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As part of its ongoing international expansion plans, Japan’s leading diversified materials manufacturer, Nitto Denko Corporation, today announced that it has decided to invest 1400 million Yen (approximately US$17.9 million) in the construction of a new manufacturing plant in Sao Paulo Brazil. With its large population and rapidly developing economy Brazil represents an important market for Nitto Denko in the future.
The Sao Paulo metropolitan area is the second most populous in the Americas and the city itself is Brazil’s largest, with an estimated 20 million people. It is Brazil’s industrial and financial center and has experienced rapid growth and development over the last decade. This along with encouraging growth in the automotive parts business has lead Nitto Denko to consider it a suitable place for production and development.
Nitto Denko has recently established or expanded operations in India, China, Turkey and is determined to continue to be proactive in establishing a presence in new markets to better serve the needs of local customers. The company’s move into Brazil is part of its long term Area Niche Top Strategy, in which top market share is sought in particular niche markets where Nitto Denko can most effectively leverage its unique technologies and regional resources. Nitto Denko America Latina (LTDA) will be the first plant built by Nitto Denko in South America.
The company currently has manufacturing facilities in Mexico and United States from which auto related products were imported into Brazil in the past. But in light of recent regulatory changes instituted by the Brazilian government these imports will cease in favour of locally made products. Nitto Denko understands and appreciates the Brazilian government’s preference to raise the technological content and technology investments in Brazil and welcomes the opportunity to establish local operations.
Construction of the new plant will start in February 2013 and is expected to be completed in December 2013. Initially the plant will manufacture products for the auto related sector such as NVH (Noise, Vibration and Harshness) products.
While auto related products will be the first to be produced in Brazil, Nitto Denko will welcome the opportunity to expand operations in the future and provide a broader range of its vast lineup of products. 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.
Location: Santana do Parnaiba, São Paulo, Brazil (new purchase)
Total initial investment: about 1,400 million yen
Land area: 20,000㎡
Building area: 5,000㎡
Number of employee: 55 (at startup)
Products: Various highly functional products for automotive
Construction start: February 2013
Construction completion: December 2013
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