Man Latin America is set to spend around EUR335m (US$462.1m) in the Brazilian state of Rio de Janeiro by 2016, its president told governor Sérgio Cabral Filho as he visited the factory in Resende.

Cortes and Cabral signed an agreement to secure tax incentives and attractive financing rates in order to develop new products and boost capacity at Resende over the next few years.

"Once again, we are partnering with Rio de Janeiro's government for these investments in Resende. We already made major investments between 2008 and 2011. The aim is to increase income in the region, which we have been stimulating since opening our plant back in November 1996," said Cortes.

The event also saw logistics and transportation company JSL and Sindicarga RJ, the union of logistics and road cargo transportation companies in Rio de Janeiro, announce the purchase of 100 trucks each as part of the newly developed programme for renovation, modernisation, and sustainability of fleets in Rio de Janeiro.

Under the programme, at least 30% of fleets in the state are to be renovated in the next five years. This includes 137,000 trucks with an average age of 17 years - more than half of the trucks have already been on the road for two decades. The aim is to reduce the average vehicle age to 12 years by 2018. The government is offering tax incentives to scrap 40,000 trucks, roughly one third of the vehicles registered in the state.