s decision to establish operations in Chile. Global air traffic growth projections point to Latin America as a region with significant growth potential, unlike the already mature European and Asian markets.
This strategic location will also support logistics as the company expands into the mining market. Viveros, whose prior experience includes representing heavy machinery companies, explains that in his previous job he sold 18 fire trucks to major mining companies in Chile. However, he acknowledges that he did so under the same “low-cost” logic that he now aims to change:
“The mining sector is an insurance market, not one focused on fire truck maintenance. The law requires operations more than 100 kilometers from a fire station to have their own fire truck. But companies were looking for the low-cost option—to have it parked there. They just wanted the insurance company’s approval. Rosenbauer is not interested in selling you a basic off-the-shelf truck to park outside. We want to assess your site, understand the types of emergencies you might face and train your fire brigade,” explains Viveros.
Rosenbauer also has lines of business focused on firefighter equipment and uniforms. In fact, Viveros says they recently entered the Argentine market with their helmets.
Source: Forbes.