OREANDA-NEWSXCMG, China's largest machine-building corporation, will invest up to 300 million Brazilian reais (about $ 74 million) in the development of heavy engineering in Brazil over the next five years. To do this, the company will open its first bank in the South American republic in the first half of 2020, the Folha de S. Paulo newspaper reported on Monday, citing XCMG President Wang Min.

According to him, through the new institution it is planned to provide loans to local distributors and industry enterprises. In addition, a company from China plans to expand production at its plant in Pouzu Alegre (Minas Gerais), opened in 2014, as well as attract Chinese suppliers to Brazil to create an industrial park with an area of ​​140 thousand square meters on the basis of its enterprise.

According to estimates of Robert Pontis, appointed vice president of the new bank, the volume of lending in the first year should be about 400-500 million reais ($ 100-125 million).

The expected opening of the bank will be a consequence of the implementation of the agreements reached during the Sino-Brazilian contacts in November last year to provide China with $ 100 billion from five state funds in the framework of the investment program, the newspaper recalls. XCMG is the fifth largest in the world and the first manufacturer of engineering equipment in China with an annual turnover of $ 30 billion.