Holcim foresees investing US$ 1.14 billion in Brazil

Valor Econômico - 03/25/2008

Holcim Brasil S/A, subsidiary of the Swiss multinational Holcim, cement, concrete and aggregated producer, draws a setting of much warmed cement demand in the country in the next five years. Based on that perspective, the company - fourth in the national ranking of this sector - is getting ready to expand the offer from 4 million tons to 7 million annual tons in the national market to meet construction and infrastructure works, activities in strong expansion. To reach that goal, the subsidiary intends to invest R$ 2 billion (US$ 1.14 billion) in the modernization and expansion of its production, including the construction of a new factory, said the commercial and external relations' director Carlos Eduardo Garrocho de Almeida. The new investments will be made in three stages. The first one foresees expenditures of R$ 434 million (US$ 246.6 million) and was approved by the board of the multinational. The focus is remodeling and modernizing the five Brazilian factories of the subsidiary: two in the State of Minas Gerais, one in the State of Rio de Janeiro, one in Sorocaba (SP) and another one in Vitória (ES). The works begin this year. The second phase includes the expansion of the current capacity of 4.3 million tons a year, with payment of R$ 300 million (US$ 170.5 million). The expansion of the production line will be 1 million tons and should happen in the two mining factories - Pedro Leopoldo and Barroso. The project is in the phase of viability study to be sent for the head office's approval. The implementation of a new factory with expected production of 2 million tons a year will demand R$ 1.3 billion (US$ 738.6 million) and is in the phase of pre-viability studies. The place for the undertaking has not been chosen yet. The board of Holcim Swiss is to make a decision about the deal until the middle of the year.

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