Japanese industrial equipment maker Yanmar Co said it will invest 280 million reais ($50.42 million) to build a new factory in Brazil as it seeks to boost production capacity and expand market share in Latin America’s largest economy.
The new 140,000 square-meter facility in Indaiatuba, Sao Paulo state, will be three times larger than Yanmar’s existing local plants and is scheduled for phased completion by 2030, the company said in a statement.
Initial production capacity will reach 7,000 tractors annually, up from the current 5,000 units, with the first phase of 36,000 square meters expected to begin operations in 2027. The project is forecast to create approximately 100 direct and indirect jobs by 2029.
Yanmar aims to increase its Brazilian tractor market share to 12% from the current 10% while maintaining its leadership position in mini excavators and expanding into other equipment segments, said Wagner Santaniello, Innovation and Marketing Manager at Yanmar South America.
The facility will feature automated assembly lines, improved logistics systems, and sustainability measures including solar energy and natural lighting systems, aligning with the company’s global environmental objectives.
The new plant will consolidate manufacturing operations with administrative and commercial offices to improve operational efficiency. It will also implement Yanmar’s production system based on manufacturing practices developed in Japan.
Japan-based Yanmar, founded in 1912, pioneered compact diesel engine technology and has operated in Brazil for over 65 years. The company currently employs more than 300 people at its Indaiatuba site.
The investment highlights continued Japanese corporate interest in Brazil’s agricultural machinery market, which serves one of the world’s largest farming sectors.
Business News Asia
