10/08/2008 16h00
Votorantim guarantees investment project
Valor Econômico - 10/08/2008
The crisis that has been jeopardizing the credit offer in the international market and affecting the financial conditions of the country has not shaken the pillar of the industrial projects foreseen by Votorantim for the next years, guaranteed for one of the shareholders of the group yesterday. The R$ 25 billion (US$ 10.9 billion) investment project package should not change, but the implementation's timing may be delayed, said businessman José Roberto Ermírio de Moraes, through a spokesman. Votorantim Celulose e Papel (VCP) should conclude the construction of the Três Lagoas (MS) plant in May, which should not change. But the plan for the Rio Grande do Sul unit may be postponed depending on the market conditions. The Votorantim group decided to delay the purchase of Arapar, one of the controllers of Aracruz, postponing the plan to create a giant producer of cellulose, whose control will be shared with the Safra group, to an indefinite date. Aracruz indicated potential loses of R$ 1.95 billion realized with derivative operations, closed in the futures market. The operations were contracted with the average US dollar of R$ 1.91 - yesterday the US dollar jump leaped again to more than R$ 2.30. The Votorantim group guaranteed, however, that it continues interested in the increase of control of Aracruz, but it decided postpone it so as to wait for more stability of the markets. It affirmed that the decision for the postponement was taken in common agreement between the parties. In case the deal is undone, Votorantim will have to pay a hefty penalty to Arapar.
