MercoPress. South Atlantic News Agency

Brazilian bus manufacturer expands into the Australian market

Marco Polo produces 30.000 buses annually from 11 plants worldwide

Brazil’s Marco Polo one of the world’s largest manufacturers announced on Tuesday it had purchased a 75% stake in the Volgren Australia bus building industry an operation involving 53 million dollars.

According to the information sent to Brazil’s Securities commission, CVM from the Sao Paulo stock exchange, Marco Polo said the agreement with Volgren enables the Brazilian corporation to acquire the remaining 25% stock in three years time and thus full control of the Australian company.

In a statement from Volgren Australia, the Grenda family who own the company state that they will retain a minority interest in the Volgren business, retaining local ownership and ensuring a smooth transition for staff and customers.

Volgren is the largest bus body builder in Australia and employs more than 560 people. The company has a market presence all over the Australian territory with more than 40% market share. It has factories in Dandenong (Vic), Brisbane (Qld), Malaga (WA) and Tomago (NSW). In 2010-11 the company posted sales of 698 units and revenue of 207.1 million dollars.

Founded in 1949, Marcopolo is listed company on the Brazilian stock exchange and is still controlled by the original founding family.

As one of the world’s largest bus manufacturers it produces around 30,000 buses annually from 11 plants worldwide, including a components factory located in Changzhou, China.

Marcopolo employs more than 18,000 people, has a turnover of around 1.6 billion dollars and produces a variety of products on predominantly European chassis, including luxury coaches, intercity buses, city buses and mini buses.

The acquisition is part of Marcopolo's expansion strategy and represents an important step towards the company’s geographical expansion plans in foreign markets.

Grenda CEO Geoff Grenda says the two companies have a close alignment on their core values around people and customer service. He adds that the purchase is a positive endorsement of Volgren’s people, products and processes, its position as market leader and its potential to grow further.

“We are particularly pleased to be associated with a company that shares our philosophy around people and are looking forward to working with them to ensure Volgren remains at its rightful place at the top of the Australian bus building industry,” he says.