Portuguese 
English 
Spanish 
5 min of reading 
0 comments 
The Chinese giant Xinhongye Wire & Cable, valued at R$ 3.98 billion and supplier to BYD, Honda, Nissan, and GM, signed a letter of intent with the Blumenau City Hall to install a factory for electric vehicle components in Santa Catarina, with an estimated investment of R$ 200 million and the creation of 200 direct jobs.
A Chinese giant in electric vehicle technology is one step away from opening a factory in Blumenau, in the Itajaí Valley. Wuxi Xinhongye Wire & Cable Co., Ltd., one of the largest manufacturers of cables for electric vehicles, solar energy, and high-tech industry in China, signed a letter of intent with the Blumenau City Hall that formally initiates the process of installing a unit in the municipality. The estimated investment is up to R$ 200 million, generating about 200 direct jobs.
Mayor Egídio Ferrari returned from an official mission to China with the signed document and stated that the Chinese giant should immediately begin the procedures for opening a CNPJ in Brazil and structuring the operation in the city. The company, with a market value estimated at approximately R$ 3.98 billion, is headquartered in Jiangsu province, one of the largest technological hubs in the world, and supplies cables and components to automakers such as BYD, Honda, Nissan, and GM.
Who is the Chinese giant that wants to settle in Blumenau
Xinhongye Wire & Cable was founded in 2004 and is classified as a national high-tech enterprise in China.
-
A beach town in Santa Catarina will distribute 4 tons of sardines completely free of charge to the population next Thursday, with a limit of 2 kilograms per person, and the distribution will end when the stock runs out.
-
A YouTuber bought all the Easter eggs from the market, from the cheapest to the most expensive, weighed each one on the scale, and discovered that some brands deliver extra grams while others charge a fortune for little chocolate.
-
Central Bank reveals: public sector ends February 2026 with a deficit of R$ 16.4 billion; Central Government loses R$ 29.5 billion, state-owned companies R$ 568 million, gross debt rises to 79.2% of GDP in 12 months.
-
The largest executive jet in Brazil belongs to the Safra Family and is for sale: it is a 2002 Boeing BBJ, with a range of 11,500 km, 80 m² of interior space, a master suite, an office, and capacity for 18 passengers.
The Chinese giant specializes in the production of cables and electrical interconnection systems for sectors such as new energy vehicles, nuclear energy, robotics, and energy storage.
With over 300,000 square meters of industrial infrastructure, the company holds more than 70 registered patents and participates in the development of national technology standards in China.
The company’s portfolio includes photovoltaic cables, cables for electric vehicles, industrial cables, cables for robots, and energy storage systems. The Chinese giant has a global presence, with clients and distribution in countries across Asia, Europe, America, and Oceania.
Among its main clients are automakers BYD, Honda, Nissan, and GM, positioning Xinhongye at the center of the global electric mobility supply chain. With a market value of nearly R$ 4 billion, the company is one of the forces in the sector in Jiangsu province, home to some of the largest industrial hubs on the planet.
What the mayor of Blumenau brought back from China: the document that changes the game
According to the portal NDMAIS, Mayor Egídio Ferrari undertook an official mission to the cities of Changzhou and Wuxi, in Jiangsu province, where he met with local government representatives and the management of Xinhongye.
The result was the signing of a letter of intent that marks the transition of negotiations to a concrete phase: technical analyses, feasibility studies, and structuring the operation in Blumenau. According to Ferrari, the face-to-face contact was decisive: “There, it’s very much eye-to-eye. They wanted to be sure that Blumenau really wants this investment.”
With the document signed, the Chinese giant is expected to begin the procedures for opening a CNPJ in Brazil, acquiring land, and subsequently constructing the unit.
Representatives from the company had already been in Blumenau before the mayor’s trip, analyzing possible areas for the factory.
A month before the signing of the letter, NSC Total had already anticipated that Blumenau was one of the favorites to receive the investment, after Xinhongye had signed a protocol of intentions with the government of Santa Catarina through InvestSC.
Chain effect: the Chinese giant could bring an entire hub to Blumenau
The Xinhongye project in Blumenau could go far beyond an isolated factory. According to the mayor, the Chinese giant has shown interest in acquiring a larger area to enable the installation of other companies linked to the same production chain, which would transform Blumenau into a hub for electric vehicle technology and renewable energy.
“The idea is that not just one company comes, but that others also establish themselves here, forming a hub. This increases job and income generation,” highlighted Ferrari.
The city’s strategy is to use the investment from the Chinese giant as a gateway for new international investments. Another result of the mission to China was the recognition of the Brazil Center, an office aimed at connecting Brazilian and Chinese entrepreneurs.
The Blumenau City Hall intends to establish a partnership with the structure to facilitate negotiations and attract new investments, providing local entrepreneurs with support to access the Chinese market more safely and with guidance.
Next steps: what remains for the factory to come to fruition
Despite the significant progress, there is still no set timeline for the start of construction or the operation of the factory. The schedule depends on the completion of bureaucratic steps in Brazil and the technical studies that the Chinese giant is conducting on feasibility and structuring. The Blumenau City Hall emphasizes that the process follows structured phases and that the next advancements depend on the evolution of the studies by the company.
Even so, the municipal administration assesses that the project has moved from the realm of intentions to a concrete phase of development.
The formalization of the letter of intent with the Chinese giant represents a decisive step in Blumenau’s economic development strategy and could connect the city to global innovation chains in electric mobility. If confirmed under the announced terms, the investment of R$ 200 million and the 200 direct jobs will have a significant impact on the economy of the city and the Itajaí Valley region.
Blumenau on the route of electric vehicles: what the Chinese investment could mean for the city
The arrival of a Chinese giant supplier of BYD, Honda, and GM to Blumenau is not just an economic news; it is a sign of the city’s repositioning on the Brazilian industrial map.
If the project advances as planned, Blumenau will no longer be known only for the textile sector and Oktoberfest but will emerge as a hub for electric vehicle technology and renewable energy.
The investment of up to R$ 200 million and the prospect of creating a hub with multiple companies in the electric vehicle production chain could transform the local economy in the coming years. For now, the letter is signed, the CNPJ is in the process of being opened, and Blumenau is waiting.
Do you think Blumenau has the infrastructure to accommodate a technology factory for electric vehicles of this size? And can the presence of a Chinese giant like Xinhongye really create an industrial hub in the city? Leave your opinion in the comments.
Seja o primeiro a reagir!