Ricardo Alexandre Santos Vice President, Mining Equipment Division KOMATSU
Can you introduce the presence of Komatsu in Brazil?
Komatsu has various business units in Brazil. Besides mining, we have a construction unit, a factory located in Suzano, a forestry unit, a bank and Modular Mining Systems. We cover the entire process in surface mining, from drilling equipment to hydraulic excavators and trucks. Our underground portfolio includes low-profile loaders, trucks, and roof support systems, and we are also developing transport systems for both mining segments.
The mining business at Komatsu has grown significantly. In 2017, we had about 400 employees; by 2024, that number has increased to over 1,500. Since 2013, we have invested heavily in the Brazilian market, whether through new structures, inventory of parts, or workforce training. The Brazilian mining market is one of the most important in the world, and our commitment to it is reflected in our growth. What are the main developments facing the mining sector in Brazil?
One of the biggest challenges is the rapid growth of the mining sector and the need for skilled labor. Since 2017, we have more than tripled our workforce in the mining division but finding and training qualified personnel is crucial. To address this, we have initiated training programs that support local communities, providing professional training to local individuals, some of whom we hire, and making them available to our clients or even to the competitors. What are the strategic goals for Komatsu in Brazil in the coming year?
Our primary goal is to enhance our support for clients while further elevating the working environment for our employees. We aim to lead technology development and solutions that optimize production without requiring additional equipment. We anticipate 2024 will be even better than 2023, and we plan to continue fostering close relationships with our clients to ensure efficient processes.
Alcides Cavalcanti Trucks Managing Director VOLVO BRASIL
Could you introduce us to Volvo Brasil and your history and footprint in the country?
In Brazil, we have a manufacturing plant dedicated to Volvo trucks and buses that have been operating for 45 years. Additionally, we have a separate plant for Volvo Construction Equipment in São Paulo, located in the municipality of Pederneiras. Our dealer network in Brazil is extensive, comprising 13 nationwide dealer groups with 107 branches. Moreover, we operate 48 on-site service points within various sectors such as sugar cane, construction, mining, and timber operations. 2023 was a remarkable year for Volvo Trucks globally, with over 190,000 units sold. In Brazil, we delivered over 19,000 units. We experienced a 20% sales decline compared to last year, primarily due to the introduction of new Euro 6 emission standards, which led to a pre-buy effect in 2022. During that period, we achieved a record in Brazil, delivering 24,000 units. Looking ahead, we are optimistic about 2024 and expect sales to surpass those of 2023.
We are market leaders in mining, boasting a market share of nearly 45% this year. Can you discuss the future of vehicle electrification and automation in Brazil?
Introducing electric trucks in Brazil marks an exciting development, though widespread adoption will take time due to regulatory and infrastructure challenges. Brazil imposes a 35% import duty on outside products, which, combined with high local taxes, impacts the viability of electric trucks. Infrastructure for electric vehicles, particularly for long-haul road operations, is underdeveloped. Technical limitations also exist, such as the current front axle load limit of six tons in Brazil compared to nine tons in Europe. Despite these hurdles, we have initiated testing with a small fleet of electric trucks. Volvo has made significant strides in automation through Volvo Autonomous Solutions, focusing on both trucks and construction equipment in mining operations. We are currently developing remote control solutions for mining trucks, responding to demands from major companies like Vale.