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March 15, 2016

Malaysia’s Scomi begins construction of rail manufacturing plant in Brazil

Malaysia-based Scomi Engineering (SEB) has started construction of its proposed monorail manufacturing facility in Taubaté, São Paulo, Brazil.

Malaysia-based Scomi Engineering (SEB) has started construction of its proposed monorail manufacturing facility in Taubaté, São Paulo, Brazil.

The Taubaté facility, to be modelled after the company’s main facility in Kuala Lumpur, is expected to strengthen the group’s position in the market.

To be built on a 98,000m² plot of land with an investment of BRL50m ($13.8m), the new facility will manufacture monorail trains, including rolling stock and bogies.

SEB secured the construction site from the São Paulo state government in recognition of its commitment to the development of Brazilian urban transport infrastructure.

Scomi Brazil Operations country president Hilmy Zaini Zainal said: "We have been in the Brazilian market for several years now.

"Since winning our maiden monorail contract for Line 17 Gold, we have come a long way, garnering two more Brazilian projects, Manaus and Line 18 Bronze.

"This investment is part of our strategy to localise manufacturing of monorail trains."

"We believe there is a lot more opportunity in Brazil, which we can capitalise on, and our commitment to this facility will strengthen our position in this market."

The factory is scheduled to begin production of monorail trains for São Paulo Line 17 (Gold) and Line 18 (Bronze) from 2017. The manufacturing will also have the capability to build metro and light rail vehicles in the future.

It is reported that all processes and manufacturing design will be in line with the Kuala Lumpur manufacturing centre.

Zaini Zainal added: "This investment is part of our strategy to localise manufacturing of monorail trains.

"This will help us improve manufacturing efficiency and boost local human capital development through job creation."

The Taubaté facility is strategically located between São Paulo and Rio de Janeiro, and will have good access to major ports and road networks.

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