08/18/2008 14h27
Cummins to increase production
Gazeta Mercantil - 08/18/2008
The optimistic perspective compared to the future of the international market of engines has already caused Cummins do Brasil to get ready for another increase in the capacity of its plant, which will allow the production to achieve 110 thousand units between 2011 and 2012. This year, the company foresees the production of 91 thousand engines. The volume - that is 18% above the 77 thousand units produced in 2007 - is above the projections made in the end of last year - of 80 thousand units. From the total, 66 thousand units will be intended for the automotive sector to equip trucks, buses and pickup trucks. The company income, on its turn, that was US$ 750 million in 2007, should exceed US$ 1 billion this year, which represents 7.5% of the international income. "We have been overcoming goals year after year and we will end 2008 with the 17
th year of consecutive growth and with the perspective of continuing this cycle of expansion for a long time", told
Gazeta Mercantil Luis Pasquotto, senior market officer of Cummins of Brazil. In 2009, when the company will end a cycle of investments of US$ 115 million - which were invested during a period of four years -, Cummins' forecast is to produce 99 thousand engines. "Regardless the deceleration in the international economy, the high rates of interest and the unfavorable price of the US Dollar we are proceeding with the investment program in order to increase the production of engines", said Pasquotto. The Senior Officer of Cummins commented today it is easier to get approval for the investments from the headquarters because Brazil is more attractive. "Confidence in the Country is much greater now than in the past and the sectors we work in - automotive, agriculture, maritime, industry and energy - presents a strong rhythm of growth", said Pasquotto. In its Guarulhos (SP) plant, where it has 1,350 employees, Cummins uses three shifts in the assembly and machining line. The Brazilian subsidiary participates with 10% of the global production of the company, which is 900 thousand engines.
