With revenues of over USD 6.0 billion and 27,000 employees, this manufacturer of heavy construction machinery is one of the top-10 players globally. In its two main business segments, concrete machinery and hoisting machinery, the company is both rank second worldwide.
- Infrastructure investments have been rapidly developing in Brazil, representing an attractive market for a heavy machinery manufacturer. Many of the client's competitors had already localized their production in Brazil.
- Consequently there was an urgency to define an entry strategy and identify the best option for a greenfield assembly site location.
- Objective of this initiative was to identify possible sites for a factory location and support negotiation and the finalization of a letter of intent.
- We provided a high-level market and competition analysis in order to understand key drivers for the decision of where to locate the clients production facility.
- A decision model was developed, considering aspects like logistics, infrastructure, tax, government incentives, ease-of-doing-business and labor availability.
- On the basis of this model we simulated and compared the advantages of different states, cities and specific terrains.
- Initially, based on the decision model, a ranking of states and a recommendation of two states as the final candidates have been provided.
- In a second step, relevant cities (long-list) had been identified and 15 cities short-listed based on results from a comprehensive simulation of criteria.
- In all these short-listed cities, terrain options were selected for technical site visits.
- Finally, visits of prioritized terrain options with client executives were carried out and recommendations of four specific terrains (plus three contingencies) made.