Sao Paulo, Brazil, 24 Feb – Chinese state company Xuzhou Construction Machinery Group (XCMG), one of China’s largest manufacturers of machinery for the construction sector, plans to open a branch in Brazil, the company said in a statement issued Tuesday in Sao Paulo.
With initial investment of US$10 million, the future company has provisionally been called, Xugong Brazil Investment and the factory will be in Vitória (Espírito Santo state) or in a non-specified city in the state of Minas Gerais.
The Brazilian company will be controlled by two subsidiaries with headquarters in Hong Kong, XCMG International Trade, which will invest US$9.5 million, and XCMG International Development, which will contribute US$500,000.
Founded in 1989, XCMG is one of the world’s biggest companies in the sector, controls about half of the Chinese market and 30 percent of its production is exported, including to Brazil.
With this announcement, XCMG is following in the footsteps of its main Chinese competitor, Sany, which in January started building its own factory in Sao Jose dos Campos (Sao Paulo state), at an investment of US$200 million. (macauhub)