Manitowoc to have a factory in Rio Grande do…

Passo Fundo will be the new home of the multinational crane manufacturer.

Published in the Jornal do Comércio on January 18th, 2011.

Executives of the Manitowoc Crane Group were at the Piratini Palace last afternoon to sign an investment intent declaration with the State government and the government of Passo Fundo, the city where the American company is likely to build a production facility. The multinational company plans to invest BRL 70 million in the Passo Fundo facility within the next five years, and may expand after such period. Having 15 industrial sites in the USA, Europe, Japan, India, and China, Manitowoc chose Passo Fundo to build its first production facility in Latin America, where it intends to produce three models of hi-tech heavy cranes that will be marketed all over Latin America.

Initial revenue estimates range from BRL 400 million to BRL 600 million. At first, 200–250 cranes are likely to be produced per year, but such amount will be that of 800 units in 2018. “We have been marketing various types of high lifting capacity cranes to Brazil for 20 years now. Now, it is time Brazil stops importing and starts producing some of that equipment,” highlighted Manitowoc’s Executive Vice President, Lawrence Weyers, during a meeting with the governor in charge, Beto Grill, and the mayor of Passo Fundo, Airton Dipp. The next step towards the deployment of the production facility will be the ratification of the agreement with the State government.

It is estimated that the company will start construction 60 days after the ratification, in a 45 hectare area in the industrial district of Passo Fundo, where the company will produce cranes for uneven land, cranes for civil construction, and cranes for commercial trucks. At first, 85 direct and 250 indirect jobs will be created.

“We want the factory to be ready 15 months after construction starts,” says the responsible for the Manitowoc Crane Group Latin America, Mauro Nunes da Silva. According to him, various industrial buildings will be erected at the place. “Within six years, the Passo Fundo site should generate one thousand direct and indirect jobs,” he estimates. He also highlights that, among the Bric countries, Brazil was the only one that did not have a Manitowoc factory yet.

Also according to Silva, Passo Fundo was selected after negotiations and studies were conducted in three Brazilian states and cities. “Among other issues, the manpower in Rio Grande do Sul offers the most attractive costs. In addition to that, tax incentives and the donation of the realty were very important,” he highlights, in reference to the package of initiatives requested to the city of Passo Fundo, in order to reduce taxes paid and, consequently, allow the company to be competitive and make the project feasible. Among the benefits offered by the city: a 45 hectare area, paved access, water, power, and 10-year property tax exemption were granted.