Mitsubishi Electric establishes new company in Brazil for sales of factory automation products
Mitsubishi Electric Corp has established a new company in São Paulo, Brazil to strengthen its computerized numerical controller (CNC) business in the Brazilian market. The new company, MELCO CNC do Brasil Comércio e Serviços S.A., will target annual sales of USD 25 million by March 2016.
In July 2012, in order to quickly position itself to meet rapidly growing demand in the Brazilian market, Mitsubishi Electric signed a business transfer agreement to purchase the CNC sales and service division of Automotion Industria, Comércio Importacao e Exportacao Ltda, a local sales and service agency with high technical capabilities that has provided Mitsubishi Electric CNCs and factory automation products and components to Brazilian machine tool manufacturers for the past 20 years.
The newly established company will expand local sales and service capabilities by increasing personnel, including Japanese staff from Mitsubishi Electric, further enhancing Mitsubishi Electric’s ability to provide local servicing for the rapidly increasing number of machine tools imported from countries such as Japan and Taiwan. MELCO CNC do Brasil Comércio e Serviços also intends to establish regional offices in southern and northeastern Brazil, regions that are expected to enjoy high economic growth following São Paulo State.
The Brazilian market is now anticipating continuous growth, backed by rich mineral and food resources, as well as the privatization of state-owned corporations in the steel, mining, electrical power, and finance industries. In addition, the market growth is attracting manufacturers, including automobile makers from Japan and other countries. The hosting of several major international sporting events within the next few years is also expected to stimulate local capital investment for related facilities, further expanding the machine tool market.