Feiplastic 2013: Sumitomo (SHI) Demag expands Brazilian presence with move into gear box site

05/29/2013

São Paulo—Japanese conglomerate Sumitomo's decision to construct a new 20,000-sq-m gear box plant in Brazil will now benefit its injection molding business, which will also move into the new site, expanding its inventory, after sales business, training, showroom, and more.

Frank Schuster, general sales manager, Sumitomo (SHI) Demag said the new gear box plant, which is about 100 km north of São Paulo in Itu and completed in November 2011, would give the company space to build injection machines locally, if that's determined to be the best move from a business perspective.

Sumitomo's gear box unit decided that Brazil's import duty and tax structure were unnecessarily restricting a business that could be growing and pushed it to invest $83 million in a 447,000-sq-m plot and a 20,000 sq m building in country that could avoid import penalties. At this time, Sumitomo (SHI) Demag remains competitive in the molding machine market it serves, despite the taxes and tariffs....
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