Italy's GSI Group opening 3 plants in Brazil

By Bob Moser
Correspondent

Published: August 1, 2014 9:18 am ET
Updated: August 1, 2014 9:22 am ET

Image By: Global Systems International SpA Italy's Global Systems International SpA invested BRL35 million ($15.5 million) over the past year in three new production plants in Brazil.

Related to this story

Topics Automotive, Agricultural, Automotive parts

SÃO PAULO — Italy’s Global Systems International SpA, a producer of assembled plastic parts for machinery and vehicle manufacturers, has invested BRL35 million ($15.5 million) over the past year in three new production plants in Brazil, with all opening in September to serve growing demand in Brazil and Argentina, the company’s commercial manager told Plastics News.

GSI, which has operations in England, Germany, China and the United States, entered the Brazilian market in 2012 with a commercial office. The company closed a deal last year with Deere & Co. to produce external shields for its Andromeda line of agricultural machinery, prompting GSI to build three Brazilian plants in 12 months.

“We’re betting on Brazil because we see very important growth here in demand for heavy machinery, especially in the agribusiness market,” said Anderson Proença in a recent interview. “The technology with which we work doesn’t have many competitors here, so GSI sees this as a major growth opportunity.”

The company’s main plant in Sete Lagoas will have a 4,000-ton press for sheet molding compound parts, which Proença said is the largest machine of its kind in Latin America. The other two plants, in Curitiba and Horizontina, will focus on paint and assembly.

The three plants feature a combined 50,000 square feet of operating space. Production capacity will total 1,000 tons per year, with scheduled expansion to 2,000 tons by 2016.

The company expects its local production to supply Brazil and Argentina initially, with plans to add a plant in Argentina as soon as 2016. The company is considering two more plants in Brazil, Proença said.

GSI projects 2015 sales of BRL20 million ($8.9 million), rising to BRL34 million ($15.1 million) in 2016.

Of the BRL35 million ($15.5 million) invested, part was from the GSI parent company in Italy and part from Brazilian private investors, which Proença declined to name. Another BRL5 million ($2.2 million) will be invested in the plants over the next 12 months.

GSI Group produces a variety of transformed plastics auto parts for clients worldwide like Case IH, New Holland and Deere in agricultural machinery, as well as automotive and truck manufacturers including Volkswagen, Audi and BMW.


Comments

Italy's GSI Group opening 3 plants in Brazil

By Bob Moser
Correspondent

Published: August 1, 2014 9:18 am ET
Updated: August 1, 2014 9:22 am ET

Post Your Comments


Back to story


More stories

Image

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

Jagemann expands to meet rising demand from auto industry

February 18, 2015 2:50 pm ET

Jagemann Precision Plastics is expanding its Murfreesboro, Tenn., plant to meet rising demand for insert-molded parts.    More

Image

Plastics firms honored for work in product development, manufacturing

February 17, 2015 4:09 pm ET

Sealpac USA LLC, Dow Chemical Co.'s automotive systems group, Piper Plastics Inc. and Igus Inc. were honored for their efforts in the development new ...    More

Image

TransNav, Rompa Group form JV covering Europe, North America

February 17, 2015 5:28 pm ET

TransNav Inc, of New Baltimore, Mich., and the Tilburg, Netherlands-based Rompa Group have established an injection molding and thermoforming joint...    More

Image

Chinese compounders raising stakes in U.S.

February 16, 2015 11:02 am ET

China's largest compounder has just set up a foothold in the U.S., on the heels of the news of another leading industry player entering the U.S. marke...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events