Fiat
Industrial's CNH division has signed a 'Memorandum of
Understanding' with the state of Minas Gerais, Brazil,
to lay the groundwork for a R$600 million investment in
a new construction equipment plant in Montes Claros, in
the northern region of Minas Gerais. The Memorandum was
signed at Fiat Industrial’s headquarters in Turin,
Italy, 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
reach 2 million square meters, with 700 thousand square
meters dedicated to the plant itself.
