The Estonian producer of joint sealants and insulation foams Krimelte has concluded a contract with a Brazilian importer and plans to start exporting insulation foams to other South American countries as well, the business daily Aripaev reports.

"After the whole system is in place opening of the new market is just a matter of time. This will happen in six or 12 months," CEO Jaan Puusaag told the paper.

Krimelte has to date delivered a couple of containers of goods to the Brazilian importer Ancora which Puusaag said represents a tiny part of the company's sales that exceed one billion kroons (EUR 64 mln).

As exporting to Brazil started only this year shipments to that country could make up 2 to 3 percent of the turnover next year, which is more than 30 million kroons, Puusaag said.

Krimelte is holding talks with another importer in Brazil. The company has found an importer in Argentina as well, but getting the necessary certificates is going to take some more time. 

Puusaag predicts that first deliveries could reach Argentina already in six months. The next target in South America is Chile.

The chief executive noted at the same time that Krimelte's sales have shrunk by 30 percent this year in comparison with 2008 and the company will probably end the year with sales of around 700 million kroons, slightly less than a year earlier.

Puusaag did not rule out the possibility that in addition to all the cuts made to date costs will have to be reduced more in the future.

The Estonian-equity Krimelte exports its products to more than 30 countries.