Cimpor to increase by 30% its production in the country
Valor Econômico - 07/10/2008
The third largest cement manufacturer of the country, Portuguese Cimpor, is putting in practice a R$ 400 million (US$ 250 million) investment plan to increase its productive capacity by nearly 30% and consolidate its position in the heated Brazilian market. Until the beginning of 2011, the company will considerably increase the productivity of the furnaces of three of its main factories and reactivate a line of production at a fourth unit, besides making minor investments in four other factories in the country. In order to meet to the growing demand the company also intends to build two new plants until 2011, one in the Mid-West region and another one in a Southern or Southeastern state. The two new units, which will have a productive capacity of at least 650 thousand tons per year each, are not included in this package of investments that is being put in practice now. According to the commercial officer of the company João Ghira, Cimpor is still studying the size of these plants, the location and the volume of resources that will be spent in this new investment. At this moment, Cimpor is putting its chips in the units that have faster expansion capacity. Cajati, located in the Vale do Ribeira (Ribeira River Valley) Region, in the South of the State of São Paulo, which can produce up to 1.3 million tons a year, may receive one of the greatest slices of these resources. There, Cimpor will increase the capacity of the furnace of the plant and, with such investments, intends to increase the productive capacity by 35%. The units of João Pessoa (PB) and Cezarina (GO) will also have their furnaces expanded. Besides, the company now initiates the process of reactivation of the first furnace of the unit of Campo Formoso (BA), which stopped being operated since the manufacturer built a new line of production, in 2003. With that the productive capacity will exceed one million tons a year. When all expansion investments are concluded, Cimpor may increase its capacity of production to nearly 7 million annual tons. This year, the company may sell something close to 4.5 million tons of cement to the market, which keeps it at the third position in the national ranking, behind leader Votorantim and the João Santos group, from Pernambuco, owner of the Nassau brand.