Guangxi LiuGong Machinery Co Ltd, a maker of wheeled earth moving machines and similar equipment, says Brazil could soon become its second largest market after China.

“I think Brazil has the potential to become our second ‘local’ market after China, a market that could serve as a springboard to spread to other countries in South America,” Yu Chuanfen, LiuGong’s Vice-Chairman, told Chinese newspaper China Daily.

The Chinese firm officially inaugurated its first – and so far only – manufacturing plant in Brazil in March 2015. The firm is fitting the unit to produce different types of heavy machinery.

Mr Yu added that LiuGong was considering overseas merger and acquisition opportunities in the future, especially in emerging markets.

LiuGong is based in Liuzhou in the Guangxi Zhuang autonomous region. According to China Daily, the firm is shifting its focus to overseas markets to offset domestic overcapacity.