China’s Foton Motors to build truck factory in Minas Gerais, Brazil

16 August 2012

Chinese group Foton Motors is expected to build a truck factory in the Brazilian state of Minas Gerais, senator Clésio Andrade, of the Brazilian Democratic Movement Party (PMDB), told the Itataia radio station, according to the Brazilian press.

The senator also said that negotiations with the Chinese group were at a “very advanced” stage and that currently the company was choosing in which city its first factory would be built.

Brazilian newspapers reported that the Belo Horizonte Metropolitan Region, where Fiat (Betim) and Iveco (Sete Lagoas) are located is a strong candidate to house the Foton factory, given that the region already has a number of parts suppliers.

The south of the state of Minas Gerais is also in the running to become the location of the new factory, given its proximity to Sao Paulo and the fact that the Xuzhou Construction Machinery Group (XCMG), a Chinese manufacturer of construction machinery, is already located in Pouso Alegre.

Andrade also said that Foton planned to launch its operation in Brazil by assembling components manufactured in China, which would then be followed by a second stage of total production of the trucks in the country.

The brand entered the Brazilian market via the former chairman of the Brazilian development bank, Banco Nacional de Desenvolvimento Económico e Social (BNDES), Luiz Carlos Mendonça de Barros, in May 2011, who said at the time, speaking to financial newspaper Brasil Económico, that Foton planned to build trucks in Brazil. (macauhub)