Duratex invests US$ 606 million in a new production line
O Estado de S. Paulo - 05/08/2008
Yesterday the construction material manufacturer, Duratex, announced it will invest R$ 1 billion (US$ 606.1 million) in the setting up of a new wood board production line. According to the company's announcement, the investment will be made in the next seven years, in an area where Duratex already has a plant, in Itapetininga, in the countryside of the State of São Paulo. The new line will be dedicated to the production of a type of panel known as MDP (Medium Density Particleboard), which is considered to be a product with more advanced technology than the traditional particleboards used in furniture and doors. With a production capacity of one million cubic meters per year, the unit will be the largest MDP production line in Brazil and one of the largest in the world, according to Duratex. The plant is to start operations in the second half of 2010. The purpose of Duratex is to meet the growth of the furniture industry that has followed the strong expansion of civil construction. The location of the plant, according to Duratex's announcement, is strategical. It is close to the major furniture manufacturing centers of the Country and also to the main wood suppliers. The investment will be made with private funds from Duratex and with funds from the BNDES. In 2007, the company sold R$ 1.7 billion (US$ 881 million) and had net profits of R$ 318.9 million (US$ 165.2 million), a growth of 41.1% compared to 2006. A company of the Itaú group, Duratex owns trademarks such as Deca and Hydra. Last month, it purchased Ideal Standard do Brasil, a company specialized in the manufacturing of bathroom fixtures, for R$ 60 million (US$ 36.4 million).