Hyundai Heavy Industries’ construction equipment is on display at the M&T EXPO 2012 in Sao Paulo. The firm signed a contract to export 500 pieces of heavy machinery to Brazil during the expo. / Courtesy of Hyundai Heavy Industries

By Park Si-soo

Hyundai Heavy Industries (HHI) said Thursday it has struck a $70 million-worth deal in Brazil to export 500 pieces of construction equipment to the South American nation.

It said the deal was signed during the M&T EXPO 2012, the largest construction equipment exhibition in Latin America taking place in Sao Paulo from May 29 to June 2.

Under the contract, HHI will export 300 excavators, 150 wheel loaders, and 50 backhoe loaders. The company plans to complete a factory with a capacity to produce more than 2,000 pieces of construction equipment annually in Rio de Janeiro during the second half of this year.

It said the factory will help achieve the ambitious goal of one of the three largest construction equipment makers in the world by 2016.

“Last year, we were the top manufacturer of excavators and wheel loaders in Brazil with a 23 percent market share,” HHI said in a statement. “The factory will allow us to have a stronger presence in the local market.”

The company said Brazil is a “golden market” for construction equipment manufacturers, citing ongoing economic growth projects, the country’s hosting of the FIFA World Cup in 2014, and the 2016 Summer Olympics in Rio de Janeiro.

HHI will open additional overseas factories in China and India in line with a business expansion strategy.

In April, HHI signed a $120 million-worth contract during the Intermat Paris 2012 convention to export 1,500 pieces of construction equipment to Europe.