On Nov. 4, 2025, Lingong Heavy Machinery’s Brazilian subsidiary, LGMG Machinery Brazil Ltda., promoted its globalization strategy in the South American market with the celebration of its plant in Indaiatuba, São Paulo State, Brazil. This move signifies a deepening of Lingong Heavy Machinery’s South American expansion and marks an important milestone in China’s industrial advancement.
The establishment of the Brazilian subsidiary carries multiple strategic advantages for Lingong Heavy Machinery, providing a robust platform for serving local Brazilian customers through localized operations. It addresses customer needs with customized solutions and develops confidence in Brazilian customers by ensuring product supply stability through a localized spare parts warehouse, improving after-sales service, and enhancing technical support.
Simultaneously, capitalizing on Brazil’s geographical advantages, Lingong Heavy Machinery is well-positioned to expand into neighboring South American markets in the future, leveraging Brazil’s superior location and convenient transportation links to facilitate the extension of products and services to other countries in the region, laying a solid foundation for further South American business expansion.
Source: Finance Sina Read The Article
PSR Analysis. The establishment of Chinese construction machinery companies in Brazil marks a pivotal strategic milestone in their global expansion. It deepens the economic and trade cooperation between China and Brazil and leverages Brazil’s role as a regional gateway for China to penetrate the broader Latin American market.
From an international political standpoint, this move strengthens bilateral trust, with companies like XCMG and Zoomlion integrating Chinese technological standards into Brazil’s industrial policies through a model that combines investment, job creation, and technology sharing.
This approach positions Chinese engineering machinery as a tangible symbol of cooperation, facilitating future participation in large-scale national projects such as Brazil’s “New Industrial Plan.” Economically, Latin America’s infrastructure gap, estimated at 3.5% of its GDP, drives demand for construction and mining equipment, while Chinese firms enhance supply chain efficiency through localization.
For instance, XCMG’s Brazilian base boasts an annual capacity of over 10,000 units, enabling rapid responses to Brazil’s “Mining 4.0 Plan.” Zoomlion’s localized R&D reduces equipment failure rates in high-altitude conditions by 40%, and Lingong Heavy Machinery’s local spare parts warehouses cut maintenance response times from 72 hours to 24 hours.
This “Made in Brazil, Serving the Region” model has helped Chinese brands gain a 12-percentage-point increase in market share in countries like Peru and Chile within three years.
In terms of market trends, Brazil’s engineering sector is evolving toward high-end and green solutions, with Chinese companies tailoring their product portfolios to meet these demands. Chinese-made excavators now account for 50% of Brazil’s imports, and XCMG’s adoption of 5G autonomous driving technology in its Brazilian factory has enabled zero-emission operations in Vale’s mines.
Zoomlion’s comprehensive service center in Betim has reduced customers’ total lifecycle equipment costs by 18%, while Chinese brands’ share of Brazil’s high-end market surged from 15% in 2018 to 31% in 2025.
For Chinese firms, the Brazilian experience signifies a transformative shift from “going out” to “going deep,” encompassing value chain upgrades (e.g., XCMG’s local bank offering financial services), standard exports (Zoomlion’s initiatives boosting local digitalization by 25%), and cultural integration (Lingong’s “China-Brazil Joint Innovation Center” training over 200 local engineers). As a result, Chinese construction machinery’s brand recognition in Latin America climbed from 37% in 2015 to 68% in 2025.
Looking ahead, the success of this model offers strategic lessons: it mitigates political risks through participation in Brazil’s “Accelerated Growth Plan,” exports Chinese new energy and smart construction standards as regional benchmarks, and builds a comprehensive service network across the Andes and Amazon regions.
In summary, the localization strategies of Chinese engineering machinery companies in Brazil demonstrate how “deep localization” can drive sustainable growth in emerging markets, setting a replicable blueprint for global expansion. PSR
Jack Hao is Senior Research Manager – China for Power Systems Research
