After China recently overtook the US as Latin America's main export destination, and in a sign of further Chinese investment to come, Union Group and China Communication Construction Company, one of the biggest engineering and construction companies in the world, have signed a landmark deal to develop infrastructure projects across the region.
The two companies form a consortium that will first tender for a Uruguay Government contract to restore and maintain a 140 km railway track, involving an initial investment of around US$150 million. The contract will run for 30 years.
Union Group and China Communication Construction Company plan to finance and develop ports, railways, highways and other infrastructure across Latin America.
Union Group is a privately-owned holding company with investments in Latin American infrastructure, agriculture, forestry, hydropower, oil & gas, mining and real estate. It was founded in 2006 by President Juan Sartori and has offices in London, Montevideo, Lima and Toronto.
China Communication Construction Company is a transportation infrastructure construction firm and the fourth largest global contractor in the world by revenue.¹ The company is involved in some of the most important and complex road, bridge, tunnel and port projects in China.Juan Sartori, President and Founder of Union Group, stated:
Oscar Leon, Chief Financial Officer of Union Group, commented:
"China Communication Construction Company is an ideal partner for us as we step up our investment in infrastructure across the region. This investment is fundamental to economic growth in a number of Latin American economies - decades of under-investment have held several countries back and these projects will have a multiplier effect on growth in the areas they affect."
"We are honoured to partner with China Communication Construction Company, one of the most successful and advanced construction firms in China and the world. The partnership gives both parties the perfect means to deliver major projects in a wide range of Latin American countries."