Sao Paulo, Brazil, 21 May – Brazilian group Medabil plans to invest 40 million reals in building a factory in Angola to produce and assemble metallic structure, according to Brazilian newspaper, Valor Económico.
This will be the first unit of the Brazilian group in a foreign country and it will be built in partnership with Angolan group Gema, which will have a 49 percent stake in the business.
the decision to open an Angolan subsidiary follows two months after the signing of a contract with the Angolan government valued at US$15 million to carry out 88 different construction projects.
The contact includes building a metallic structure for small supermarkets and industrial pavilions, said Attlio Bilibbio, chairman of Medabil, which has headquarters in the Brazilian state of Rio Grande do Sul.
The factory will be built on the outskirts of Luanda, and will have the capacity to process 12,000 tons of steel per year, based on raw materials imported from Brazil.
The new units, which is due to begin operating in the second half of 2008, may also be the basis for operations in nearby country’s such as Mozambique.
“But first we have to consolidate our current project,” said the chairman, whose plans include doubling production capacity over the next tree years.
The group’s expansion plans also include building a factory in Argentina and boosting production capacity at its main factory, investing a total of 200 million reals.
Production capacity will increase from a current 45,00 tons to 100,000 tons per year, which will boost annual turnover to around 1 billion reals. (macauhub)