XCMG’s First Overseas Bank, Banco XCMG S.A., Seeks New Opportunities in Industry-Finance Integration
BELO HORIZONTE, Brazil, Jan. 13, 2020 /PRNewswire/ -- XCMG (SZ: 000425), China’s leading construction machinery manufacturer, is looking to build a new finance platform for Chinese and Brazilian companies as its first overseas bank, Banco XCMG S.A., sets to open in the first quarter of 2020 in Pouso Alegre.
The project was approved by the Central Bank of Brazil (Banco Central do Brasil, BCB), the principal monetary authority of Brazil in October 2019. Banco XCMG S.A. is a breakthrough for XCMG to exploit the field of financial services and support the upstream and downstream of the supply chain in purchasing and sales and currently holds licenses for finance leasing, credit services and investment banking.
In Brazil, nearly 95 percent of construction equipment sales are completed with bank loans. With in-depth knowledge of the construction machinery industry, Banco XCMG S.A. will have the capability to tailor financial products to end-users and dealers, making transactions more efficient and cost-effective.
“The establishment of Banco XCMG S.A. is closely related to the strong trade corporation between China and Brazil, the bank will promote investment in infrastructure, drive Sino-Brazil cooperation, improve the investment climate for Chinese companies in Brazil and offer support for the recovery and sustainable development of the local economy,” said Wang Min, chairman and CEO of XCMG.
In POUSO ALEGRE, Brazil named XCMG’s Pouso Industrial Park in Brazil as the fourth provincial-level overseas economic and trade zone of Jiangsu Province. In Pouso Alegre, XCMG Brazil has created 424 job opportunities for the locals and will continue to play an active role in promoting Minas Gerais to Chinese companies.
Romeu Zema Neto, Governor of the State of Minas Gerais, noted that he believes XCMG Brazil will take the opportunity of the industrial park and corporate bank to achieve well-grounded growth, expanding its market recognition and brand influence, and Minas Gerais will offer the greatest support to XCMG’s long-term development in the state.
XCMG is a multinational heavy machinery manufacturing company with a history of 76 years. It currently ranks sixth in the world’s construction machinery industry. The company exports to more than 183 countries and regions around the world.