Sinotruk Brasil, a subsidiary of Chinese truck manufacturer China National Heavy Duty Truck Company (CNHTC), Tuesday signed a protocol of intentions with the government of the Brazilian state of Santa Catarina to build a factory in the city of Lages, Brazilian financial daily Valor Económico reported.
The ceremony to sign the protocol took place in Sao Paulo and the chairman of state company SC Parcerias, Paulo César da Costa, said that the factory would take 18 months to build and the Chinese group was expected to invest 300 million reals to build it.
According to a statement from Sinotruk and a statement from the Santa Catarina government, both issued Wednesday, in the first year of business trucks will be imported, whilst the factory is being built, and in a second stage parts will be imported from China to assemble the trucks in Brazil.
In a third stage, the Chinese group plans to use 65 percent Brazilian parts in its trucks and the factory will have an initial production capacity of 5,000 trucks per year and in the medium term this will increase to 8,000 units per year.
Sinotruk is represented in Brazil by importer Elecsonic, which has had offices in Campina Grande do Sul, in the metropolitan region of Curitiba since 2008. (macauhub)