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Italy's Landini To Build Tractor Plant In Brazil

Posted on March 31, 2014

Landini, part of Italy's Argo Tractors group, will build a manufacturing plant in the metropolitan region of Belo Horizonte city, Minas Gerais State, Brazil. The investment of R$30 million (US$13 million) will result in the first plant outside Italy for the production and sales of agricultural tractors.

Operation at the site is expected to begin in the second half of the year. Initially, Landini will manufacture tractors ranging from 73.5 kW (100 hp) to 132.3 kW (180 hp). Later, the range will be expanded with the addition of 44 kW (60 hp) to 73.5 kW (100 hp) tractors. The facility is expected to generate 120 new jobs within the next five years.

Currently, Landini operates in Brazil through dealers. Tiago Bonomo, Landini’s president, explained why the company chose Minas Gerais as the site of the new facility. “After evaluating several options, Minas Gerais presented itself as the ideal choice for the installation of our first industrial unit outside Italy due to its privileged geographic position to attend the tractors’ market, besides its industrial park that counts on our traditional suppliers’ chain in Italy,” he said. “It will also offer high qualified workforce, an indispensable factor in our activity.”

Landini operates in 130 countries, with an industrial park with four factories in Italy, and nine commercial branches in Europe, Americas and South Africa. The company said it has a global market share of 5%.

This is third significant manufacturer to establish manufacturing in Minas Gerais in recent years. Fiat Group is in the process of implementing a new plant in Montes Claros for the production of construction machinery, while China’s XCMG is also building its plant in Pouso Alegre for the manufacturing of heavy construction machinery.