Brazil Stock Guide — Brazilian specialty materials maker FCC has invested R$50 million ($9 million) in a new automotive materials plant in Campo Bom, in the southern state of Rio Grande do Sul, as it seeks to replace imports and expand exports.
The facility will produce thermoplastic vulcanizate, or TPV, a rubber-like material used in vehicle components that require heat resistance, durability and dimensional stability. FCC said it is now the only producer of the material in Brazil.
The plant was designed with enough capacity to match Latin America’s entire current TPV consumption, according to the company, although FCC did not disclose its annual production capacity in metric tons.
“We invested in technology, processes and quality to offer the market an automotive-grade TPV made in Brazil that meets global standards and is ready to serve both domestic and international customers,” FCC Chief Executive Marcelo Reichert said.
FCC said its TPV formulations meet technical specifications established by Stellantis, Volkswagen, General Motors, Toyota and Hyundai, allowing the company to supply parts manufacturers participating in those automakers’ supply chains.
The highly automated facility currently employs about 20 workers. FCC already exports TPV to Mexico and is preparing its first shipments to the United States and Canada. The company expects to secure IATF 16949 certification, a global quality-management standard for automotive suppliers, in September.
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