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Palfinger To Manufacture Cranes In Brazil

Posted on July 9, 2014

Austria’s Palfinger group has formed a joint venture with Brazil’s Koch Metalúrgica for the manufacture of offshore cranes. The joint venture company, Palfinger Koch Montagens Industriais, will operate out of a new plant in Guaíba city, Rio Grande do Sul state, Brazil.

The company already has a US$90 million contract for the production of 28 cranes — 14 lattice boom cranes with a lift capacity of 63 tons at 35 m and 14 knuckle boom machines with lift capacities of 85 tons at 20 m — for seven drilling vessels ordered by the Jurong Aracruz shipyard, in Espírito Santo state.

“For the first four vessels, there will be 60% local content,” said Suzana Barros, the president of the joint venture. “The following three will have 65% local content. This was a key factor to win the bidding.”

Covering an area of 9000 m², the joint venture will invest US$2 million in the plant and will generate 80 jobs initially. The first products could be delivered as early as February 2015, the company said.

The partnership between Palfinger and Koch Metalúrgica started two years ago as a consortium arrangement. “We have been in Brazil for three years,” said Barros. “During this period, we’ve been contemplated by several other projects, but Jurong was the first to demand local content. Before setting physically in Brazil, Palfinger had been selling its products through international sales points.”

It is not the first investment Palfinger has made in Brazil. In 2001, the company acquired Madal, a Brazilian manufacturer of truck-mounted telescopic and articulated cranes located in Caxias do Sul, Rio Grande do Sul state. In 2012, it took over the control of Tercek Usinagem de Precisão Ltda., also in Caxias do Sul, for the production of electric vehicle elevators for urban buses for the disabled.