GE to have new locomotive plant in the country
Valor Econômico
While it enlarges the locomotive plant it has in Contagem (MG), GE is already studying the construction of a new plant in the country, in a place and investment value yet to be defined. The multinational intends to diversify its portfolio and reach the foreign market. As said yesterday the Executives of GE Transportation to Valor, the initial resources for the enlargement will amount to US$ 50 million by 2012. "The investments began in September. We will soon double our production of locomotives (in Brazil)", said the International President of GE Transportes, Lorenzo Simonelli.
The expansion project involves three stages. The first, to end in March, will focus on the enlargement of the current productive unit. The second phase, which should be completed at the end of next year, will involve the construction of a new building and two new production lines in the current area. Those two stages should consume the US$ 50 million foreseen. The third phase of the project will be the construction of the new plant. "We expect to conclude the three phases until the end of 2012", said Simonelli. According to Chairman of GE Transportation for Latin America and Africa, Guilherme Segalla, the plant of Contagem greatly meets the demand of the Brazilian market. The idea of the multinational is to increase the production to cater to the foreign market as well, turning Brazil into an exporting center.
The hiring of 200 employees is foreseen with the expansion next year. The investments in the area of locomotives are part of the total US$ 500 million announced yesterday by GE. As informed the multinational, US$ 200 million will be allocated at the increase of the capacity of the plants and in the development of products for the energy, and oil and gas businesses in Brazil. Another US$ 200 million will be allocated to the increase of the capacity and construction of new production lines in the units of GE Healthcare, GE Transportation, GE Aviation. As found out by Value, that amount includes US$ 20 million for the construction of a plant in the area of lighting, whose location has not yet been defined. The other US$ 100 million will go to the new Research Center. The city of Rio de Janeiro was chosen to receive the center, whose focus will be the development of technologies for the oil and gas industries, renewable energies, mining, railway transportation and aviation.