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Agrale To Build New Plant In Brazil

Posted on July 15, 2014

Agrale expects to begin manufacturing bus chassis at a new site in Brazil next year.

Brazilian manufacturer Agrale has announced that will build a new plant in São Mateus city, Espírito Santo state, Brazil. With an investment of US$18 million, the company intends to build all of the company’s products, which includes tractors, trucks, engines, chassis and other products, at the facility in the future.

Agrale said that production of bus chassis is expected to being in 2015. Approximately 200 jobs will be generated by the plant initially.    

Agrale’s president Hugo Zattera stated that the company decided to invest in São Mateus because of the location. “We are harmed by transport costs that a continental country like Brazil generates to send products from the South to the rest of the country, especially to the East and Northeast,” Zattera said. “The location of the new unit will bring logistical benefits, which will reduce the distribution costs in Brazil and also for the exports.”

São Mateus was also selected because Agrale’s client Volare, a subsidiary of bus manufacturer Marcopolo, will start manufacturing buses there. “We will be close to our partner, helping in all production process,” explained Zattera.

After signing the intentions protocol to build the facility, Agrale will now work toward acquiring the licenses to start construction at the site. Plans indicate that the plant will have 7500 m² as a first stage, while a total eventual facility of 20 000 m².

The new plant will be the fifth Agrale unit. The company currently has three facilities in Caxias do Sul city, Brazil, and one in Mercedes, a province of Buenos Aires, Argentina.

Last year, Agrale had total sales of US$ 568 million.