General Motors Mercosur has begun expanding its Sao Caetano do Sul Industrial Complex in the Greater Sao Paulo area at a cost of BRL1.2bn/US$370m.
The amount is part of the company's biggest investment ever in its long history in Brazil, from a total of BRL13bn/$4bn to be spent between 2014 and 2020.
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At a time of overall Brazilian industry excess capacity (around 45%), it is a daring move indeed.
The plant has just started holidays for all workers for 30 days so the building can be fitted with transparent roof, LED lighting with automatic dimming and natural ventilation, along with other 'sustainable building' measures.
All facilities will be refurbished and will include new, 4.0 manufacturing technology. The built area will be 432,300 square metres.
This already is one of the more versatile and flexible GM plants worldwide. From the same assembly line come several models including the Cobalt saloon, Onix hatchback, Spin minivan (a new generation is due next May) and the Montana compact pickup truck.
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By GlobalDataThe site also houses GM's Mercosul head office.
Last February the automaker opened the expanded engine plant in Joinville, in the southern state of Santa Catarina (home to the BMW assembly plant in Araquari).
These facilities have quadrupled after a spend of BRL1.9bn/$600m. The new, 46,800 square metre factory houses six new lines: two for engine block machining, two for cylinder heads, a cylinder head sub assembly line, plus another for engine assembly.
Capacity increased to 420,000 engines from 120,000. A new engine family and the first three-cylinder Chevrolet engine for Brazil, based on Opel's I3 design, will be made there by the end of this year.
