Fiat completes funding of $ 5 billion for factory in PE

Fiat concluded financing package of about $ 5.3 billion to the project to build its industrial complex in Pernambuco, the largest investment being made by the Italian company in the world. Construction began last September in Goiana.
On Thursday (23), resolution of the supervision of the development of the northeast (Sudene) was published in the Diário Oficial da União, approving resources of up to r $ 1.959 billion for the factories of cars and engines.
The features of Sudene will come through the Northeast Development Fund (FDNE). In addition, Fiat had already obtained credit lines of $ 2.4 billion by the Banco Nacional de Desenvolvimento Econômico e Social (BNDES) and of about 900 million dollars at the Banco de Desenvolvimento do Nordeste (BNB).
The vehicle plant, with a capacity of 250 thousand units, should be ready by the end of 2014, with the start of commercial production in 2015. The complex will also feature tracks vehicle testing and suppliers.
In total, should be consumed resources of $ 4.5 billion, including the motor vehicles and factories. The rest should be used in the ' product development ', Fiat said.
The Fiat car factory in Brazil will be the second of the automaker in Brazil. The company has a manufacturing complex in Betim (MG), Fiat Chrysler Group's largest in the world, which is having its expanded capacity 800 thousand to 950 thousand vehicles per year.
The Italian automaker's investment, the leader in sales of cars and light commercial in Brazil, occurs at a time when the country's vehicle sales go to hit a seventh consecutive record in 2013, to between 3.93 million to 3.97 million units, according to the automakers Association, Anfavea.
The focus on increased capacity also happens in the midst of a new automotive system approved by the Government which requires companies to invest more in production and development in Brazil and the intense competition between traditional brands market and new entrants such as Hyundai.
Last Wednesday (22), the South Korean automaker, which overcame Renault in fifth position in the ranking of participation in car and light commercial sales in the year to the first half of may, according to deploy workers closed a third shift of production at its newly built factory in Piracicaba (SP).