Manitowoc celebrates Brazilian anniversary with expansion plans
12 September 2013Manitowoc has celebrated the anniversary of the opening of its Passo Fundo, Brazil, plant with plans to expand the range of cranes built at the plant and increase eligibility for local financing. The US manufacturer's first Latin American factory began assembling cranes that were delivered in June 2012, and since then, the manufacturer said, production hasn’t slowed.
The firm said that since its inception, Passo Fundo has increased the amount of components it buys directly from Brazilian companies. Describing its operation, it added that the use of local suppliers helped keep costs low and give a quick turnaround time for customers. Although the company was also keen to stress that the new local components are heavily scrutinised at Manitowoc's Product Verification Center in Shady Grove to ensure they were similar to the components used in its US, Europe and Asia operations.
The use of local suppliers has meant that cranes being assembled at the factory are now eligible for BNDES (Brazilian Development Bank) financing, which is available from the Brazilian government. The company also has financing available through BNDES's FINAME (Financiamento de Máquinas e Equipamentos) program, which grants low interest rates to companies looking to purchase Brazilian products. These operations will offer services much like DLL (De Lage Landen), the bank that finances Manitowoc purchases in North America and Europe.
Manitowoc said that it has increased the number of models it produces at the Passo Fundo, with plans for more in the future. While the factory began by producing the 60t (65USt) capacity RT765E-2, the 75t RT880E and the 80t RT890E rough terrain cranes, it later added the 30t RT530E-2 and the 35t RT540E rough terrain cranes to production. In 2014, Potain will also begin producing tower crane mast sections in Passo Fundo.
Passo Fundo now also has re-manufacturing capabilities. The manufacturer began EnCORE operations in the summer of 2012, restoring a 220t capacity GMK6250L all terrain that was badly damaged by sea water. The refurbishment, Manitowoc says, cost the customer 40% less than purchasing a new crane
Mauro Nunes, general manager of operations for Manitowoc in Brazil, said: "Through Passo Fundo, we are able to ensure fast delivery times, expert advice and meticulous maintenance at a location that's in close proximity to our customers' job sites. We are continually improving the factory and its operation, ingratiating ourselves in the Brazilian market and increasing the variety of models we produce. And now all of these products are available for financing through local banks. We are confident that we can satisfy any Latin American customer's needs through our operations at Passo Fundo."
Improvements to the $75m Passo Fundo factory are continuing too, says Manitowoc, with upgrades, such as new machining and painting systems, installed at the factory. A new enterprise resource planning system has also been implemented in the past year.
