Volvo Construction starts new production line in Brazil to bypass crisis
DCI - 03/06/2009
Diversify to bypass the crisis. That was the strategy of Volvo Construction Equipment Latin America as it decided starting, beginning next month, the production in Brazil of some models of its road machinery equipment line - construction machines for compacting, leveling and paving - in its unit located in Pederneiras (SP). The company registered record sales in Latin America of US$ 520 million during 2008, a number 34% above the obtained in the previous year, and Brazil was responsible for 66% of such amount. The total investment for the new production line will be US$ 4 million (RS$ 9.56 million). According to the VOLVO CE LA's CEO, Yoshio Kawakami, what made the company decide for the production in the country was the fact that a year ago the company increase its portfolio of products in Brazil and started selling two new models of ground compacting machines - mainly aimed at works in the construction of highways, urban roads, dams and yards, among others - and noticed the great demand of the region. The two models that will be produced in the Brazilian plant are of the 10 ton class, which represents nearly 70% of the sales of ground compacting machines in Brazil. The potential clients are rental companies (machinery rent), building companies and public bodies. Besides the production of the models SD105F and SD105DX, Volvo CE LA will continue selling in Brazil the other 15 models of ground and asphalt compacting machines that are imported from other plants of the group: SD77DX, SD77F, SD160DX and SD160F (ground compacting machines) and DD16, DD24, DD31HF, DD70HF, DD90HF, DD112HF, CR24, CR30 and SD77DA (asphalt compacting machines).