BEML inks JV with Brazil firm
State-owned Bharat Earth Movers Limited (BEML) has signed a memorandum of understanding (MoU) with Compagnie Comercio E Construcoes (CCC) in Brazil for establishing a joint venture company for manufacture and supply of rail wagons, mining and construction equipment and spares. BEML will hold 60 per cent in this venture.
According to a statement from BEML, it has committed an investment of Rs 100 crore to acquire a factory on the outskirts of Rio-de-Janerio in Brazil. The factory has infrastructure to roll out 500 wagons, 200 earthmoving equipment and spares annually, in the near future.
"Given the growing demand in the Brazilian market as well as other South American countries in terms of expansion of mines and offtake of wagons, the joint venture shall help BEML penetrate into new markets," the statement added.
The step will also help BEML to consolidate its position in the construction, mining machines and railway products in the mineral-rich territory of Brazil.
The MoU was signed by BEML CMD V R S Natarajan with CCC proprietor Darci Rodrigues in Brasilia recently, the company added.
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