Sao Paulo, Brazil, 15 April – Brazilian car parts manufacturer Fras-Le said Monday it planned to invest US$3.5 million in a factory in the city of Pinghu, in Zheijiang province, on the east coast of China.
The brakes equipment factory is expected to start operating in June 2009 and have initial production of 2 million parts per year to supply the Asian market, specifically Singapore, Malaysia, Taiwan and India.
Fras-Le, which is majority-owned by the Randon group, from Caxias do Sul, expects turnover of around US$6 million by 2010.
Fras-Le has been exporting to China since 2001 and in 2006 it opened a Sales Office in Shanghai, some 120 kilometres from the future factory.
Last year the company exported goods worth US$2 million to Asia, including South Korea, 80 percent of which was for the replacement parts market.
The remaining 20 percent was sent to industries such as ArvinMeritor, Volvo and Chinese car manufacturer Golden Dragon.
The director for investor relations, Daniel Randon said that Fras-Le had been looking at setting up the factory for the last 12 months.
“The increased value of the real speeded up the decision, but the main reason for focusing on a new factory was the need the company felt to be closer to local customers and to work at more competitive prices,” he said. (macauhub)