CNH Global announced plan to invest R$600 million (about U.S. $340 million) to build a construction equipment factory in the state of Minas Gerais, north of Sao Paulo. The company signed a deal with the state at the Turin, Italy, headquarters of its parent company Fiat Industrial.
The plant in Montes Claros, Minas Gerais, will add to the company’s presence in the state, which also 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.
“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 new plant is scheduled to begin operations in 2014, and is expected to generate about 2,700 jobs, 700 directly and 2,000 from a supplier hub for parts and components in the vicinity. The total area of the Montes Claros complex is expected to reach 2 million square meters, with 700,000 square meters dedicated to the plant itself.