Expansion to focus on Brazilian operations to increase capacity and productivity
In order to be prepared for a higher demand for buses, expected to take place within the next few years, and to achieve the growth objectives for planned business, Marcopolo has revised its investment plan and will invest R$ 450 million in its operations until 2016, instead of the R$ 350 million announced in the second half of last year.
According to José Rubens de la Rosa, this investment increase in over R$ 100 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 demand that the Brazilian market should have by 2016. "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."
“Marcopolo, like any Brazilian company that wants to be internationally competitive, needs to constantly seek higher levels of productivity, economies of scale, 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. In that way, everybody wins: the country, our client, the company, our employees, and the community living where we are installed,” points out de la Rosa.
The new investments will be made mainly in Caxias do Sul units – where the company has two factories – and the installation of a new plant in São Mateus, Espírito Santo, for production of minibuses – of the Volare Business Unit, with focus on export. “We will invest R$ 100 million exclusively in the Caxias do Sul units in 2012 and 2013. We will build new administrative facilities, a new modern logistics center, and a new training center, in addition to developing and launching of new products, and the acquisition of the latest equipment for various sectors of the plant”, says the Marcopolo CEO.
With a focus on business expansion abroad and increase in exports, part of the new investments will be allocated to the Volare Business Unit, which will install a new assembly plant in Espírito Santo, in the city of São Mateus. According to Volare director, Milton Susin, the prospect of growth in foreign markets, especially in Latin America, urged the brand to expand production at a site that would allow greater competitiveness in the international market. “The decision to install a unit in this area was due to supply and logistics reasons, and for it being close to a harbor, which is essential for those aiming at the foreign market. 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”, explains Susin.
R$ 1 billion investments between 2007 and 2016
With the expansion of the program of investments announced until 2016, Marcopolo will reach the amount of R$ 1 billion invested between 2007 and 2016. That attests the company's focus on constant search for innovation, launching new products, modernization of its plants, raising the standards of competitiveness and productivity, and professional qualifications of their employees.
The company, whose goal is to achieve consolidated net revenues of R$ 6 billion by 2016, increased its revenues from R$ 2.1 billion in 2007 to R$ 3.6 billion (estimated for this year). Production increased from about 18,000 to 32,500 units (estimated for 2012), with the prospect of surpass the 40,000 unit mark by 2016 (all world units).
Marcopolo is one of the largest bus manufacturers in the world, with operations in Brazil, South Africa, Argentina, Australia, China, Colombia, Egypt, India, México, and Russia. The company has over 18,000 employees all over the world, and recorded net revenues of R$ 3.368 billion in 2011, producing 31,526 units.