Shaanxi Automobile, a heavy-duty truck maker in China, will begin production in Brazil of its trucks according to local Chinese media SinoCast. The truck plant is expected to be built with Metro Shacman, a Brazilian truck maker. The companies will begin production of the joint venture plant in Tatui in the city of Sao Paulo, Brazil. The project is expected to have investment of USD80 million and will cover 12,000 square metres. The plant is expected to assemble trucks from kits sent from China.
Significance: The Shacman brand of trucks are made by Shaanxi in China at the plant in Xian. Shanxi began the export of the Chinese built Shacman trucks in 2012 according to reports by Automotive Logistics. Meanwhile in May 2013, it was announced in local media China Automotive Review that Shaanxi and Shacman will invest USD200 million in a plant to produce heavy-duty vehicles in Brazil. The plant in Tatui will have capacity to assemble 10,000 units per annum. With increasing tariffs on imported vehicles, it is likely that Shaanxi and Shacman aim to reduce costs by assembling trucks in Brazil.
