As part of its ongoing international expansion plans, Japan’s leading diversified materials
manufacturer, Nitto Denko Corporation, today announced that it has decided to invest 1400 million Yen
(approximately US$17.9 million) in the construction of a new manufacturing plant in Sao Paulo Brazil.
With its large population and rapidly developing economy Brazil represents an important market for
Nitto Denko in the future.
The Sao Paulo metropolitan area is the second most populous in the Americas and the city itself is
Brazil’s largest, with an estimated 20 million people. It is Brazil’s industrial and financial center
and has experienced rapid growth and development over the last decade. This along with encouraging
growth in the automotive parts business has lead Nitto Denko to consider it a suitable place for
production and development.
Nitto Denko has recently established or expanded operations in India, China, Turkey and is determined
to continue to be proactive in establishing a presence in new markets to better serve the needs of
local customers. The company’s move into Brazil is part of its long term Area Niche Top Strategy, in
which top market share is sought in particular niche markets where Nitto Denko can most effectively
leverage its unique technologies and regional resources. Nitto Denko America Latina (LTDA) will be the
first plant built by Nitto Denko in South America.
The company currently has manufacturing facilities in Mexico and United States from which auto related
products were imported into Brazil in the past. But in light of recent regulatory changes instituted
by the Brazilian government these imports will cease in favour of locally made products. Nitto Denko
understands and appreciates the Brazilian government’s preference to raise the technological content
and technology investments in Brazil and welcomes the opportunity to establish local operations.
Construction of the new plant will start in February 2013 and is expected to be completed in December
2013. Initially the plant will manufacture products for the auto related sector such as NVH (Noise,
Vibration and Harshness) products.
While auto related products will be the first to be produced in Brazil, Nitto Denko will welcome the
opportunity to expand operations in the future and provide a broader range of its vast lineup of
products. Given Brazil’s growth prospects there is a good chance that the Sao Paulo plant will become
the company’s main production base in South America in the future.
