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Fourth Overseas Factory: LiuGong Invests in Brazil

SAO PAULO/BRASIL, April 17, 2015 – LiuGong, one of China’s large construction machine manufacturers, announced it will spend R$ 120 million (37 million Euro) in the country during the opening ceremony of its first factory in Brazil. The plant is located in Mogi Guaçu, a city located in the countryside, 180 km from São Paulo. LiuGong plans to deliver the first equipment from April 2015.

The project is supported by Investe São Paulo, a 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," explained the president of Investe São Paulo, Juan Quirós.

LiuGong's Brazil Factory

LiuGong's factory is located in Mogi Guaçu, Sao Paulo state. The first equipment is scheduled to leave its doors in this month. | photo: Bauer Spezialtiefbau GmbH

Equipment for the Brazilian market

LiuGong expects to produce 1500 units per year at the new facility. The factory will deliver Liu Gong’s best selling equipment in the Brazilian market, including wheel loaders and excavators. It will also be LiuGong's fourth factory outside its home China. LiuGong has operated in Brazil since 2007 and claims it’s recognized for product quality, ease of maintenance and wide range of products for construction and mining.

The equipment is distributed throughout Brazil and has a post-sale support system with local presence. One of the great advantages they offer is the use of known and recognized parts from world-class partners like 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.
"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 their 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," said Barsanti.

LiuGong and their Brazilian Partners

LiuGong and their Brazilian partners during the inauguration ceremony. | photo: LiuGong

Support of São Paulo State

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 [Euro Albino de Souza State Technical School, editor’s note], 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," he said.
"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," said 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," he concludes.

Mogi Guaçu

The city of Mogi Guaçu is located in the eastern region of the State of São Paulo. It has a land area of 885 square kilometers, with strong industrial production in the fields of metallurgy, power and paper and cellulose. The city has five industrial districts, one of which is the location for LiuGong Machinery. With 147,000 inhabitants, the industrial vocation of Mogi Guaçu is historical, but it also focuses on important agricultural activity, being a major producer of oranges and tomatoes in the State of São Paulo. The city is served by an extensive road network that allows connection to the state capital and the port of Santos, as well as the south of Minas Gerais.