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Iochpe-Maxion SA, Brazil's largest maker of railroad freight cars, said it may build a plant in either China or India to produce truck wheels at a lower cost.

Daniel Ioschpe, president of the company, said the company expects to complete studies on the plant by year-end to the make a final decision. The plant would supply Asian markets, he said.

"The plant would be a manufacturing center with cheaper costs and it would be more attractive when compared with Brazil and other markets," said Ioschpe in an interview in Sao Paulo. "The appreciating currency is making production abroad more attractive."

Brazil's real has jumped 28 percent in the past 12 months against the dollar, the best performance against the dollar among the 61 currencies tracked by Bloomberg. The stronger currency is increasing production costs in Brazil.