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June 25, 2014

Topsoe takes first steps to establish automotive catalyst production in Brazil

Haldor Topsoe A/S is currently in the process of establishing a production facility in Brazil. The facility will focus on manufacturing catalysts that can remove dangerous nitrogen oxides (NOx) as well as particulates and hydrocarbons from the engine exhaust of diesel vehicles such as buses and trucks.

Recently Topsoe leased two buildings in an industrial park located in Joinville, Santa Catarina and work is now ongoing to obtain necessary regulatory approvals and place orders for production equipment. The goal is to get the facility up-and-running within the coming year. 

“Establishing production locally is an important prerequisite for us to realize our full potential in Brazil, but also other parts of Latin America. Brazil is officially encouraging that import of parts is converted into local production – and backs it up with concrete incentives. For instance, if the local content of a heavy duty vehicle exceeds 70%, financing will be granted at a subsidized interest rate. Moreover, import duties on catalysts from abroad will increase and thereby create a a strong incentive to establish production on Brazilian ground”, says Bjerne S. Clausen, CEO of Haldor Topsoe A/S.

Of all the countries in the Latin American region, Brazil offers the largest growth opportunity for Topsoe’s automotive catalysts. There are close to 40 million passenger cars, trucks and busses on the Brazilian roads today and Brazil is by far the largest manufacturer of heavy duty vehicles in the region. In 2013 more than 3.7 million vehicles left the assembly lines in the country out of which 225,000 were heavy duty vehicles. 

Brazil introduced the new emission standard Euro V on January 1, 2012. Consequently, for more than two years, all trucks and busses leaving assembly lines in the country have been outfitted with catalysts. All of these catalysts, however, have so far been produced outside of Brazil. 

Topsoe is a leading player globally in the field of treating engine exhaust from diesel vehicles. Devices using Topsøe’s catalysts are installed in the vehicle’s muffler to remove harmful substances. Since the sale of these devices began in 2006, more than 250,000 heavy trucks and buses worldwide have been equipped with Topsoe’s catalysts and technology. 

New laws in Europe are gradually tightening the regulation of diesel vehicle emissions, and other countries – including a number of key emerging economies around the world – are beginning to enact laws modeled on European standards.  

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