LiuGong opens new Brazil factory and plans big investment
LiuGong Machinery's first factory in Brazil
LiuGong Machinery, one of China’s leading manufacturers of high quality heavy construction equipment, said during the opening ceremony of its first factory in Brazil, that it will invest R$ 120 million (US$38.4 million) in the country.
The plant is located in Mogi Guaçu, a city in the countryside some 180km from São Paulo.
The project is covered by Investe São Paulo, promotion agency for investments linked to the Department of Economic Development, Science, Technology and Innovation for the State of São Paulo.
“We are helping LiuGong choose the ideal location for their plant and directing them with respect to tax incentives. But the work is just beginning, because we will help the company precisely in the factory’s infrastructural aspects,” says Juan Quirós, president of Investe SP, Juan Quirós.
LiuGong expects to produce 1,500 units/year at the new facility. The investment will last three years, reflecting the evolution of business expectations in the country.
The factory will deliver the best-selling equipment in the Brazilian market, including wheeled loaders and excavators, and it will be LiuGong's fourth factory outside China.
LiuGong has operated in Brazil since 2007, and its wide range of products for construction and mining is distributed throughout Brazil and has a post-sales support system with local presence.
The company says it uses known and recognised parts from partners such as Cummins, ZF and others.
The city of Mogi Guaçu offers easy access to some of the main parts’ suppliers in the region and its strategic location is critical to the business plan.
Officials at the opening of the LiuGong Machinery plant in Brazil
“LiuGong is reinforcing a long-term relationship with Brazil. We have a success story in the country with our machines. This investment is the natural consequence of our business’s evolution and the belief that the infrastructure and construction markets have good potential for growth in the coming years,” says Bruno Barsanti, vice president of LiuGong Latin America.
The company plans to hire 80% of its employees locally and has a policy of offering opportunities for professional growth.
“Our company invests heavily in new products and technologies in China, and these advances are used worldwide in our operations in Poland, India, Argentina and now Brazil. We are committed to transferring our values to the communities selected to build our facilities, bringing social and economic growth and knowledge.”
According to the deputy governor and secretary of Economic Development, Science, Technology and Innovation, Márcio França, the unit deployment in Mogi Guaçu is the result of the state government’s actions to stimulate the economy throughout the entire state.
“São Paulo has competitive rates higher than other states, thanks to the state government initiatives to invest in research, innovation and human resources training. Choosing Mogi Guaçu is strategic, since the municipality has an Etec, offering courses geared towards industry. Additionally, the factory is in the administrative region of Campinas, which, in addition to the labor supply and technology parks, provides a privileged location due to the proximity of the main industrial and commercial centers in the country,” says França.
“The installation of LiuGong in Mogi Guaçu meets our government’s meta-synthesis, which fosters economic development so as to provide the population with a good quality of life,” says Mayor Walter Caveanha.
“It is a company with great potential for the national and international market, which will also contribute to the expansion of opportunities for the local workforce," adds Caveanha. "The participation of the state in the process of defining the company for Mogi Guaçu was decisive.”