LS Mtron completes construction of its Brazilian tractor plant, can now make inroads into the Central and South American markets in earnest.
■ This state-of-the-art plan can manufacture 5,000 30~100hp tractors a year.
■ This is the 3rd tractor plant of LS Mtron following the first and second plants built in Korea and China respectively. This tractor plant reinforces LS Mtron’s global tractor production network.
■ CEO J.S. Shim says, “We will accomplish KRW1 trillion in tractor sales to become a global top 5 tractor manufacturer in 2015 by aggressively targeting global markets.”
LS Mtron has recently completed constructed of a major tractor plant in Brazil following the ones it built in Korea and China, and declared a new leap forward as a global maker. On October 13, LS Mtron announced that it had built a state-of-the-art tractor plant, capable of manufacturing 5,000 tractors a year in Garuba, Santa Catarina, which lies at the heart of Brazil’s agricultural area.
This plant has an office building, a factory and a proving ground on an 80,000㎡ lot with its main products being 30~100hp tractors. As the tractors manufactured here will be supplied to neighboring countries as well as Brazil, the construction of this plant means the construction of an advance base to serve the South American markets.
"It’s been only a short while since we entered the Brazilian market, but our products are attracting attention on account of outstanding quality and design," said an LS Mtron representative. "Our sales will amount to KRW30 billion this year." LS Mtron plans to become a top-tier brand by accomplishing KRW150 billion in sales and gaining 15% of the Brazilian market for tractors smaller than 100hp by 2016.
The size of the Brazilian market is 70,000 tractors a year ranking it one of the top 5 tractor markets in the world along with India, China, Europe and the US, and growing 25~30% every year. Demand for grain is increasing and the government is expanding support for farmers, so the economy is growing very fast. The market is very attractive, but as Brazil provides low-interest loans only to farmers purchasing products made in Brazil, the entry barrier is very high.
Local manufacturers account for 95% of the market, so for tractor makers to be successful in Brazil, they must build factories there.
Tractor sales of LS Mtron more than doubled from KRW159.3 billion in 2008 to KRW347.2 billion in 2012, and t...