Fiat Automóveis is to
invest 3 billion reals (US$1.8 billion) to construct a
new factory in the Port and Industrial District in Suape
in the State of Pernambuco, which will become the
Italian carmaker's second plant in Brazil.
This investment forms
part of the 10 billion reals that Fiat Automóveis had
already planned to invest in Brazil between 2011 and
2014; the other 7 billion reals expenditure will be focused on the
Minas Gerais region where Fiat has its current Brazilian
factory.
The new plant will
represent a strategic investment for Fiat Automóveis,
the State of Pernambuco and the Northeast Region, as it
forms part of a comprehensive program of
industrialization and economic and social development
for the Region. The geographical choice is less logical
though for Fiat as the State of Pernambuco is one of
Brazil's smallest regions, well away from the country's
main population areas which will significantly increase
the transportation of inward components and finished
vehicles. The Industrial District in Suape, which
started in 1975 and has around 70 enterprises on site,
hasn't been a runaway success story so far so it is
expected that Fiat has been offered significant
incentives in order to locate its second plant there,
which will give the somewhat stalled venture a very
timely boost.
The 3 billion reals
will be invested in construction of a manufacturing
facility and R&D center, design and development of new
products and platforms, in addition to training for
employees. According to Fiat the "plant will be at the
center of an industrial zone covering 4.4 million square
meters and located in Suape's Industrial District. This
zone will also house component and systems suppliers in
a modern commercial and manufacturing complex, offering
significant advantages in terms of logistics and
efficiency."
The new plant will
have a production capacity of some 200,000 vehicles per
year and will produce new models, developed in Brazil,
for the domestic market, as well as other Latin American
markets. Once fully operational, this industrial zone in
Suape could create as many as 3,500 direct jobs, with
positive repercussions also for other sectors. The
project also includes establishment of a training center
to benefit the entire zone, an initiative of the State
of Pernambuco.
"The plant to be built
in the State of Pernambuco," said Sergio Marchionne,
Fiat Group CEO, "represents a very important step for
Fiat in strengthening its international presence.
Brazil, where we expect to sell more than 1 million cars
per year by 2014, is strategic to our expansion. It is
also the Group's objective to contribute further to the
economic, technological and industrial development of
this country, where we have operated in the automobile
sector for nearly 40 years."
