Deca gains more space at Duratex
Valor Econômico
Six months after the conclusion of the merger with the competitor in the area of wood panels, Satipel, in an operation that gave rise to the eighth-biggest industry of the sector in the world, Duratex gets ready to increase the production in another strategic segment, toilet fixtures. However, at the same time it increases the production in Brazil - besides the investment in fixtures, three already announced new lines of wood panels (MDF and MDP) should go into full operation until the end of the year -, Duratex informed it will study the feasibility of keeping the metal fittings plant that operates in Argentina.
If in the neighboring country there are doubts about the future of the operation, in Brazil the watchword is to become bigger. From 2007 until last year nearly R$ 1.66 billion (US$ 869 million) were invested in the Duratex operation, which in August completed its merger with Satipel. With those funds, the company almost doubled the productive capacity of fixtures, increased the metal fittings by 40% and increased the capacity to produce wood panels by 80%. For 2010, the forecast is to invest R$ 420 million (US$ 227 million), nearly 30% of which are intended for the expansion in the area of fixtures, whose plants operate at occupation rates above 90%.
In order to meet the growth projected for the sales of the industry of building materials - according to the Abramat (Brazilian Construction Materials Industry Association), the entity that represents the sector, the sales this year should rise 15% after falling more than 10% in 2009 -, Duratex will install a new furnace in the unit of Cabo de Santo Agostinho (PE). With such investment, the company should increase by 10% or 15% the production of fixtures.
After the merger with Satipel, nearly two-thirds of the businesses of Duratex were concentrated in the area of panels, which will receive 70% of the scheduled investments in 2010. As of the integration of the businesses, the "new" company, which took over the name Duratex, started being responsible for 43% of the national market of panels and became the biggest producer of the sector in the Southern Hemisphere. On the merger, the CEO of Duratex, Henri Penchas said that the fact the shareholders of both companies have similar visions facilitated the process.
Considering the combined results, Duratex had net profits of R$ 274.3 million (US$ 139.2 million) last year, a 26.9% decrease compared to 2008. The net earnings fell 8.3% in the same comparison, to R$ 2.25 billion (US$ 1.14 billion) and the EBTIDA reached R$ 618.32 million (US$ 313.9 million), a 15.4% decline. According to the CFO and Investor Relations Officer of the company, Flavio Donatelli, the Q4 figures already indicate recovery. "The setting is quite favorable for 2010", he said.