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The Investment in the Factory Will Not Only Boost the Economy of Contagem, Minas Gerais, but Will Strengthen the Position of CNH Industrial as Global Leader in the Heavy Equipment and Construction Market.
CNH Industrial, through its subsidiary Case Construction Equipment, revealed last Wednesday (08/23) an investment of US$ 18.5 million in the factory located in Contagem, in the Metropolitan Region of Belo Horizonte, Minas Gerais. This financial investment, equivalent to about R$ 90 million, aims primarily to transform the manufacturing unit into a significant global source of supply for crawler tractors. The announcement was made official by Carlos França, head of Case for Latin America.
Contagem Factory Will Become a Global Supply Center for Crawler Tractors, Boosting the Local Economy and Ensuring Jobs
A series of reasons led to the choice of this location for the investment. According to França, the structural capacity of the Contagem plant to absorb production was a crucial factor.
The proximity to an agile and efficient supply chain also influenced the decision.
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In addition, the strategic geographical location, with access to urban centers and ports, became a favorable means for distributing the manufactured products.
França emphasizes: “Human resources are of utmost importance. Our employees’ ability to produce with a high level of efficiency and quality, meeting international standards of excellence, is the core of this investment. We want to supply the most demanding markets with globally quality products.”
The Contagem factory adheres to the strict World Class Manufacturing standards, which emphasize continuous improvement and global process optimization.
The Investment by CNH Industrial in Minas Gerais Aims to Serve Markets in the USA, Europe, Asia, and Latin America, with a Focus on Quality and Productive Efficiency
Part of the investment amount has already been directed towards modernizing and expanding the facilities of the Contagem factory, which dates back to the 1970s.
This initiative aims to increase production capacity, which will be directed to the markets in the United States, Europe, Asia, Pacific, and Latin America.
With the investment, the production capacity of the crawler tractors line will be raised to 1,100 units annually.
The company, which already offers a varied range of tractor models, such as the 650M, 750M, 850M, 1150 M, 1650L, and 2050M, also produces four other categories of machines in Contagem: loaders, hydraulic excavators, motor graders, and backhoe loaders.
According to França, the company is on an upward production trajectory and expects this trend to stabilize by 2024.
Modernization of the Plant Will Strengthen International Supply Capacity, While Maintaining Focus on Quality and Efficiency
Although the current investment is not expected to immediately generate new jobs, França does not rule out the possibility of additional hiring when the production line is operating at full capacity, anticipated to be in a year.
Currently, CNH Industrial employs approximately 8,500 employees throughout Brazil, with about 1,600 of them in Contagem.
Regarding the economic scenario, França highlights that, despite a 15% decline in machinery sales in Brazil by July compared to the previous year, Case remained unscathed by this trend, managing to increase its market share.
Sobratema (Brazilian Association of Technology for Construction and Mining) forecasts the sale of 30,000 units of machines throughout this year in the country.
CNH Industrial, which has Case as one of its brands, has a global revenue of US$ 23.6 billion, divided into 76% in the agricultural segment, 15% in construction, and 9% in financial services.
A significant amount of US$ 1 billion was invested in research and product development in 2022. This figure is projected to increase by an impressive 60% in 2023, reaching US$ 1.6 billion.
