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HPE Factory in Goiás Negotiates with Chinese Automakers to Start Local Production via SKD and CKD, with Official Announcement Expected by December and Possibility of Increasing Localization within One Year.
HPE confirms negotiations for the HPE factory in Goiás, in Catalão, to host the localization of vehicles from a Chinese brand through SKD and CKD, and the partner’s name is expected to be announced by the end of the year, according to CEO Mauro Correia.
According to the website Notícias Automotivas, the plan foresees initial integration of processes within seven to eight months for partially or fully disassembled kits, with the possibility of advancing to production with greater localization within one year.
The HPE factory in Goiás is currently responsible for local production of Mitsubishi and Suzuki.
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With the arrival of several Chinese automakers in the country, HPE’s plant in Catalão has become an alternative for those looking to produce in Brazil and avoid the 35% import tax on finished vehicles.
According to the company, the negotiations include more than one foreign group.
The website AutoData cites GAC as one of the interested parties, but the Brazilian group is currently not confirming names.
According to Mauro Correia, “the name will be revealed by the end of the year”.
What Is Under Negotiation
The agreement under discussion would allow the HPE plant in Catalão to be used by one or more automakers simultaneously, with shared production structures.
This arrangement is possible because the industrial complex has complete stages of painting, stamping, bodywork, welding, and final assembly.
The HPE factory in Goiás already operates with an engineering and design team, which shortens adaptation times and speeds up the learning curve for a new partner. Correia describes the path of industrialization in stages.
“There is a whole stage of integration and operational development. It depends on the partner’s decision: they can bring disassembled kits to finalize assembly and painting here and then evolve to fully local production, with localization of some components,” he stated.
The executive adds that integration in SKD or CKD takes “seven to eight months,” while expansion to a higher level of local production may require “up to one year,” depending on the pace of localization.
How SKD and CKD Work
SKD (semi knocked down) and CKD (completely knocked down) are industrialization models in which the vehicle arrives in kits.
In SKD, the car comes partially disassembled, and the factory performs final stages such as painting, supplementary welding, and assembly.
In CKD, disassembly is complete, requiring a greater number of local operations and generally more integration with suppliers in Brazil.
These modalities help automakers to start production faster and gradually increase local content, which can reduce logistical and tax costs and facilitate the homologation of components.
Why Catalão Stands Out as an Alternative
The HPE plant in Catalão has accumulated years of operation with the brands Mitsubishi and Suzuki, giving it a history of quality and certified processes.
In addition to the installed infrastructure, its location in Goiás favors logistics for various markets in the Midwest, Southeast, and Northeast.
Another attraction is the possibility to share lines and gain scale with more than one brand, diluting fixed costs.
This combination of factors explains why the HPE factory in Goiás emerges as one of the preferred addresses for Chinese brands interested in localization.
Deadlines and Stages of Integration
According to the company, the initial phase involves:
- Tooling Adaptation
- Team Training
- Quality Process Validation
At this stage, the partner may choose SKD to accelerate the entry into production.
Once integration is complete, the operation can evolve to CKD and, later, to a model with increasing local content, as suppliers are installed and agreements with the supply chain are made.
Correia summarizes that the “seven to eight months” timeframe covers the maturation of SKD or CKD, while the transition to a “more complete” level, with greater localization, tends to take up to twelve months.
Installed Capacity and Possibility of Hosting More Than One Brand
The HPE factory in Goiás was designed for diversified production flows.
The presence of a complete painting line, stamping, bodywork, welding, and final assembly allows for the absorption of different automotive projects with incremental adjustments.
For potential partners, this reduces the need for robust initial investments.
For HPE, it opens up the opportunity to optimize the utilization of the plant and maintain a high occupancy rate at the HPE plant in Catalão.
The executive himself emphasizes: “We have a well-structured and consolidated operation. In Catalão, we have an engineering team, design, and a whole production system already installed, which generates interest among potential partners.”
What Is Known and What Is Still Unknown
HPE confirms negotiations and the estimated schedule for productive integration. It also confirms that the announcement of the partner is expected to occur by the end of the year.
Regarding who the automaker will be, the company is not revealing names at this moment. There are mentions in the market of GAC as one of the interested parties, but it is not possible to officially confirm the choice.
Thus, the HPE factory in Goiás remains a potential hub, while commercial and portfolio details remain confidential.
Expected Impacts on the Market
If confirmed, the establishment of a Chinese brand at the HPE plant in Catalão tends to increase competition among SUVs, sedans, and light utility vehicles.
Local production can shorten delivery times, increase the offer of versions, and encourage local content, benefiting the auto parts supply chain.
From the consumer’s point of view, localization usually favors after-sales services and availability of parts.
For the state of Goiás, this movement supports direct and indirect jobs and can attract new investments from automotive suppliers.
Timeline and Steps Until the Partner Announcement
The company’s internal timeline indicates the completion of negotiations and the disclosure of the partner’s name by December.
Until then, technical studies, plans for workforce qualification, and mapping of the supplier network necessary for the transition from SKD to CKD and, in the future, to higher levels of localization will continue.
The HPE factory in Goiás has space and processes to accommodate this advancement. What remains to be seen is: which brand will be announced and which models will be added to the Catalão line.
What impact do you expect to see first if the partnership becomes a reality: more competitive prices, shorter delivery times, or an expansion of the offer of versions produced in Brazil?
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