Palfinger buys South American Tercek

As part of a policy to increase its presence in South America, the Palfinger Group has acquired 100% shares in the Brazilian engineering company Tercek Usinagem de Precisão Ltda.

Tercek Usinagem de Precisão Ltda is headquartered in Caxias do Sul. Tercek produces metal components and develops electric-powered bus lifts under the brand name Líbero. The company was looking for a strong partner so it could fund market penetration and expected growth.

Palfinger said that Tercek is a small-sized enterprise which, due to its high innovative power, receives funds from the national Studies and Projects Finance Organization (FINEP). Líbero bus lifts are a new product segment that is considered to have enormous market potential.

The bus market in Brazil has recorded annual growth of approximately 8% over the past few years. In connection with the further expansion of infrastructure and public transport, it is expected that these growth rates will continue in the coming years as well. The 2014 FIFA World Cup and the 2016 Summer Olympics, which will take place in Brazil, will also contribute to this development.

From 2014, all municipal buses will be statutorily required to be equipped with a bus lift for passengers with limited mobility. Accordingly, the market for this product group is he set for rapid growth.

Herbert Ortner, chief execurtive officer of Palfinger said, “For Palfinger, South America is a growth market in which we want to strengthen our presence with products beyond loader cranes. Líbero is a first-rate product for a growing market segment, and it conforms to regional requirements.

“In Great Britain we are already in the market with passenger lifts, and we are developing regional products in the rest of Europe as well. The takeover of Tercek is a small but valuable step for our growth in South America.”

Palfinger plans to support and enhance Tercek’s new accessibility products and, in order to make optimum use of synergies, the factory will be relocated to Palfinger’s existing site at Caxias do Sul in the medium term.