Brazil’s booming economy fuels infrastructure demand

The emergence of Brazil as a major economic force and its need to improve infrastructure is proving a magnet for investment. Patrick Smith reports Brazil is now the sixth biggest economy in the world according to its Finance Minister Guido Mantega. The largest country in South America with a population of 190 million and one of the BRICS, (Brazil, Russia, India, China, South Africa, Brazil’s economy grew 2.7% in 2011 and is now worth $2.5 trillion, having overtaken the UK. With big oil and gas reserves stil
July 18, 2012
metso
Metso launched three new products into the Brazilian market including the HRC crusher

The emergence of Brazil as a major economic force and its need to improve infrastructure is proving a magnet for investment. Patrick Smith reports

Brazil is now the sixth biggest economy in the world according to its Finance Minister Guido Mantega.

The largest country in South America with a population of 190 million and one of the BRICS, (Brazil, Russia, India, China, South Africa, Brazil’s economy grew 2.7% in 2011 and is now worth $2.5 trillion, having overtaken the UK. With big oil and gas reserves still being discovered many companies have and are investing heavily in Brazil, which will host the 2014 World Cup and the 2016 summer Olympic Games.

More recently it was the country’s biggest city, São Paulo, that attracted interest as the 8th M&T Expo, the largest to date and the largest trade show for the construction and mining industries in Latin America, was held at the Centro de Exposições Imigrantes exhibition ground. It featured 498 exhibitors (226 international); over 1,000 brands, and attracted an estimated 45,000 visitors.

According to M&T Expo organiser, the Brazilian Association of Technology for Equipment and Maintenance (Sobratema), some R$1.2 billion (US$ 666 million) of business was expected to be carried out during the five-day exhibition.

“At the moment the economies of Europe and the United States are not so bright for our industry so the eyes of the world are turning to emerging economies such as Brazil, China and India,” said Alfonso Mamade, Sobratema president.
Indeed they are. Major construction equipment manufacturers took large stands and the opportunity to launch new equipment and announce development plans.

1222 Terex unveiled what is said to be the first mobile asphalt batch plant designed and manufactured in Brazil. The Terex SB150HM (Smart Batch 150 High Mobility) plant, capable of producing up to 150tonnes/hour, has taken two years to develop and it is anticipated that it will be in demand in Latin America as well as globally, particularly in Africa, Russia and the Middle East.

Meanwhile, Ciber (one of five brands that make up the 364 Wirtgen Group) introduced its new modular Ciber UACF iNova 1200 P1 asphalt plant, capable of producing up to 120tonnes/hour including warm mix asphalt.

Other Wirtgen Group companies’ equipment was also on display including a variety of rollers from 228 Hamm, whose 3411P compactor roller was used on São Paulo’s Cumbica Airport; 1194 Vögele’s Super 1103-2 and Super 700 asphalt pavers; Wirtgen’s W100 and W200 cold milling machines and the WR 2400 cold recycler along with a Kleeman crusher.

Another new product offering was the 2300 Komatsu HB 205, the world's first hybrid excavator, which is now being manufactured by the company's Brazilian subsidiary in Suzano, São Paulo.
178 Caterpillar’s 20 machines ranged from the smallest skid steer loader to a 36tonne hydraulic excavator along with its diesel engines and dealer network services including rental.

Seen for the first time in South America were Caterpillar’s AP255E compact asphalt paver; the 226B3 and 242B3 compact skid steers and the H75E hydraulic hammer.

Also launching a number of new products was 206 Dynapac and these included the Dynapac Tamping Compactor CT3000, with an operating weight of 21tonnes and the CA6000 new generation of single-drum rollers for soil, which has an operating weight of 19tonnes.

Chinese construction equipment manufacturer 269 LiuGong, one of a large number of Chinese companies present including 1170 Sany, 1171 Shantui, 2490 XCMG, 5316 SDLG and 4897 Shanbao, showcased 14 machines including its new 766A midsize backhoe loader with a Tier 3 299 Perkins engine. It also announced plans to build a factory in Brazil and is looking for a suitable site.

Sany Brazil launched 20 new machines including 5.5-46tonne excavators and highlighted a 43m reach concrete placing boom pump developed by 1259 Putzmeister, Sany Heavy Industry’s German subsidiary.
SDLG claimed sales of over 100 units at the event and showcased its LG918, LG938L and LG959 wheeled loaders. It also unveiled its newly launched excavators, the LG6150E, LG6210E, LG6225E, and LG6250E with capacities of 13.8, 20.7, 21.7 and 24.3tonnes respectively.

Another launch at M&T Expo was 2403 Sandvik Construction’s reintroduction of its 5076 Rammer brand of breakers to the market.

Glauco Teixeira, vice president construction sales area Brazil said: “The M&T Expo is a great opportunity for Sandvik Construction to show its commitment to offering high quality solutions to customers and to meet the great number of customers and visitors we usually welcome to our stand.”

2394 Volvo Construction Equipment Latin America, claiming the biggest stand at the show, says it is renovating and increasing its construction equipment lines, and at M&T Expo it launched the C series skid steer loaders and showcased its B series backhoe loaders, D series excavators and F series articulated haulers. It also showed visitors its CareTrack monitoring system and the company’s EcoOperator, a training programme that targets improving operator performance in Volvo equipment.

The new line of skid steer loaders was one such novelty with the range moving from the current five to nine models, MC60C, MC70C, MC85C, MC95C, MC105C, MC115C, MC125C, MCT70C and MCT125C.
“Safety, versatility, comfort and easy access for maintenance are the main features of Volvo skid steer loaders,” said Yoshio Kawakami, president of Volvo CE Latin America.

New Holland claims a quarter of the grader market in Brazil with its main factory in the state of Minas Gerais being a main centre of development and production for its graders, which have been upgraded to include the RG140B, RG170B and RG200B.

To celebrate 40 years of manufacturing skid steer loaders the company created a logo to be displayed at industry events, it also presented its latest telehandlers, the LM1445 and LM1745.

176 Case Construction Equipment has invested about R$7 million (US$3.4 million) to develop a totally redesigned backhoe loader model, the 580N, which is made at the Contagem, Minas Gerais plant, and which was launched at M&T Expo.

Case also launched its line of midi excavators, models CX75SR and CX80, which means it now has a portfolio of 32 products in Brazil, a 150% growth since M&T 2006.

6934 Metso launched three new products into the market including the HRC crusher for the production of thin fractions; the Metso C120 jaw crusher and the tapered HP3, a new generation of crushers which are said to follow the success of the HP3, HP4 and HP5.

257 John Deere announced its operation dedicated to construction equipment at M&T Expo.
Backhoes, wheeled loaders and excavators will be produced in Brazil by the end of 2013 when two under-construction factories will be ready, and the company will maintain the import of a comprehensive line of motor graders and crawler dozers.

The Brazilian factories, one in partnership with 233 Hitachi Construction Machinery, involve a total investment of $180 million: $124 million by Deere only and the rest by Hitachi.

Both are being built in Indaiatuba, São Paulo, John Deere’s regional headquarters in Latin America.

1250 Astec Industries premiered its recently formed joint venture in Brazil, Astec do Brasil Fabricacao De Equipamentos LTDA.

The jv is building a 10,200m² manufacturing facility in Vespasiano, Minas Gerais with an initial investment estimated at US$25-$30 million, and products initially manufactured will include Astec aggregate and mining jaw and cone crushers with expansion to additional products and brands in the future
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