MAN trucks is importing semi-knockdown (SKD) kits from Germany to Brazil to support production of its TGX and TGS range of trucks at the company’s plant in Resende which officially began this week. It is the first time the trucks will be available to the South American market.
“We are optimistic about the economic development in Brazil and believe there will be further growth in 2010. This is one item of proof that our country has overcome the effects of the global economic crisis," said Roberto Cortes, CEO of MAN Latin America.
The new assembly line is designed for annual capacity of 5,000 trucks and following an initial test phase for assembly, which will run over the next few months, the company is aiming to raise local content for production to at least 60%.
By 2011, when the first orders will be delivered to three of Brazil’s largest transport operators–Julio Simoas, Arcom and Binotto–MAN states it will have established a supplier park in the immediate vicinity of the Resende plant with just-in-time feed to the facility.
Three of MAN Latin America’s suppliers will have their own production facilities at the park, with ArvinMeritor supplying axles, Maxion providing chassis assemblies and Suspensys supplying suspension systems.
Logistics contracts for supply from the park have yet to be established.
MAN is investing just under €100m (BRL 235m, $135m) in the new production line and supplier park.
The trucks will be sold in Brazil via the Volkswagen dealer network which is run by MAN Latin America.