Jaguar Land Rover to build plant in Brazil, the first British car maker to do so.

• Agreement signed with the State of Rio de Janeiro to build a Jaguar Land Rover manufacturing facility
• Jaguar Land Rover will invest R$750m (£240m) in the programme
• Plant will have an annual production capacity of 24,000 vehicles
• Plant will initially employ 400 people, generating additional jobs in the supply chain
• First vehicles to come off the assembly line in 2016

Jaguar Land Rover is to become the first British carmaker to open a manufacturing facility in Brazil following a landmark agreement between the company and state authorities to build a plant in the State of Rio de Janeiro.

An agreement paving the way for construction of the plant has been signed by Phil Hodgkinson, Global Business Expansion Director of Jaguar Land Rover, and Sergio Cabral, State Governor of Rio de Janeiro.

Jaguar Land Rover’s planned expansion into Brazil is the next major step in the company’s strategy to increase its global manufacturing footprint and create additional capacity. This new facility will play an important role in supporting the significant growth opportunity identified in Brazil and across other South American markets.

Dr Ralf Speth, CEO of Jaguar Land Rover, said: “Brazil and the surrounding regions are very important. Customers there have an increasing appetite for highly capable premium products.

“This new programme will enable us to bring exciting new vehicles to them, with outstanding British design and engineering, creating a world-class Jaguar Land Rover facility incorporating leading premium manufacturing technologies.

“We have established excellent working relationships with the State of Rio de Janeiro, the City of Itatiaia & the Rio de Janeiro State Industrial Development Company and we look forward to attracting new customers to our business in this important market.”

Based in the City of Itatiaia, the new programme represents a total investment of R$750m (£240m) by 2020.

Construction of the premium manufacturing facility will commence in mid-2014. It is anticipated that the first vehicles will come off the assembly line in 2016, subject to the final approval of the plans from the Brazilian Federal Government under its Inovar-auto Programme. The new plant will have a capacity to build 24,000 vehicles annually for the Brazilian market.

Initially, the plant will employ almost 400 people. This number is expected to almost double by the end of the decade. This new manufacturing facility will also create additional jobs across the local supply chain network.

Following a detailed feasibility study, Jaguar Land Rover selected the City of Itatiaia, close to the heart of the emerging Regional Automotive Zone, due to its excellent logistics links, access to the local supplier base and skilled workforce.

Sergio Cabral, Governor of Rio de Janeiro State commented: "The choice of Rio de Janeiro to host the Jaguar Land Rover’s new facility is another historic achievement for our state. We offer perfect conditions to JLR to install its plant in Brazil, as we have an automotive hub in the South Fluminense region that concentrates qualified labour and important suppliers.

It is a privilege to welcome this great group, with an estimated investment of up to R$750 million and we are confident that this agreement will bring to Brazil extraordinary results."

Jaguar Land Rover in Brazil

Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Its national sales company is based in Sao Paulo, employing almost 100 people. There are currently 35 dealers across Brazil with further expansion planned in the next year.

So far in 2013, Jaguar Land Rover sales in Brazil have increased by more than 40% to 9,549 vehicles over the 10 month period. The best-selling models in Brazil are Range Rover Evoque, Freelander and Discovery.

Jaguar Land Rover to build plant in Brazil ?

Jaguar Land Rover will invest about 1 billion reais ($436.9 million) to build a new manufacturing plant in Brazil's state of Rio de Janeiro, three government sources told Reuters.

Production at the factory, to be built in the city of Itatiaia, could begin as early as 2015, and an official announcement is scheduled for Dec. 3, said one of the sources, who is not authorized to speak on the record.

"Everything is very advanced with only minor details to be worked out," said Luiz Carlos Ferreira Bastos, Itatiaia's mayor. The factory could employ 500 to 700 people, he added.

The two other government sources, both with Rio de Janeiro's state government, confirmed that Land Rover plans to build in Itatiaia, although they declined to be named because they are not authorized to speak to the media.

Earlier this month, Jaguar Land Rover, owned by India's Tata Motors, said it plans to expand manufacturing and increase production in markets outside its UK home base, particularly in China and Brazil.

The decision comes after rival brands BMW, Mercedes-Benz and Audi all decided to build plants in Brazil, spurred by government moves to raise taxes on imported vehicles, while offering tax breaks for automakers that increase domestic investments.

"Jaguar Land Rover confirms that it is carrying out a study on the installation of a manufacturing unit in the country," a company representative told Reuters on Monday. "At this time, we can not confirm the size of the investment or other details of the study."

