Sany defines Brazil as priority
Valor Econômico
Sany Group, manufacturer of heavy machinery and equipment for engineering, sent Brazil one of its top executives and founders with the mission of turning the Brazilian subsidiary into the most important project of the group outside China. With global sales projected at US$ 8 billion in 2010 and nearly 50 thousand employees, Sany has bold plans for Brazil: in five years it foresees an income of US$ 1.2 billion and, in the short-term, it intends to achieve the market leadership in the segments of cranes and concrete pumps.
Its President for Brazil and International Vice President, Victor Yuan, says it is the first time a subsidiary outside China is headed by one of the four founders and owners of the group, which demonstrates the relevance the company gives to the Brazilian market, considered one of the most promising in the area of infrastructure. Brazil and China, according to Yuan, have many similar aspects as regards the pace of growth of the economy. The new plant Sany intends to erect in Brazil, according to the Executive, will be the largest industrial unit outside China and the one with the more product lines.
With 30 subsidiaries spread through the world, connected to a sales and distribution network that reaches 110 countries, the Brazilian subsidiary of Sany will be the first arm of the group in Latin America and the fourth plant outside China. Yuan also says Sany intends to put up an Institute of technological development in Brazil, because it sees the local market has differences and it is necessary to make adjustments that also meet the needs of other South American countries.
The investment foreseen in the construction of the plant in Brazil amounts to US$ 200 million and the unit is expected to be in operation at the end of 2011. Currently, the company is installed in a 15-thousand-square-meter rented area in São José dos Campos. Sany has nearly 200 employees today, but with the plant in operation, it foresees a total of 500 employees. The site to build the new plant has not been set yet, but the President of the company assures it will be in the State of São Paulo. "We have two options in the region of Vale do Paraíba, but the important thing is that the plant be located in a region of easy access to the main roads in the country in an economically developed environment with tax incentives". The Executive expects the decision to be taken within one to two months.
This year Sany registered US$ 35 million in sales in Brazil, but the plan for 2011 is of significant growth, with earnings from US$ 140 million to US$ 150 million. The President of the company estimates the sale of nearly one thousand machines next year - 600 bulldozers, 300 cranes and another 100 concrete pumps. The company is setting up a network of distributors in Brazil and it already has 11 dealers with the mission of distributing the machines imported by Sany and, in future, those produced in the country. According to the Executive, Sany Holding do Brasil will have 70% of local production and 30% of imported products.