Two Brazil auto-parts makers invest in China

Shanghai, May 4 (Gasgoo.com) Sabó and Marcopolo, two Brazilian-based manufacturers have established their auto-parts plants in China since the beginning of 2008. Located in the Wuxi Industrial Park, the Sabó components plant will start its operation in October, while the Marcopolo’s facility will go into production in December this year.

Sources from China Ministry of Commerce on May 4 said two Brazil enterprises have announced their investment in China’s automobile components production this year. In March, Marcopolo’s plant settled down in the Jiangyin Development Zone. It is reported that the facility will begin to operate in December to produce mainly export products. It is estimated that the plant will generate $100 million in sales in the first year and will hit a $1billion annual sales volume 5 years later. In April, Sabó announced it will invest 10 million euros in the Wuxi Industrial Park for an auto-parts producing facility, which is the sixth overseas enterprise of Sabó.

Brazil is the seventh largest auto parts manufacturing country in the world. In 2007 its auto components industrial output posted $35.95 billion, with the export and the import amounting to $9.1313 billion and $9.2155 billion respectively. Simultaneously, its total auto parts trade with China was already close to $ 0.5 billion, among which Brazil exported for $ 147 million and imported for $ 346 million.