Halla Visteon Climate Control has begun production at its plant in São Paulo, Brazil, according to a company press release. The plant in Atibaia assembles heating, ventilation and air conditioning components for the regional auto industry. The company marked start of production with a ceremony on 13 August. YH Park, president and CEO of Halla Visteon Climate Control said, "This new facility in Brazil represents an important expansion of HVCC's global footprint to capitalize on business opportunities and support our customers' global platforms. We are pleased to expand HVCC's global reach to South America and to provide localisation opportunities to customers in this important region." The new facility has 3,000 square metresof manufacturing space, with room for expansion available. Production began in early June.
 

Significance: Although Brazilian growth prospects have been slowed by the economic climate in 2014, it is still expected to be a source of growth in production and sales. The country has been aggressive with tax policies designed to encourage not only local production but also local research and development. At the same time, Halla Visteon is looking to expand its customer base beyond its notable reliance on Hyundai, and the Brazilian plant may help. Hyundai is, however, also increasing Brazilian production and seeing sales success with the HB20, sales of which have increased 14.8% over the first six months of 2014, in a market that declined by 7.4% in the same period. Halla has not indicated the expected OEM customer base for its new plant.