Volvo Penta has started production of industrial engines in Brazil. The models manufactured there are the 13 L TAD-1344GE and TAD-1345GE engines for power generation.
“The nationalization of industrial engines is part of our growth strategy in South America,” said Gabriel Barsalini, Volvo Penta South America’s president. “We are leaders in the leisure maritime industry in Brazil and we want to expand our presence to the industrial segment for power generation. It is a market with huge potential.”
The company said that one of the advantages of the domestic production is the ability to include products in the Brazilian FINAME finance program.
“One of Volvo Penta’s ambitions is to create a supply global chain for our products with competitive delivery time in a competitive cost, too,” said Ron Huibers, president, Volvo Penta of the Americas. “The industrial production in Brazil is a benefit that we offer to our clients in South America.”
Brazil’s Ministry of Energy and Mines has said that the current energy deficit is 50 TWh. This situation, the Volvo Penta said, is expected to open the door for gen-sets.
The engine company will meet the demand through three Volvo Construction Equipment distributors — Tracbel, Link and Entreposto — which cover 70% of the country.
Volvo Penta in South America also wants to expand its business in Ecuador, Bolivia and Paraguay. “These are markets with great potential, for maritime and industrial engines, but where our presence is very shy,” said Barsalini. Besides Brazil, the main markets for Volvo in South America are Argentina, Peru and Chile.
The TAD-1344GE and TAD-1345GE engines are produced at the same plant in Curitiba city, Paraná state, where Volvo manufacturers trucks and bus engines. The facility went through some changes to receive an extra assembly line.