Negotiations started at the beginning of this year, one of the sources said, with Rio de Janeiro's state government offering tax breaks and fiscal incentives to help attract the company.

From January through October, Land Rover sold 8,920 automobiles in Brazil, trailing BMW and Mercedes-Benz, which sold 11,520 and 10,510 cars, respectively, according to local auto dealers association Fenabrave.

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JLR invests heavily in new plant for Castle Bromwich site.

VEHICLE manufacturer Jaguar Land Rover is gearing up for a major increase in production at its Castle Bromwich plant after a massive new order for plant infrastructure.

The plant, which manufactures Jaguar cars, is already scaling up production where in addition to the XK, XF and XJ models it also now produces the two-seater F-Type sports car.

The company has also announced it is to increase volumes significantly by producing a new small sports saloon, although this will be made at the nearby Lode Lane plant in Solihull where £1.5bn is being invested in new production facilities.

To facilitate growth at Castle Bromwich, the Indian-owned business has placed an order for five massive new overhead cranes for its press shop.

Materials Handling World said the company had placed an order for five Konecranes for the factory. The cranes are all from Konecranes UK's Smarton SMT range and will operate on average spans of 27 to 29 metres.

Two of the cranes are 60 tonnes - one of which is to be a 60/30 tonne with two trolleys where both hooks are equipped with motorised rotation. In another bay, and operating with similar features to the two 60t cranes, will be two 32 tonne heavy duty cranes. The fifth crane will be a 30 tonne model.

The magazine said the contract also specified the dismantling and relocation of an existing 50 tonne Konecrane. The new cranes will all be delivered from Konecranes UK's manufacturing facility in East Kilbride during March 2014.

The contract is a further indication of JLR’s long-term plans for the future of the Castle Bromwich plant.

The company has already bought up a multiplex cinema on a site next to the factory n order to cater for expansion, while it is also in talks to acquire the nearby Dunlop Motorsport factory to provide further space.

It is thought the company will also unveil a coupe version of the F-Type at the Los Angeles next month, although it has yet to confirm whether a 4x4 concept crossover Jaguar, which was displayed at the Frankfurt Motor Show, will be put into production.  

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Nissan Sunderland Expands to assemble new Infiniti Model

• Groundbreaking ceremony takes place at Sunderland Plant
• Infiniti’s global expansion gathering momentum
• Major £250m investment will create 1,000 jobs

Construction of the first Infiniti production facilities in Europe begins today in Sunderland, UK.

Part of an overall £250m investment in the UK, a groundbreaking ceremony was performed today by Executive Vice President Trevor Mann, and Fintan Knight, Vice President for Infiniti Europe, Middle East and Africa.

Mann said: “Securing the Infiniti Q30 for production at Sunderland was a tremendous achievement by the workforce and reflects the quality levels which they have reached. The existing Sunderland plant is already the largest in UK automotive history and this £250m investment will move the plant even further up the value chain and reconfirm our commitment to their future.”

Knight said whilst addressing visiting dignitaries, UK suppliers and plant staff at the ceremony: “This is a significant step for the Infiniti brand as we establish manufacturing here. The design centre in Paddington, the Technical Centre in Cranfield and the ongoing partnership with the Infiniti Red Bull Racing team in Milton Keynes testify to our strong link with the UK. Our investment here amplifies the brand’s presence in Europe, one of the key markets for Infiniti, but provides clear intent as we gear up for sales of the compact premium Q30 in 2015.  Infiniti is committed to growing its product offering over the coming years as we challenge the traditional premium offerings.”

Trevor Mann and Fintan Knight performed the groundbreaking ceremony with the aid of a specialist digger provided by construction partner Sir Robert McAlpine, indicative of a relationship which dates back to the establishment of the Sunderland Plant in 1984.

The new facilities, for the Q30 body assembly (Body Shop) and final assembly (Trim and Chassis),will cover 25,000m2 of new production space, with construction and facility installation due to be completed in time for the Q30 launch in 2015. The new Body Shop facilities will enable assembly of the Q30’s premium platform, while the Trim and Chassis extension will include a new engine installation facility.

Infiniti will become the first new car brand to be manufactured in the UK on this scale for 23 years.  The expansion is set to create 1,000 jobs at Sunderland and in its UK suppliers, including 280 new jobs at the Sunderland Plant, with the company’s Design Centre in Paddington and Technical Centre in Cranfield also involved in the Q30’s development.