Chinese groups interested in buying construction companies in Brazil

6 April 2017

Chinese groups plan to buy large construction companies and take part in auctions for the construction of railway lines in Brazil in order to increase their presence in infrastructure projects in the country, said the president of the Brazil-China Chamber of Commerce and Industry (CCIBC).


Charles Tang also told Reuters news agency that the Chinese groups plan to fill the void left by big companies that are facing financial difficulties and, in some cases, problems with corruption.


Chinese groups, Tang said, have the capability not only to provide construction services to secure funding for these projects, which “represents a competitive advantage in the context of the largest economic downturn Brazil has experienced for decades, a reality that has made credit expensive and scarce.”


Without naming names, the president of the CCIBC said he has been contacted by Chinese groups asking for help to buy large construction companies that are not involved in the “Lava Jato” (Jet Wash) corruption case, as they want to do construction work in Brazil, subcontract or buy already operating companies.


Tang mentioned that the Chinese groups are very interested in the railway projects that the Federal Government of Brazil intends to auction this year, such as the railway lines of Ferrovia de Integração Oeste-Leste (FIOL) between Ilhéus and Caetité (state of Bahia) and Ferrogrão, between Mato Grosso and Pará.


The president of the CCIBC also said Chinese groups were interested in larger in larger works, should they be approved, including the high speed train between São Paulo and Rio de Janeiro and the transoceanic railway line, linking the Atlantic and Pacific oceans.


Chinese groups are also interested in the acquisition of land for agricultural production, which is currently impossible because such purchases are closed to foreigners, as well as in the energy sector. (macauhub)