In a decision designed to respond more quickly with new products for Brazil's and Latin America's growing ATM markets, NCR Corp. announced Monday it will open a combination manufacturing plant and engineering facility in Brazil. NCR may construct a plant or take over an existing building.
The announcement is the second this month that NCR, the world's largest ATM manufacturer, has said it will take historically outsourced manufacturing in-house. NCR also plans to take over a rehabilitated manufacturing plant in Columbus, Ga., to make SelfServ ATMs (ADN, 6/4).
The plant in Brazil also will make SelfServ ATMs, and engineers will custom-design the machines to meet customer demands. NCR initially will spend $37.5 million on the plant, which is scheduled to open in December, Richard Maton, an NCR spokesperson, tells ATM&Debit News.
The facility will employ 250 workers, he says. NCR declined to say precisely where the new operation will be located, but the Duluth, Ga.-based company has applied for a building permit in the state of Amazonas in northern Brazil. In the 1850s, Amazonas was known as the world's rubber capital. Since then, electronic-manufacturing companies Sony Corp. and LG Electronics have opened factories in Amazonas' capital city of Manaus.
The manufacturing plant will serve banks in Brazil, the rest of South America, Latin America and the Caribbean, Maton says.
Latin America's installed base of ATMs has been growing at 7% to 8% per year, which is faster than North America and Western Europe but slower than Central and Eastern Europe, the Middle East and Africa, and the Asia-Pacific region, says Dominic Hirsch, managing director of Retail Banking Research, a London-based strategic-marketing firm.
NCR is opening its own manufacturing plant because it can help the manufacturer respond more quickly to the needs of Brazil's market, which NCR wants to dominate, according to Bill Nuti, company CEO and chairman.
Brazil is the world's third-largest ATM market, and deployments there could grow by 16% by 2012, NCR says. "With this new capability, we believe we will be better positioned to take market share by providing leading hardware [and] software ... tailored specifically to meet the needs of our customers," Nuti said in a statement.
NCR also expects the facility to reduce operating costs, a key company strategy. Flextronics International Ltd., a Singapore-based company that has a manufacturing plant in Sao Paulo, Brazil, has manufactured ATMs for NCR in South America since 2007. Unlike in the U.S., ATMs in Brazil also dispense personalized checks, say industry analysts. And some of the machines are activated through biometric identification, such as palm prints. ATM