Amanco increases production by 20%
Valor Econômico 02/16/2009
Amid the news of mass layoffs, economic retraction and unprecedented crisis in several sectors, Amanco, the second biggest producer of pipes and connections in Brazil, decided this is the time to increase its productive capacity. As it foresees an increase of 22% in the sales volume this year, the company controlled by the Mexican group Mexichem is investing in the purchase of machines and equipment to increase to 150 thousand tons its productive capacity in the four plants it has in the country, an increase of 20%. The plans of the company, which registered an increase of 34% in its income in 2008 compared to 2007 reaching US$ 440 million, are not restricted to merely increasing the productive capacity. Amanco increased its marketing appropriation by 75% and it should invest nearly R$ 60 million (US$ 26.1 million) in marketing this year. Most of these funds will be invested in an advertisement strategy of the brand on the radio and television, more specifically in events related to soccer. The decision of investing R$ 51 million (US$ 22.2 million) in the enlargement of the productive units is part of this "reorganization" plan by Amanco. Last year the company worked at 82% of its installed capacity, a very high level in the opinion of the officer. At this time, Amanco does not plan on increasing the number of plants. Both the plants of São Paulo and two other in Santa Catarina, with the investments that are being made in the purchase of new equipment, will be able to meet the 2009 demand. The investment of Amanco does not focus only the growth of the market. The entire marketing effort and the increase of the scale are also directly connected to the goal of the company of gaining market from its main rival in Latin America, Tigre. Amanco assures the only country in which it is not the market leader is Brazil.