XCMG opening in Brazil
14 January 2013
On 22 December 2012 the opening ceremony of the XCMG Brazil manufacturing base was held in Pouso Alegre, Minas Gerais.
Yeer Gunia, representative of Brazilian president and federal councillor, Cao Xinping, secretary of CPC Xuzhou Municipal Committee, and Wang Min, president and secretary of the Party Committee of XCMG were among those who participated in the ceremony.
The XCMG Brazil manufacturing base is the first wholly-owned production base of XCMG in its internationalisation process.
The base, which covers 800,000 square metres, has had a total investment of US$200 million and will have a production capability of 7,000 pieces of construction machinery a year, including cranes, excavators, loaders, road rollers and graders, the manufacturer said.
The base will help establish XCMG’s global deployment, as well as building a local XCMG in South America. Accordingly, it will help stimulate the development of the upper stream industry and lead Chinese enterprises engaged in construction machinery components to the global market, the company said.
Cao Xinping said that XCMG has focused on its global deployment and established the first large-scale company that integrates purchasing, manufacturing and sales by benefiting from the rapid development of Brazil’s economy, sound political environment and a bright market prospect.
“Based in Pouso Alegre，XCMG’s manufacturing base is an important advance of its international strategy as well as ties of friendship linking people in Pouso Alegre and Xuzhou," Cao Xinping said. “It will bring lots of positive benefits such as improving the economic level of Pouso Alegre, creating more jobs and helping relevant industries to develop.
“As an enterprise with high social responsibility, XCMG is always adhering to the philosophy of running business in a scientific way, paying tax according to the law, being kind to its employees, paying attention to safe production and protecting the environment. We sincerely hope that Pouso Alegre will regard XCMG as its own enterprise, and we believe that people in Pouso Alegre will provide high quality service for XCMG. I have every confidence that with the international cooperation, we will have more opportunities in the future, and XCMG will have a better prospect in Brazil.”
In his speech, President Wang Min said that Brazil and the American market are the top priority of XCMG’s internationalisation process. “Why does XCMG choose Brazil? There are twofold reasons. First, Brazil is the sixth largest economy in the world, which is abundant with great potential and prime opportunities for major construction projects. Second, with the well-established marketing and sales networks in Brazil and America as well as a large group of regular clients, XCMG has a turnover of about $200 million in Brazil, which enjoys rapid and sustained growth. It is estimated that XCMG Brazil Manufacturing Base will have been completed and put into production by 2013, and its turnover will be $500 million in 2015.”
