Prime Minister David Cameron and JCB chairman Sir Anthony Bamford at the opening of JCB Brazil's new factory.

UK Prime Minister David Cameron has officially opened JCB's new USD100 million factory in Brazil as the company bolsters its position in the Latin American markets.

Cameron, who was on a trade mission to Brazil, spent an hour last Thursday touring the 350,000 sqft. (32,516 sqm) plant in Sorocaba City in São Paulo state. He was given an overview of the production processes for backhoe loaders, tracked excavators, wheel loading shovels, Loadall telescopic handlers and compaction equipment, which the factory will manufacture.

JCB chairman Sir Anthony Bamford and JCB Brazil managing director Carlos Hernandez took Cameron around the plant, where he also met many of the plant's 200 employees.

Cameron says: "JCB's expansion in Brazil shows how British companies can capitalise on the opportunities for growth in Brazil, creating new opportunities in JCB factories in Derbyshire and Wales.

"This is a great example of Britain's engineering prowess and reflects that the UK is a world leader in innovation and technology."

Bamford says South America represents a "huge opportunity for growth" for JCB and the investment in a new factory is critical to building on the success it already enjoys in the market.

"There are GBP20 billion (USD32.3 billion) worth of infrastructure improvements scheduled in Brazil and JCB's new factory will enable us to capitalise on those projects, including the 2014 World Cup and 2016 Olympic Games," he explains.

"Our investment will also have a positive impact on the UK economy because at full capacity, the Brazilian plant will import GBP100 million (USD161.3 million) of components annually from the UK, including engines and transmissions," Bamford adds.

At full capacity, the new JCB plant will be able to produce 10,000 machines a year.

The new factory replaces two smaller plants in Sorocaba, the first of which JCB opened in 2001 to produce backhoe loaders and the second in 2010 to produce tracked excavators. It represents one of the biggest single investments in JCB's 67-year history.

JCB is the world's third-largest construction equipment manufacturer by volume. A family-owned business based in Staffordshire, JCB's turnover in 2011 was GBP2.75 billion (USD4.44 billion). The company employs over 10,000 employees in 22 plants around the world, of which 6,000 are based in its 11 UK factories. Over 75% of its UK output is sold to overseas customers in over 150 countries.