Dana to have additional income of US$ 312.5 million
Valor Econômico
Dana, one of the largest global suppliers of automotive shafts and universal joints, will invest US$ 150 million in plant in Sorocaba (SP) to start the local production of medium- and heavy-duty front shafts for commercial vehicles. The expectation of the company is that, from its expansion, the earnings generated by the unit go from R$ 500 million (US$ 312.5 million) to R$ 1 billion (US$ 625 million) a year - last year, the sales of the systemist in South America were around US$ 1 billion.
With the setting up of new lines, Dana, that last year registered sales of US$ 6.1 billion, will offer the Brazilian market all the components that integrate the so-called "driveline": front and rear shaft, cardans, differential and suspension components. "We are already the national leaders in the production of light shafts, differentials and universal joints, and with the new business, we will become the largest suppliers of medium- and heavy-duty shafts and complete driveline systems of the region", said on a note the President of Dana in South America, Harro Burmann.
The memorandum of intent with the city hall of Sorocaba, according to information of the company, was signed last week and it involves the largest investment of the company outside of the United States, where it is headquartered. The production of new shafts shall commence in August. According to Burmann, choosing the city of São Paulo took into account the "synergy existing between the components and systems already produced and the new lines and the complementation of the offer for the automakers".
Today, the rear shafts and cardans manufactured in Sorocaba are supplied to the major automakers in the Mercosur, such as Agrale, Ford, MAN, Mercedes-Benz, Volvo, Scania and Toyota, among others. According to Burmann, the production of front shafts in the municipality of São Paulo is strategic for the company to consolidate as the only supplier in South America, of complete driveline systems. Still in the second half, Dana should initiate the production of rear shafts for heavy commercial vehicles. The expansion of the unit of Sorocaba and the increase of the portfolio of Dana in the country have become possible thanks to the strategic agreement signed with Sifco earlier this year. The partnership foresee the exclusive supply for the system provider, in the Brazilian market, of forged parts that will be used in assembling of front shafts.