CNH is investing in a new construction equipment factory in Brazil
From left to right: John Elkann – Chairman, Fiat SpA; Gil Pereira - Secretary of Development for the Jequitinhonha's Valley, Mucuri's Valley and North of Minas Gerais; Dorothea Werneck - Secretary of Development for the State of Minas Gerais, Brazil; Antonio Anastasia – Governor of the State of Minas Gerais, Brazil; Sergio Marchionne – Chairman, Fiat Industrial and CNH; Cledorvino Belini - President, Fiat do Brasil and Fiat-Chrysler Latin America; Valentino Rizzioli - President, CNH Latin Americ
CNH is planning to build a new factory at Minais Gerais in Brazil in an investment worth some US$341.4 million (R$600 million). The factory will be located in Montes Claros, in the northern part of Minas Gerais. The firm has signed a Memorandum of Understanding with the authorities in Minas Gerais (Brazil) at Fiat Industrial’s headquarters in Turin, Italy. The agreement was reached during a visit by a Minas Gerais state government delegation, led by Governor Antonio Anastasia. “This agreement strengthens our ties to the state of Minas Gerais and reconfirms a commitment started 40 years ago with Fiat’s first investments in the region. Minas Gerais holds a prominent place in the Brazilian economy and therefore is an ideal location for Fiat Industrial, and for CNH in particular, to grow in Brazil,” said Sergio Marchionne, chairman of Fiat Industrial and CNH.
The plant in Montes Claros will add to the company’s presence in Minas Gerais, which includes a facility in Contagem. Originally established in 1970, the site was the first Fiat factory to be located in Brazil, and currently produces equipment for CNH’s construction brands, Case and New Holland Construction. The new plant is scheduled to begin operations in 2014. It is expected to generate about 2,700 jobs, 700 of which will be direct and 2,000 from a supplier hub for parts and components that will be established in the vicinity of the factory. The total area of the complex in Montes Claros is expected to be some 2,000,000m2, with 700,000m2 for the plant itself.