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Renault : Renault is set to invest US$ 120 million in the construction of a new engine plant in Brazil Paris, April 28, 1999 -- Today in Curitiba, Luc-Alexandre Ménard, President of Renault do Brasil SA and Renault's Senior Vice President for the Mercosur region, along with Jaime Lerner, Parana State Governor, will lay the foundation stone for Renault's new engine plant, set to come on stream at the beginning of 2000. This plant, with an annual production capacity of 280,000 units, will be a close neighbour of the Ayrton Senna body assembly plant. It will initially produce
The total investment amounts to US$120 million, with the plant creating 400 new jobs. The level of local content will reach 80% by 2001. This new Renault engine plant, covering a total surface area of 15,000m2, will be built alongside the Ayrton Senna assembly plant in Curitiba, opened last December. It is to be managed by Gilles Levassor, Renault's current Powertrain Director for the Mercosur. Coming on stream at the start of 2000, it will initially produce the K and D-series engines (1.6 and 1 litre respectively), which account for 80% of the engine needs of Renault's Mercosur plants. From a level of 57,000 units in 2000, production will increase progressively up to 280,000 units by 2002. If required, the plant's output capacity will be capable of being boosted to 400,000 units annually. At least 50% of production will be exported throughout Latin America. Renault's manufacturing structure in the Mercosur is focused on three assembly points : the Ayrton Senna plant (Curitiba, Brazil), the Santa Isabel plant (Cordoba, Argentina) and the Nordex plant (Montivideo, Uruguay). The new engine plant at Curitiba will boost the flexibility, independence and overall integration of this structure. It will thereby enhance the responsiveness of the manufacturing side to growth in demand from the sales network. In addition, it will smooth Renault's access into new markets in the region, while simultaneously reaffirming the company's expertise in the area of engine manufacture.
60 suppliers will be working in close partnership with Renault to satisfy the plant's requirements. These suppliers include :
The setting up of the assembly line, developed by Comau, will start at the beginning of August 1999, with the first engine units due off the line at the start of 2000. Test benches are being supplied by Apicom. The two engine production lines will be installed during the course of 2000, with production due to start in 2001. Cylinder heads, crankcases and crankshafts, three components scheduled to be produced in Curitiba at a later date, will be supplied at start-up by Renault's plants in Spain and France.
The Curitiba engine plant will begin by producing those units which are best suited to the Brazilian and Argentine markets :
These engines are destined to stand out by virtue of their innovative characteristics, combining power and light weight with a low level of fuel consumption, thereby enhancing the vehicle's overall performance. A reduced level of emissions means they will also comply with Brazil's current standards. Innovation is also inherent in the very design of the plant itself. Specifically developed production lines make it possible to assemble engines adapted to driving conditions encountered in Latin America (temperature, dust, humidity, altitude), and capable of using Brazilian fuel, a mixture of alcohol and petrol. The manufacturing system has a high degree of flexibility, both in terms of engine type as well as the volume of engines assembled, which will enable the plant to respond as quickly as possible to technical developments as well as to customer demand.
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