Xinhuanet: Sany Heavy Industry: The Brazilian project is progressing smoothly

Source: Xinhuanet

Xinhuanet Rio de Janeiro, May 10 (Reporter Yang Limin) Cui Zhongyang, deputy general manager of Sany Group and general manager of Latin America, said in a telephone interview with Xinhua News Agency reporters on the 10th that the construction of Sany Brazil Industrial Park is progressing smoothly, and there is no "unspeakable hidden", and the so-called Sany "not building a factory due to geological structure reasons" reported by domestic media is untrue.

Li Haitong, Commercial Counselor of the Chinese Consulate General in São Paulo, who is inspecting Sany Brazil, also said in a telephone interview with Xinhua News Agency that the industrial park is located next to the highway, with convenient transportation, a good location, and the land has been leveled. There could not have been any geological structure here, and if there were, the local media would have reported it long ago.

Cui Zhongyang said that in 2007, Sany Group registered and established a wholly-owned subsidiary, "Sany Latin America Import and Export Co., Ltd." (Sany Brazil), in Sao Paulo, Brazil. In February 2010, Sany Brazil signed a letter of intent with the government of the State of São Paulo to invest US$200 million to build a factory, and in January of the following year, it completed the land acquisition of 568,000 square meters in Yakareí, São Paulo State. On January 8 this year, the earthworks and engineering design were successfully completed. Considering the existing leased plant capacity in Brazil, Sany Group took the initiative to adjust the pace of plant construction in Brazil.

Cui Zhongyang said that before purchasing the land, Sany hired an authoritative law firm and a professional company to conduct a comprehensive investigation of the land to ensure that there were no legal and geological problems. In order to enter the market as soon as possible, Sany Brazil leased a 20,000-square-meter factory building in San Jose, São Paulo State in June 2010 to build a production line while preparing for the construction of the industrial park, and imported the main sales model excavator from the Sany Domestic DivisionTruck cranesSKD parts are then assembled in Brazil. In January 2011, the first locally assembled excavator rolled off the production line; In April of the same year, the first truck crane rolled off the assembly line; In July of the same year, the 100th excavator rolled off the production line. In 2011, a total of 230 excavators and 65 truck cranes were rolled off the assembly line; In 2012, 238 excavators and 134 truck cranes were rolled off the assembly line. In February this year, Sany Brazil completed the assembly of its 500th excavator locally.

According to Cui Zhongyang, from the first quarter of 2014, the localized manufacturing of the kingpin tonnage excavator will be realized, that is, from the current import of parts and local assembly to the local procurement of raw materials for manufacturing.

In response to the media's question about the "adulteration" of Sany Brazil's performance, Cui Zhongyang said that Sany Brazil's sales have increased year after year since it entered Brazil, achieving sales of 200 million yuan in 2010, 710 million yuan in 2011 and 1.05 billion yuan in 2012. Sany truck crane's market share in Brazil has been higher than 30% for two consecutive years. In the first quarter of this year, Sany truck cranes had a market share of 43% in Brazil.