05/28/2008 08h47

Brazil gains weigh in businesses of German DVA

Valor Econômico - 05/28/2008

Brazil will become the flagship of the agribusiness' activities of the German group DVA, which, in 2008, completes 40 years of life. The investment for this change is US$ 100 million up to 2014, half of which aimed at a plant of products for crop protection to be set in Ituverava (SP). In the investments' plan it is foreseen an acquisition of a plant related to the animal nutrition sector that may take less than US$ 20 million, according to the chief executive officer of DVA Brasil, Carlos Pellicer. DVA - with arms in the veterinary, food and pharmaceutical industries, besides the agricultural line, that produces and sells crop protection products - is present in 60 countries and sold US$ 300 million in 2007. And the company arrived in Brazil only five years ago! Its sales in the country amounted to US$ 7 million in 2005, increased to US$ 24 million in 2006 and reached US$ 53 million in 2007. For 2008, the company in Brazil projects income of US$ 100 million. When the Ituverava plant is set, in 2012, sales are expected to reach US$ 250 million, which will represent half of the global income of the company in agribusiness, says the international president of the German group, Matthias Damm. The agricultural segment is, on its turn, the most important of the businesses of the company, with nearly 60% of the total income. For 2012, Damm says that DVA expects to sell US$ 800 million worldwide, and in all its fronts of operation. "Brazil will lead the world agribusiness in the coming years. Strengthening the activities in the country is part of this vision", affirms Pellicer. Exports will be responsible for half of the production of the new unit of the company, estimates the officer. Sugar cane, soy, corn, cotton and citrus are the crops for which greatest part of the line of products of DVA is intended. Regarding soy, the company does not sell a specific product for the Asian rust, one of the most feared diseases in the grain crops, but fungicides that complement its combat. The company will still research and develop new products in Brazil, an activity that is currently concentrated in Hamburg, Germany, headquarter of the group. For the segment of technology that will concentrate the technical data of the DVA products, the total investment may be US$ 30 million. The setting of this branch of the company in the region of Campinas is under study. "We want to take advantage of the good Unicamp's offer of specialized manpower", affirms Pellicer.