Johnson Controls invests US$ 51 million
Valor Econômico 09/22/10
Leader in the national market of automotive batteries for both the makers and the aftermarket segment, Johnson Controls will invest US$ 51 million in the enlargement and modernization of the plant it operates in Sorocaba (SP). The positive prognosis for the car industry in South America and the lack of a market of imported batteries in the country, which could benefit from the increase in the value of the Real and increase the competition with the national components, justify the decision to invest in the Brazilian territory."The participation of Brazil in the businesses of the company has been consistently growing over the past five years. Now, the results are already higher than those prior to the crisis", said the Managing Director of Johnson Controls for South America, Carlos Zaim. In the quarter ended June 30, the global net sales of Johnson Controls, which is listed in the New York Stock Exchange, amounted to US$ 8.5 billion, compared to US$ 7 billion a year earlier. In the tax year ended September 30, the net income totaled US$ 28.5 billion. The company does not disclose the earnings as per region.
The improvement of the Sorocaba plant, said Zaim, started being assessed a year ago and a great deal of the resources involved in the project will come from the cash of the very subsidiary. "So far we have no plans to build another plant in Brazil. But, when whenever a project comes to mind, it will surely be located in Manaus", he added. Johnson is one of the largest suppliers of batteries for motorcycles in the country, and its production is concentrated in the Northern region.
The expectation is that the project starts being put into practice next month and be completed within 30 months, when the new lines for the production of batteries for cars and motorcycles should get to 100% of the installed capacity. According to Zaim, the current lines are near 100% of the capacity and the additional capacity - 1.5 million car batteries and 1.5 million units for motorcycles a year - shall gradually be put in operation.
The world's largest manufacturer of lead-acid car batteries and developer of advanced technologies for such type of component, Johnson Controls is the owner of the brand Heliar, unthreatened leader of the aftermarket for batteries in the country. According to Zaim, nearly 70% of the units produced here by Johnson Controls are intended for such market and the other 30%, for the makers. In Brazil, the company supplies the component for the whole car industry, except for Ford.