Bahia announces possible port concession as BYD factory is confirmed to come to the state

Governor Jerônimo Rodrigues of Bahia announced on Wednesday (28) that the Chinese automaker BYD has confirmed its plans to establish a manufacturing plant in Camaçari, Bahia, taking over the former Ford factory. The government is currently working on potentially granting a regional port to the company to facilitate the transportation of future vehicle production.

The port mentioned above, located in the Aratu Bay near Camaçari, was previously under the control of a US company that ceased vehicle production in Brazil in 2021. In light of this, BYD has been negotiating with the government of Bahia and federal authorities regarding the possibility of assuming the port concession.

“We have already met with the Minister of Ports and Airports [Márcio França] and discussed the possibility of BYD managing the port or partnering with another company to ensure that the port not only handles cars but also other products, including equipment for the wind industry,” stated Governor Rodrigues. “The state will invest in improving the road infrastructure between the port and the industrial site.”

Financing support for production

Governor Jerônimo Rodrigues also mentioned that former President Lula expressed his intention to study a financing line to support the production of new cars in Brazil for BYD. Although the governor hinted at the possibility of support through the National Bank for Economic and Social Development (BNDES) or via tax incentives related to PIS/Cofins (excise taxes) and IPI (tariff on industrial imported industrial goods), he did not provide further details.

Factory installation timeline

According to Governor Rodrigues, BYD has been awaiting this indication to officially announce the factory installation schedule in Bahia. “BYD’s announcement will be made next Tuesday. The plan is for BYD to showcase some of its vehicle models as part of an exhibition. A complete schedule will be unveiled, including the setup process, the start of production, and the first automobile to be manufactured in Camaçari,” he added.

Source: Valor Econômico

To read the original news report, see: https://valor.globo.com/empresas/noticia/2023/06/28/governador-da-bahia-confirma-instalacao-da-fabrica-de-carros-chinesa-byd-no-estado.ghtml

Sharing is caring!