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Apple denies Brazilian expansion plans

The company denies a published report that it plans to build a manufacturing plant in Brazil for its PowerMac G4 computers.

Apple Computer today denied a published report that it plans to build a manufacturing plant in Brazil.

"The report is not correct," said Fernando del Granado, Apple's marketing manager for Latin America. "We have no plans to build a manufacturing site there."

Earlier, the Brazilian newspaper O Estado de S. Paulo reported that Luciano Kubrusly, who heads Apple's Brazil unit, met yesterday with the governor of Santa Catarina state in southern Brazil to talk about the possibility of building a plant there.

Estado reported that Apple plans to build PowerMac G4 computers, which are aimed at professionals and graphic designers. The paper did not cite sources.

Brazil has become one of the new frontiers for electronics companies looking to reduce overhead. Many PC makers and contract manufacturers have already opened plants in southern China and Mexico to exploit low wages.

Although labor costs are low in Brazil, some manufacturers have suspended plans to move there because of issues with the local industrial infrastructure, sources have said.