São Paulo – The Brazilian Development Bank (BNDES, in the Portuguese acronym) announced this Friday that a R$ 2.4 billion (US$ 1.17 billion) loan has been approved for Fiat to build a new plant in Brazil. The unit will be located in Goiana, in the northeastern Brazilian state of Pernambuco.
According to the bank, the factory will have an annual output capacity of 250,000 vehicles. The project also includes an engine manufacturing unit and testing grounds, among other facilities.
According to the BNDES, 4,500 direct and 12,000 indirect jobs are expected to be created. Operations are scheduled to begin in the first half of 2015. The plant will make new Fiat models for both the domestic and foreign markets.
Works are already underway and the total investment forecast is R$ 4 billion, according to the project’s website. Fiat Brazil is headquartered in Betim, in the state of Minas Gerais, with a plant capable of producing 800,000 vehicles a year.
*Translated by Gabriel Pomerancblum
