Caterpillar expand in Brazil
CAPITALIZING on the expected growth in Latin America, Caterpillar have announced major expansion plans of their production capacity, with the acquisition of a manufacturing site in Brazil.
Located in Campo Largo, Parana State, the 50,000 sq m production plant will manufacture backhoe loaders and small wheel loaders, which are currently produced at Piracicaba and are part of the machine line-up for Caterpillar’s Building Construction Products (BCP) Division.
Mary Bell, vice president of the BCP Division, commented: ‘This new facility is an important investment for the long-term growth and success of BCP, particularly as we meet the growing demand for Caterpillar’s smaller, versatile machines that help our customers accomplish their work more productively and profitably.’
The company also plans to increase capacity at the flagship production plant in Piracicaba for the manufacture of core products. Caterpillar’s expansion of their construction equipment production capacity in Brazil is expected to cost around $180 million over the next two years.
‘The strategic decision to expand the operations in Brazil is part of Caterpillar’s long-term global strategy for growing our business in key growth markets and this move will help us meet demand from the growing base of customers in Latin America,’ said Rich Lavin, Caterpillar group president with responsibility for growth markets and core products.
Luiz Carlos Calil, president of Caterpillar Brazil, added: ‘In selecting the new manufacturing facility, we considered a number of Brazilian cities over the last six months. Campo Largo was selected due to the site characteristics and the possibility of increasing capacity sooner. The geographic location of this new facility will also help Caterpillar improve their supply chain efficiency and expand our operations flexibility aligned with the company’s production system principles.’
Located in Campo Largo, Parana State, the 50,000 sq m production plant will manufacture backhoe loaders and small wheel loaders, which are currently produced at Piracicaba and are part of the machine line-up for Caterpillar’s Building Construction Products (BCP) Division.
Mary Bell, vice president of the BCP Division, commented: ‘This new facility is an important investment for the long-term growth and success of BCP, particularly as we meet the growing demand for Caterpillar’s smaller, versatile machines that help our customers accomplish their work more productively and profitably.’
The company also plans to increase capacity at the flagship production plant in Piracicaba for the manufacture of core products. Caterpillar’s expansion of their construction equipment production capacity in Brazil is expected to cost around $180 million over the next two years.
‘The strategic decision to expand the operations in Brazil is part of Caterpillar’s long-term global strategy for growing our business in key growth markets and this move will help us meet demand from the growing base of customers in Latin America,’ said Rich Lavin, Caterpillar group president with responsibility for growth markets and core products.
Luiz Carlos Calil, president of Caterpillar Brazil, added: ‘In selecting the new manufacturing facility, we considered a number of Brazilian cities over the last six months. Campo Largo was selected due to the site characteristics and the possibility of increasing capacity sooner. The geographic location of this new facility will also help Caterpillar improve their supply chain efficiency and expand our operations flexibility aligned with the company’s production system principles.’
