The Grammer Group said it had substantially increased its overall production capacity in Brazil and established additional capacity to make headrests for locally made passenger cars.

Floor space at the plant in Atibaia, near Sao Paulo, which also assembles driver and passenger seats for trucks and agricultural machinery, has been extended by one third to 15,000sq m.

Grammer now will produce passenger car interior components for the first time in Brazil.

“This investment simultaneously increases the group’s local value chain in Brazil, allowing it to offer its customers the benefits of an integrated value chain based on lean production,” the supplier said in a statement.

Headcount at the plant has risen by 100 to almost 700.

“The plant expansion in Brazil gives Grammer an excellent basis for participating in the strong increase in demand for passenger and commercial vehicles in South America,” the statement added.

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