Marcopolo SA, a Brazilian truck and bus bodies manufacturer, rose to a one-week high after saying it will build a 35 million-real ($17 million) plant in the state of Espirito Santo.
Shares gained 1.2 percent to 9.02 reais at the close in Sao Paulo. The benchmark Bovespa index advanced 1.9 percent.
Marcopolo signed an agreement with the state government to open a new plant in the Sao Mateus municipality. The facility will focus on the Volare minibus and is scheduled to open in the second quarter of 2013, the company said in a regulatory filing after the market closed yesterday.
“It is in line with the company’s strategy to diversify operations geographically,” analyst Renata Faber at Banco Itau BBA wrote in a note to clients dated yesterday. “The production of these minibuses in two different plants reduces the company’s operational risks, and the current plant is already producing at near full capacity.”
Volare currently is produced at Marcopolo’s plant in Caxias do Sul in the state of Rio Grande do Sul, according to the company’s website.
Marcopolo rose 27 percent this year, while the Bovespa fell 3 percent in the same period.