SAO PAULO, Brazil – China’s Shaanxi Auto plans to invest $200 million to build a truck plant in Brazil, reported Gasgoo.com, citing Brazil’s Estado de S. Paulo newspaper.
Shaanxi Auto will build the plant together with its Brazilian subsidiary Metro Shacman. The new plant, to be located in the Tatuí city of Sao Paulo, will have a production capacity of 10,000 heavy-duty trucks with operation starting from the middle of 2014. Insiders of the Economy Development Department of Sao Paulo have disclosed similar news to Daw Jones earlier.
Shaanxi Auto’s Brazil plant will purchase components such as engines and transmissions from local suppliers and reach a localization rate of at least 65 percent, and enjoy tax and fee reduction policies.
Headquartered in Boituva city, Sao Paulo, the Metro Shacman was established in 2010. The company introduces and sells Shaanxi Auto trucks to Brazil and Argentina, Paraguay, Bolivia, and Uruguay.