After several formal video conferences with the State Government of Minas Gerais, and a formal invitation from Sete Lagoas Mayor Marcio Reinaldo, Amsia Motors was invited to conclude and sign a formal agreement for an automotive plant. On Dec. 18th, 2015, not only a car assembly plant but an Agro, power generators, and electronics plant have been signed for investments of over one billion US dollars. Amsia Motors Americas, LLC, an American company whose main Automotive Corporate Head office is located in Shenzhen, China, now confirms its strong commitment in executing this substantial project in the Brazilian market. The project has been in the works since Dec. 2015 with the State Government of Minas Gerais which confirmed their intention to build two factories; one in the City of SeteLagoas and another in Monte Alegre.
The company intends to assemble advanced innovative hybrid cars in Minas Gerais with enhanced engines on ethanol, gasoline, liquid natural gas, and bio-diesel. In an interview with Valor, Mr. Moeth Ahmed, the Global Sales and Marketing Director of the American Company who is in charge of the Brazilian venture, says the goal is also to install a research and development department in the country later to work towards the next step in electric car technology.
“We’re planning new and different technologies,” the executive says. One technology could be an alternative to the currently expensive lithium batteries being tested for cars throughout the world. “The focus is on offering environmentally friendly vehicles,” he said while avoiding disclosing further details.
Amsia Motors is a 100% independent organization founded in 1986, an OEM joint venture automotive manufacturer that is now successfully ready to launch its own brand under the name “Amsia Motors”. Mr. Ahmed, the Global Sales Director, says it has joint ventures with the largest Chinese carmakers such asDongFeng Motors, JinBei, which is partly owned by Auto Brilliance, and with Zhongtong Bus. The company operates in an independent capacity, developing innovative and efficient products, and collaborating with nine global technical partners such as AEC, MAN and Canada’s Cummins of Westport to name a few.
Amsia OEM JV Partners runs an effective supply channel to market the vehicles. The Middle East, Asia, Africa, and a few South American countries are its main markets. Amsia is now betting on launching its own vehicle brand. Mr. Ahmed, who interviewed with Valor Economica newspaper in São Paulo, says that Brazil is a strategic market reach for Amsia and a potential export platform apart from the local region. “Brazil is a large market which experienced a strong economic challenge due to various aspects in several sectors recently, but it’s a resilient market for us, and very strategic,” the 43-year old executive, a Canadian citizen, says.
Amsia commenced its local start-up operations by registering the company in Brazil. A local (camp) office has been appointed to carry out its mandates, and the plan is to extend gradually from the import market to the production line and expand into other South American and Latin American countries.
The company could have picked China to begin producing its own vehicles, a move which certainly would be cost effective and offer greater sales potential. Unfortunately, there would be conflicts of interest. “We already are in the Chinese market with our partners through joint venture partnerships. The idea is to launch our brand independently and where we require a potential growth and a strategic reach into the future under such an investment,” Mr. Ahmed says.
Amsia Motors followed the departure of the Minas Secretary of State Mr. Altamir Rôso, by a visit to the new Secretary of State Mr. FábioCherem who presented strong efforts and dedicated support to assist in the successful steps for Amsia Motors project in Brazil.
The new Secretary of State, Mr. Fabio Cherem, is a passionate eye toward in the Minas Gerias State Government, says Amsia. Their initial steps to expedite the remaining taxation process have been tremendous and are expected to be concluded promptly. Company management also reported an inauguration date shortly after the taxation finalization for the two projects in Minas Gerias. The project presents a great opportunity in the current market challenges in Minas where 11 automotive projects were lost to other neighboring states due to greater incentives, competitive project facilitation, and benefits.
Company management expressed that it believes that the MG State Government shall carry out its due diligence by securing the environmental friendly project with over 3,700 employees. The company is quite concerned about its economic development in this market, and consider aggressive steps to success for its people of MG.
Amsia confirms that it believes the MG location has been a better decision than the previous state. Upon 18 proposals received by Amsia to date, the company also received newer proposals from other states but expects MG to be successful. In the previous location media speculation only encouraged state glamour without substantial execution of the project, but major misinterpretation of company information caused the loss of the project.
The company says the only remaining point is to conclude talks regarding federal tax issues, which it intends to do shortly. The industrial plant targets an implementation process of three years to complete its construction and conduct the first successful production runs.
The Amsia project master plan, design, production projection, forecast, team consultation and management process, supply chain map, including marketing planning and preliminary selection of local suppliers has been executed since Jan, 2016 until the present day where the project execution is now in the second phase, per Amsia’s plan.
The area allocated for Sete Lagoas in MG is a total of 7.5 million square meters, and the Monte Alegre site’s total area is 1.6 million square meters. The company expects to invest $560 million in Sete Lagoas and around $600 million in Monte Alegre, generating 2,500 and 1,200 jobs in each city, respectively. Amsia says it is absolutely capable of investing independently, skirting skepticism about Brazilian financing conditions due to its high interest rates.
Since 2016 Amsia has been meeting with City, State and Federal ministries addressing all concerns and challenges about the project and received a warm welcome to date. The Minas Gerais Development Bank andCaixa EconômicaFederal, as well as other banks, have already expressed strong interest in financing Amsia Motors in Brazil.
Management reserves full discretion to observe and study the local proposals, which have been received and the rest tentatively scheduled following the inauguration of the project.
The initial automotive product implementation shall be composed of light commercial vehicles and gradually introduce truck-heads, buses and new electric technology-based passenger vehicles.
On the other hand, Amsia Global expands aggressively, engaging in a letter of intention and plans for execution shortly in Arizona, United States, for a compact electric vehicle and battery plant, which will assist strategically in North America. The official meeting is underway to meet the Governor of the state, the major, and other seniorUS officials.