Asian manufacturers target Brazil

Four Asian equipment giants - Doosan, Hyundai, Sany and XCMG - will invest a total of US$ 610 million to set up factories in Brazil over the next two years. International manufacturers that already have factories in Brazil include CNH, Caterpillar, Komatsu, JCB, John Deere and Volvo among others.

Hyundai says that last year its sales to Brazil tripled, with the country one of the highlights in its financial results. This led it to announce last week that it would invest US $ 150 million to build an equipment factory in Itatiaia, in southern Rio de Janeiro. The unit, scheduled to open by the end of 2012, will have the capacity to produce 5000 excavators, wheeled loaders and backhoes loaders per year.

Sany Brazil president Victor Yuan meanwhile has said the company plans to build a factory in Jacareí, Sao Paulo. The company says it expects construction equipment sales, including cranes and concrete pumps, to grow +33% over the next two years.This year has seen Sany start importing excavator and crane kits to Brazil, but the company says it plans to invest some US$ 200 million in its Jacareí factory to boost its capacity in the country.

Besides Sany and Hyundai, are reported investments of US $ 200 million by XCMG in Pouso Alegre (Minas Gerais) and US $ 60 million by Doosan in Sao Paulo.