Terex considers aerial platform production in Brazil

Terex Corp is considering the production of Genie self-propelled aerial work platforms and telehandlers at its new Brazilian plant, and could start production in 2012.

The Terex facility, being built in the coastal town of Guaíba in southern Brazil, is primarily intended for the roadbuilding equipment division, with machines expected to be in production by the end of this year.

However, Andre Freire, president of Terex Latin America, told Access International that the local production of booms and telehandlers would provide a big benefit for the company. He said the aim would be to get to 60% local content, a percentage that is crucial because it the threshold at which machines qualify as ‘made in Brazil' and attract subsidised government investment finance.

Another benefit is that once a machine is produced locally, imported models automatically attract a much higher import tax. Mr Freire said import taxes for suppliers not manufacturing in Brazil jump from 2-3% to nearer 18%.

"For the first manufacturer to move, there is a financial advantage and competitors get more expensive the next day", said Mr Freire. "I've been pushing for a factory here for many years. Now there is enough volume."

JLG Industries is also considering AWP production in Brazil. Last August, the company's president, Wilson Jones, told Access International that he expected to have some form of local production in Brazil within 18 months; "The question is whether we do it on our own or with a partner. That's what we are studying right now."

Brazil is attracting enormous interest from aerial platform suppliers because of the booming construction market and the heavy investments in equipment being made by rental companies including Mills and Solaris.