04/27/2015 09h37

Mexichem expands investment in innovation

Company expects to grow 8% in 2015, which is above the average expansion estimated for the construction market

Investe São Paulo
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In 2014, Mexichem started receiving free support from Investe São Paulo for the completion of its investments in the state

Mexichem Brazil, a subsidiary of Mexichem group, a global leader in plastic pipes and joints, is making investments to increase its production capacity, including innovation as the main pillar, both in products and in the manufacturing process. The highlight this year will be the manufacture of water tanks of the brand Amanco using blow-molding, an unprecedented technology in Latin America that guarantees higher quality to the product, making it more uniform and secure.

In total, the company will invest R$ 164 million over three years, only in its two units in the state of São Paulo (Sumaré and São José dos Campos), including an increase in the production capacity of existing product lines and new lines, in the three segments of operation of the brand (building, infrastructure and irrigation). The project relies on the support from Investe São Paulo, the investment promotion agency associated with the Department of Economic Development, Science, Technology and Innovation of the state of São Paulo.

These investments are part of the capital injection to Mexichem Brazil, totaling US$ 100 million in three years (since 2013) in assets such as the synergy from the acquisition of Wavin in 2012, by the Mexichem Group, European leader in pipes and joints. “This has enabled conceptual changes and a broad view and represents investments in energy and workforce, which are all local,” said the president of Mexichem Brazil, Maurício Harger.

Water tanks – With investments of approximately R$ 20 million (the entire project), the implementation of the new process will provide a five-fold increase in the production of water tanks in the plant located in Sumaré, where the new machinery is installed. Imported from Europe, the equipment has the latest technology in the segment. Brazilian operators and process engineers working for the company were trained by the manufacturer’s experts to operate the machine and will multiply the expertise so that more professionals work in the production of the new line of polyethylene tanks.

In recent years, Mexichem had already outlined its strategy to bring an innovative technology to the water tanks market, considering the expansion of the real estate sector and the increasing need for the rational use of water. In addition, in the Brazilian supply model, every household, whether new or old, has at least one water tank for receiving and storing clean water from the public utility. “With the water crisis, the tendency is that consumers become increasingly concerned with water storage and the assurance to keep it well stored,” said Harger.

Advantages

The new line of water tanks, which will be part of the portfolio of Amanco Reservoirs, will supply the entire property market, including households and commercial establishments. Among the advantages, special mention to the triple layer, which helps to block sunlight, thus minimizing the risk of bacteria proliferation, and the white inner layer, which facilitates visibility for cleaning and the conservation of the stored water. In addition, due to the production process, the water tanks have the layers evenly distributed and higher control in the manufacture, which adds more strength. The exclusive lock offers security and quality in the storage of water by the consumer. The new products will be available with open and closed mouth and capacities of 310, 500 and 1000 liters.

The production is expected to begin in April and the new products should reach retail in the Southeast region in May. The focus on this region, which has the largest population in the country, will enable meeting the demand driven by new constructions and renovations and the water crisis.


Support

In 2014, Mexichem started receiving free support from the state government, through Investe São Paulo, for the completion of its investments in the state. The Agency has assisted the company mainly in terms of tax incentives and regulatory policies.

"Our goal is to make Mexichem thrive increasingly more. For this, we are available to streamline the processes and ensure more investments to the state of São Paulo. The construction sector is one of the sectors that most generate jobs in the state, and its expansion generates large impacts in the creation of jobs and income for the population,” said the president of Investe SP, Juan Quirós.


Growth

Mexichem Brazil expects to grow 8% in 2015, which means continuing to expand more than the average in the construction market, as in the previous years. The positive outlook is based on the company’s investments in increased production capacity and in the innovation of products and processes, such as the new blow-molding technology for the production of the new water tanks, new lines and segments, in addition to the communication of the commercial brands in the media, relationship and professional training.

In 2014, the gross revenue reported by the company totaled R$ 1.74 billion, which corresponds to a 12% grow compared to 2013 (R$ 1.57 billion), exceeding the growth estimated for the year, which was 10%, and more than double the estimates of Abramat and FGV for the building materials industry.

“Although the macroeconomic scenario is not favorable, we kept the investments sustained by the company’s business strategy, which is based on the pillars of sustainability, brand, innovation, people, services and operational efficiency,” said the president of Mexichem Brazil.

According to Maurício Harger, one of the advantages of the constant growth process of the company is the triple bottom line management, focused on a long-term vision of economic, social and environmental development. “Following this perspective, we have worked to strengthen the commercial brands of Mexichem Brazil with the consumer market,” he concludes.


New segment

This year, Mexichem will start operating in a new segment in Brazil, the segment of microduct solutions for voice and data telecommunications and in the energy and infrastructure sectors. The commercialization of the products will be promoted by the American company Dura-Line, a leading multinational producer of high density polyethylene pipes, which was acquired by the Mexichem Group last year.

With 19 production units around the world, in countries such as the United States, Mexico and South Africa, Dura-Line exports to more than 50 countries.