Yanmar to build new factory in Brazil for tractors, gensets, engines

Yanmar announced plans to invest R$280 million (USD $51.7 million) in a new factory in Indaiatuba, in the state of São Paulo, Brazil, that is intended to expand its production capacity, integrate operations and enhance processes to meet rising demand.

The facility will produce tractors, as well as generator sets and OEM engines.

The new 140,000 square meter facility will initially have the capacity to produce 7,000 tractors per year. (Source: Yanmar)

“This new factory is essential for meeting market demand and advancing our growth in Brazil,” said Wagner Santaniello, innovation and marketing manager at Yanmar South America. “We aim to increase our tractor market share from 10% to 12% while maintaining leadership in mini excavators and expanding in other segments.”

Yanmar has been active in Brazil for more than 65 years and currently employs over 300 people at its Indaiatuba site. The new 140,000 square meter facility will consolidate manufacturing with administrative, commercial and executive offices for greater operational synergy. It will also implement the Yanmar Production System, based on proven manufacturing excellence from Japan, the company stated.

The facility will initially have the capacity to produce 7,000 tractors per year – up from 5,000 at the current local factories – and will include automated assembly lines, improved logistics and advanced safety and ergonomics systems to modernize operations, as well as sustainability features such as natural lighting, photovoltaic energy and automated lighting control.

The project is set for phased completion by 2030, with the first 36,000 square meter phase scheduled to begin operations in 2027. Overall, the project is expected to create about 100 direct and indirect jobs by 2029.