Chinese group CEE Power wants to expand its activity in Brazil’s electricity sector, where it won a concession in 2016 to build transmission lines, by building an equipment manufacturing plant, said the commercial director of Ceepower Brazil Holding Ltda.
Márcio Coelho told Reuters that the idea is to build a factory to manufacture the main equipment used for power transmission and production, “while closely following what is happening in this market.”
The factory will be built in the state of Santa Catarina to produce medium voltage equipment, which in an initial phase, “probably in partnership with a local company”, will involve an investment of about 20 million reais.
After its debut in 2016, the group and its international business arm Real You Group took part in auctions in Brazil in late 2017 for new transmission projects and construction of solar parks, but strong competition led the company to retreat.
The commercial director of Ceepower Brazil pointed out that the group is privately owned and is not the size of China State Grid, for example, so it has to be more cautious given that “the projects we are involved in have to offer a financial return.”
The transmission lines the group is building in Santa Catarina and the Rio Grande do Sul, is expected to receive more than 200 million reais of investment – and the company wants to bring forward operations planned for June 2020 by at least six months.
The commercial director said that the venture will use equity capital of the CEE Power group and international financing, and the group is considering issuing debt in Brazil. (macauhub)