Cipatex increases production to cater to building companies
Valor Econômico
Cipatex, a Brazilian manufacturer of synthetic laminated sheets, bets on a new real estate boom and decided investing R$ 20 million (US$ 10.4 million) on the enlargement of its manufacturing park of Cerquilho, unit in the interior of São Paulo responsible for the manufacturing of products aimed at construction, among other sectors. "With the conclusion of the investment, our goal is to increase the production by 25% until next year. We operate in several segments, but our focus at the moment is construction", explained William Marcelo Nicolau, commercial officer and son of the founder of the company.
Also according to the officer, half of the funds for the R$ 20 million (US$ 10.4 million) investment comes from the company own cash and the other part from bank loans. Besides the building sector, the company produces for a variety of segments like footwear, furniture, cars and pediatrics, among others. Today, 40% of the income of R$ 480 million (US$ 248.7 million) of Cipatex comes from the footwear industry and the other 60% from the sales of synthetic laminated sheets for other sectors. Ten years ago, the footwear segment was responsible for 60% of the income of the company founded 45 years ago.
One of Cipatex's strategies has been the diversification of the business due to the volatility of the footwear sector that suffers with the strong competitiveness of the Chinese products. Until 2012, the goal of the company is that footwear represents only 35% of the total business. Regardless the international crisis, another strategy of the company is to increase its presence in the foreign market, with special interest in the United States. Today, the exports are responsible for 15% and the goal is to achieve 20% within the next four years. According to the officer, the negotiations for the opening of commercial units of Cipatex in the United States within the next months are in advanced stage. Nonetheless, unlike what happens in Brazil where the company is a manufacturer of synthetic laminated sheets, in the United States, the idea is to sell the final product with a local partner.
After growing 16% between 2007 and 2008, Cipatex should end 2009 with growth of only 3% or 4% due to the crisis. The company has partnership with DuPont and with the Petrom petrochemical company, in Mogi das Cruzes.