Chinese machine maker to have unit in Brazil
Folha de São Paulo
The State-owned company Xuzhou Construction Machinery Group (XCMG), the largest Chinese manufacturer of machines for construction, announced yesterday its plans to open a unit in Brazil, with an initial investment of US$ 10 million.
The future company was temporarily named Xugong Brazil Investment. The plant will be located in Vitória (ES) or in an unspecified city of Minas Gerais.
The Brazilian subsidiary will be controlled by two subsidiaries based in Hong Kong, XCMG International Trade, which will invest US$ 9.5 million, and XCMG International Development that will invest US$ 500 thousand.
Founded in 1989, XCMG is one of the largest companies of the sector in the world and it controls nearly half of the Chinese market - 30% of its production is exported, including to Brazil. The net income of the company reached US$ 422 million in 2010, an increase of 61% compared to the previous year. With the announcement, XCMG follows in the footsteps of its main Chinese competitor, Sany, which started in January the production at its plant of São José dos Campos (SP), in an investment of US$ 200 million.