Fiat Industrial's CNH division has signed a 'Memorandum of Understanding' with the state of Minas Gerais, Brazil, to lay the groundwork for a R$600 million investment in a new construction equipment plant in Montes Claros, in the northern region of Minas Gerais. The Memorandum was signed at Fiat Industrialís headquarters in Turin, Italy, during a visit by a Minas Gerais state government delegation, led by Governor Antonio Anastasia.

"This agreement strengthens our ties to the state of Minas Gerais and reconfirms a commitment started 40 years ago with Fiatís first investments in the region. Minas Gerais holds a prominent place in the Brazilian economy and therefore is an ideal location for Fiat Industrial, and for CNH in particular, to grow in Brazil," said Sergio Marchionne, Chairman of Fiat Industrial and CNH.

The plant in Montes Claros will add to the companyís presence in Minas Gerais, which includes a facility in Contagem. Originally established in 1970, the site was the first Fiat factory to be located in Brazil, and currently produces equipment for CNHís construction brands, Case and New Holland Construction.

The new plant is scheduled to begin operations in 2014. It is expected to generate about 2,700 jobs, 700 of which will be direct and 2,000 from a supplier hub for parts and components that will be established in the vicinity of the factory. The total area of the complex in Montes Claros is expected to reach 2 million square meters, with 700 thousand square meters dedicated to the plant itself.

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