It’s been a little more than a year since Manitowoc opened its first Latin American factory in Passo Fundo, Brazil, and the company is celebrating a successful launch. The first cranes assembled at the factory were delivered in June 2012, and since then, production hasn’t slowed for a second. Latin American customers are purchasing cranes built at the factory as quickly as Manitowoc can make them.
If there’s been one overriding theme for the Passo Fundo facility it’s “quality.” Several Latin American companies visited the factory in its opening year and discovered that the cranes produced match the same quality standards that Manitowoc sets around the world. Manitowoc is proud to say that the Grove cranes it builds in Brazil are identical in quality to those made in Shady Grove, PA.
Since its inception, Passo Fundo has further engrained itself in the Brazilian market, increasing the amount of components it buys directly from Brazilian companies. Using local suppliers helps keep costs low with quick turnaround time for customers. The new local components are heavily scrutinized at Manitowoc’s Product Verification Center in Shady Grove to ensure the highest level of performance, similar to the components used in our U.S., Europe and Asia operations.
“The entire South America market has responded very well to our Passo Fundo operations,” says Mauro Nunes, General Manager of Operations for Manitowoc in Brazil. “When companies see our factory, the installations and the quality of the cranes we produce here, they immediately compare the products with U.S.-made machines.”
And if Manitowoc’s opening of the $75-million dollar Passo Fundo factory wasn’t already a reflection of its commitment to Latin America, the company has continually invested in improvements to the factory over the last year. Considerable upgrades, such as new machining and painting systems, have been installed at the factory, improving product quality and keeping production costs low. Enterprise resource planning was also implemented this year, increasing the factory’s efficiency and lowering costs for customers.
Passo Fundo began its EnCORE operations in the summer of 2012, restoring a 220 t (250 USt) capacity GMK6250L all-terrain crane that was badly damaged by sea water. The refurbishment cost the customer 40% less than purchasing a new crane. Manitowoc customers are also experiencing quality Crane Care service and support from a location much closer to the actual job site than ever before. Parts are well stocked, delivery time is quick and Crane Care experts are always available for support.
“Our customers in Brazil have been very pleased with our commitment to the market through Manitowoc Crane Care service and EnCORE,” says Nunes. “Through Passo Fundo, we are able to ensure fast delivery times, expert advice and meticulous maintenance at a location that’s in close proximity to our customers’ job sites.”
Passo Fundo has proven to be such a success that Manitowoc has increased the number of models it produces there, with plans for more in the future. While the factory began by producing the 60 t (65 USt) capacity RT765E-2, the 75 t (80 USt) RT880E and the 80 t (90 USt) RT890E rough-terrain cranes, it later added the 30 t (30 USt) RT530E-2 and the 35 t (40 USt) RT540E rough-terrain cranes to production. In 2014, Potain will also begin producing tower crane mast sections in Passo Fundo.
Manitowoc Finance is also increasing its activities in Brazil through Passo Fundo. The cranes being assembled at the factory are now eligible for BNDES (Brazilian Development Bank) financing, which is available from the Brazilian government. Also, financing is available through BNDES’s FINAME (Financiamento de Máquinas e Equipamentos) program, which grants low interest rates to companies looking to purchase Brazilian products. These operations will offer services much like DLL (De Lage Landen), the bank that finances Manitowoc purchases in North America and Europe.
“The first year at Passo Fundo has been a great success,” says Nunes. “We are producing top-notch cranes, continually improving the factory and its operation, ingratiating ourselves in the Brazilian market and increasing the variety of models we produce. And now all of these products are available for financing through local banks. We are confident that we can satisfy any Latin American customer’s needs through our operations at Passo Fundo.”
