Danfoss Expands Production In Brazil

By Mauro Belo Schneider

The Danish company Danfoss, which supplies hydraulic pumps, specifically axial piston pumps and circuits for the mobile equipment market, has announced the increase of local production in Caxias do Sul city, Rio Grande do Sul state, Brazil.

In the last three years, the company invested US$1.6 million (R$5 million) in the plant and now it intends to invest more US$3.3 million (R$10 million) before the end of 2018.

The current production of Caxias do Sul is exported to Argentina, Paraguay, Chile, Costa Rica and Peru. Danfoss said it uses 60% of local content in the products manufactured in Brazil.

Dirnei Antonio Datti, general manager at Danfoss Power Solutions Latin America, said that Danfoss has been selling its products in the South American country for more than 25 years and now the strategy is to produce instead of importing, reducing safety inventory and increasing local content.

“Our agricultural market is very healthy. We are achieving great sales results, even with the construction industry stuck. We believe in Brazil and in our customers,” Datti said.

Danfoss bought a plant in Caxias do Sul in 2001 for the production of directional controls. In 2008, the company moved to a larger operation with 10 000 m². Since 2010, it has implemented a plan of nationalizing new products.

“We have nationalized the PVG32 valves in 2015 and now we will nationalize part of our pumps and axial piston motors. We increased our number of employees in 10% and we will increase more 10% until the end of 2018,” he stated.

Datti explained that there are competitive advantages when producing products locally, instead of importing them. “We will also have the chance to expand our sales in Mercosur and other countries in Latin America,” he said.