BEML to invest in assembling plant in Brazil

New Delhi, Sept 18: Bharat Earth Movers Ltd (BEML) today said it will invest Rs 100 crore in a 60:40 joint venture with Brazil-based Compagnie Comercio E Construcoes, (CCC) for manufacturing and supplying rail wagons and bogies, mining and construction equipment and spares.

The company has taken over a factory on the outskirts of Rio-de-Janeiro city, Brazil with facilities and adequate infrastructure, to take up manufacturing equipment in the near future with a capacity of rolling out 500 wagons and over 200 earthmoving equipments and spares annually.

''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, this joint venture shall help the company penetrate info new market overseas,'' a statement said.

This step is also expected to help the company to consolidate its leadership position in construction and mining machines and railway products in the mineral-rich territory of Brazil, which is the largest country in South America and is poised for a big impetus in development of rail and road logistics in the Latin American region.

The MoU to this effect was recently signed by the visiting company's Chairman and Managing Director V R S Natarajan with CCC Proprietor Darci Rodrigues in the presence of Prime Minister Manmohan Singh and Brazilian President Luiz Inacio Lula Da Silva.

UNI