JCB plans investing US$ 56 million in new plant in the country
Valor Econômico
On the verge of opening a production line of bulldozers in the unit of Sorocaba (SP), British company JCB, one of the biggest global manufacturers of heavy machinery, is getting ready for a new round of investments in the Brazilian soil. The project, according to the Managing Officer of JCB for Latin America Carlos Hernandez, involves a US$ 100 million (US$ 56 million) investment in another plant in the country, in 2011, which shall allow the company to increase the installed capacity and the national portfolio.
In Sorocaba, in the only productive unit of the company in South America, JCB makes backhoes, the flagship of the company worldwide. On the 22, it is officially started the operation of the line of caterpillar bulldozers, the result of US$ 5 million in investments, which increased the productive capacity in the country by 50%. "We have already noticed this expansion is not enough and we started working on the project of the new plant that should be located in the region of Sorocaba", says the Executive. The raising of the bet in Brazil is justified by the relevance the domestic market has gained for the global businesses of the company. In the first quarter, JCB sold 4,264 machines in the country, nearly twice the amount sold in same period of 2009. In North America, in the same quarter, 16,826 units were sold, an 8.6% fall on the same basis of comparison.
Infrastructure works, the Growth Acceleration Program (PAC) and investments in mining subsidize the growth of the sales of machines in the country, according to the Executive. "The Brazilian economy can grow more, but that will only take place if there are more infrastructure works. And that there is a great opportunity for us", he adds. The Executive mentions as an example of the greatness - and opportunity - of the projects underway in Brazil the transposition of the São Francisco River, which contributes for the heating of even stronger sales in the Northeast region.
According to Hernandez, the company happened to assess the possibility of changing the national content, currently at 70%, when it took the decision of investing in line of caterpillar bulldozers that will be officially inaugurated on the 22. However, it chose to keep the current levels due to the incentives the Finame, credit line of the National Development Bank (BNDES), which requires that at least 60% of the weight and value of the machine are of national content, represents to the sales of machines in the country. "Maybe that discussion resulted from the current exchange rate. But the conditions of the Finame are very attractive, and that certainly drives the decision of investments in machinery", he adds.