Hyundai Heavy to build factory in Brazil

South Korean manufacturer Hyundai Heavy is to expand into the Latin American construction equipment market by investing US$ 150 million in a new factory in Brazil.

The company has signed a memorandum of understanding with Rio de Janerio and Itatiaia to build a new, 562000 m² construction equipment manufacturing base. The deal would see authorities from both cities help develop infrastructure for the factory, including laying down electricity, water and gas supply lines, and paving entry road.

Scheduled for completion by the end of 2012, the new plant will be capable of producing 2000 items of construction equipment a year, including excavators, wheeled loaders and backhoe loaders. Hyundai Heavy said it planned to extend this annual production capacity to 4000 units by 2014.

The company said the new Brazilian plant would serve as its South and Central America base, and help it to secure a share of Latin America's booming construction equipment market.

"The Brazilian construction equipment market is expected to continue growing as various infrastructure projects such as express train, express highway, and hydroelectric power plant projects are expected to win approval in the run-up to the 2014 World Cup and 2016 Olympic Games," the company said.