Marcopolo spends up

Expansion hasn’t stopped at Australia as Marcopolo continues to shore up its manufacturing capacity for global export

Marcopolo spends up
Marcopolo spends up

By David Goeldner | June 15, 2012

The recent buyer of Australia’s Volgren bus manufacturing enterprise, Brazil’s Marcopolo is on track to spend AUD $220 million over the next four years in its wide-ranging export investment program.

The spend has been revised up from AUD $171 million due to expected high demand for buses and coaches in emerging markets.

Marcopolo CEO José Rubens de la Rosa, pictured, says the investment increase of AUD $48.9 million was due to the company’s aggressive growth plan for the next few years in Brazil and abroad, and also the prospect of higher domestic demand in Brazil.

"The bus demand all over the world will increase, albeit not in a linear fashion nor in all regions, and therefore we need to be efficient and competitive to offer the right product for each growing market," says de la Rosa.

"Marcopolo, like any Brazilian company that wants to be internationally competitive, needs to constantly seek higher levels of productivity, economies of scale, and automation with a strong focus on cost reduction, as well as qualification and training.

"These are our company’s main drivers, and the investment expansion exactly takes advantage of the synergies that Brazilian market offers today, making us even more competitive."

Much of Marcopolo’s spend will be in southern Brazil at Caxias do Sul where the company has two factories, and at a new factory to be completed at the coastal city of São Mateus which will specialise in minibuses.

Exciting plans appear in store for the Caxias do Sul manufacturing hub with the construction of new administrative facilities, a modern logistics centre, and a training centre.

Meanwhile, Marcopolo’s investment at São Mateus forms part of an export strategy tied to growth in Central and South American markets.

Company director Milton Susin says the decision to install a factory and distribution unit at São Mateus was based on supply and logistics reasons with proximity to a harbour, deemed essential to aim at foreign markets.

"The plant will make vehicles for export in order to meet the growing demand for our products in markets such as South American and African countries, as well as north and northeast regions," Susin says.

Marcopolo’s current investment strategy forms part of corporate goal to reach R$1 billion (AUD $485 million) invested between 2007 and 2016, and to acheive consolidated net revenues of R$ 6 billion (AUD$2.9 billion) by 2016.

The company has over 18,000 employees globally and recorded net revenues of R$ 3.368 billion ($AUD $1.6 billion) in 2011, producing 31,526 units.

Based in Brazil, Marcopolo also operates in Australia, South Africa, Argentina, China, Colombia, Egypt, India, Mexico, and Russia.

Marcopolo CEO José Rubens de la Rosa is expected to be in Australia at the start of July for the annual Bus Association of Victoria’s Maintenance Conference and Bus Expo.

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