MercoPress. South Atlantic News Agency

Hyundai Group signs agreement to build industrial lifts plant in Brazil

Hyun Jeong-eun, chairwoman of Hyundai Group, and Governor Tarso Genro (L)

The first Asian factory of industrial and residential lifts in Brazil will be built in the southern state of Rio Grande do Sul, it was announced Sunday in Seoul, Korea by the Hyundai Group.

The news was released during the visit to Korea of Rio Grande do Sul governor Tarso Genro, who is leading a business delegation to Seoul and other industrial cities of the Asian country.

The president of the group, Hyun Jeong Eun and Governor Genro signed the protocol of understanding. Details of the type of plant, estimated production and investment involved have yet to be worked out. Nevertheless in forty days time the location for building the factory will be revealed and construction is forecasted to begin in the first quarter of 2012.

Victor Park one of Hyundai Group director said that production will evolve according to market demand and that the whole investment is expected to create anywhere between 5.000 to 15.000 jobs.

“Hyundai is convinced that Brazil is a major player in the world scenario, which helps to explain their interest in the country; they were also quite impressed by the industrial development and labour qualifications that Rio Grande do Sul can provide for the enterprise”, said governor Genro.

Genro also underlined the importance of an adequate infrastructure for the mounting of the plant and said the State was drafting tax incentives that indicated as a possible site for the factory somewhere to the heart of south of Rio Grande do Sul.

The state with its diversified economy is one of the main contributors to Brazil’s GDP behind Sao Paulo, Minas Gerais and Rio do Janeiro.

The auto branch of Hyundai has managed to capture a significant percentage of Brazil’s market particularly in the vans niche and heavy equipment. Analysts believe the factory is part of a deal brokered with the Brazilian government to compensate the growing presence of the Korean group in the auto sector.

Three weeks ago Brazil slapped non automatic import licences on the car and auto parts industry in an attempt to contain the avalanche of imports mainly from Asia and the EU. In the case of Asia, China and Korea were specifically mentioned.