BRAZIL/SOUTH AMERICA REPORT
JCB has unveiled the largest investment in its history in Latin America. It will inject US$ 100 million into its Latin American operations with the goal of doubling its size in the region by 2030.
The majority of the resources, US$ 70 million, will be allocated to factory expansion. According to JCB, US$ 30 million will be invested in the modernization of the Sorocaba (SP) facility.
An additional US$ 10 million is earmarked for the development of new products and the localization of certain equipment. Another US$ 10 million will be directed towards the distributor network.
The company says this investment is expected to generate 1,000 new jobs: 300 direct and 700 indirect. Currently, JCB employs 600 people in Latin America, most of whom are based in Sorocaba, which serves as the production hub for the entire region.
Source: Automotive Business Read The Article
PSR Analysis: While the Construction equipment market has much room for growth, JCB has kept the pace on growing faster than the Market in Brazil and South America. The investments for capacity expansion and new products nationalization are in line with other important players, such as Deere for example, but with a significant upward bias. Our clients are able to see these forecasts in our databases with details. PSR
Fabio Ferraresi is Director, Business Development South America, for Power Systems Research
