09/02/2008 15h10
Arysta invests to double its size in the country in five years
Valor Econômico - 09/02/2008
Completing 40 years of work in Brazil, Japanese manufacturer of crop protection products Arysta LifeScience decided to increase the weight of the country in the global business of the company, which works in 125 countries. The company launched a plan to double its size in the country in the next five years. With this increase, the company's Brazilian branch will be responsible for at least one fifth of the group's sales. "This is a reflex of the increase of importance of the Brazilian agriculture. The country has stable economy and presents a great opportunity for the improvement of the activity", said Christopher Richards, president and main executive of the company, to Valor. "Brazil has many areas for the expansion of agriculture and is traditional in the sector, both in production and in exportation". With revenues of nearly R$ 300 million (US$ 155.4 million) in 2007, the Brazilian unit corresponds to nearly 15% of the group's global revenues, which was US$ 1.3 billion in 2007. In five years, doubling size, according to the plan, Brazil's share will always be greater than 20%, according to the executive. The plan includes the construction of a new production line of pesticides, which will work in Salto de Pirapora (SP), in the same complex where the company has its industrial park. The investment in this line will be US$ 3 million. With the disbursement, the unit's capacity of production, currently 9 thousand tons a year per shift, will be expanded by 10% to 11%. Traditional in the market of pesticides for fruit and vegetable crops, Arysta will reinforce its sales of products focused on sugar-cane crops. The company affirms to have 4% interest in the total sales in this sector in the country, around US$ 670 million, but that it intends to increase the share to 11%. The reposition in the Brazilian market will also include the entrance in the market of products for pastures, in which the company does not work yet. The project of doubling size in Brazil in five years may include also the acquisition of companies in Brazil, but this alternative is secondary, affirms Richards. Arysta's investments will also be made for new hires and reinforcing its machinery, but the company did not present greater details about these allocations.
