Sumitomo Opens Brazil Facility

Sumitomo Heavy Industries, Ltd. (SHI) recently held the opening ceremony for its newly completed plant in the city of Itu, Sao Paulo, Brazil on Tuesday, November 22, 2011. The plant, which is operated by SHI's local subsidiary, Sumitomo Indústrias Pesadas do Brasil Ltda (SHIB), was built at a total investment of 130 million Real (approximately $73 million USD). It will manufacture gear speed reducers not only for the Brazilian market, but also neighboring countries throughout the Americas. SHI's gear speed reducer products are used with various motor components to drive cooling towers, mixers, conveyers and other equipment. The plant will begin production with a focus on heavy equipment industries such as mining, steel production, sugar manufacturing and brewing as its target markets. The Brazilian plant becomes the eighth major overseas gear reducer manufacturing center, joining similar facilities in China, the United States, Germany Belgium and Vietnam. According to SHI President Yoshinobu Nakamura, "The Brazil plant becomes our newest gear reducer factory. In our growth strategy for this business, we are placing our focus on markets in developing countries, and we have great expectations for Brazil."

Mateus C. Botelhos, a representative at the Brazil plant, also expressed his enthusiasm, "Our goal is to bring the Brazil plant online and expand operations quickly." The plant currently covers a total area of 20,000 m2 which includes factory 11,200 m2 and the office building 2,400 m2, and operates with a workforce of 60 employees. Sumitomo Indústrias Pesadas do Brasil Ltda owns a total of 447,000 m2 of land and SHI will consider future expansion as it's business grows in Brazil.