Nitto Denko Corporation has confirmed plans to invest US$17.9m in the construction of a new manufacturing plant in Sao Paulo, Brazil.
The investment in Brazil is part of the company’s ‘Area Niche Top Strategy’, through which a leading market share is sought in particular niche markets where Nitto Denko believes it can most effectively leverage its technologies and regional resources.
Nitto Denko America Latina (LTDA) will be the first plant built by Nitto Denko in South America.
Osaka, Japan-based Nitto Denko has recently established or expanded operations in India, China, Turkey as it seeks to be proactive in establishing a presence in new markets to better serve the needs of local customers.
Nitto Denko currently has manufacturing facilities in Mexico and the US, from which auto related products were imported into Brazil in the past. However the company has noted that in light of recent regulatory changes instituted by the Brazilian government these imports will cease in favour of locally made products.
Construction of the new plant at Santana do Parnaiba, will start in February 2013 and is expected to be completed in December 2013. Initially the plant will manufacture products for the automotive-related sector such as NVH (Noise, Vibration and Harshness) products, employing around 55 workers.
The company has noted that, given Brazil’s growth prospects, there is a good chance that the Sao Paulo plant will become the company’s main production base in South America in the future.
