CNH plans new US$ 350 million Brazilian factory

CNH has signed a memorandum of understanding with the Brazilian state of Minas Gerais to build a new BRL 600 million (US$ 350 million) construction equipment factory in Montes Claros. The agreement was signed at parent company Fiat Indusutrial's headquarters in Turin, Italy by a Minas Gerais governor, Antonio Anastasia.

"This agreement strengthens our ties to the state of Minas Gerais and reconfirms a commitment started 40 years ago with Fiat's first investments in the region. Minas Gerais holds a prominent place in the Brazilian economy and therefore is an ideal location for Fiat Industrial, and for CNH in particular, to grow in Brazil," said Sergio Marchionne, chairman of Fiat Industrial and CNH.

The first Fiat factory in Brazil was set up in 1970 in Contagem, also in Minas Gerais. Today it manufactures construction equipment for both the Case and New Holland CNH brands.

The new 700,000 m2 factory will form part of a 2 million m² complex and is scheduled to begin operations in 2014. It is expected to employ 700 people, with a further 2000 jobs being generated among component suppliers in the vicinity of the plant.