Eucatex looks to invest in north-east Brazil

9 November 2011

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Eucatex is the latest Brazilian wood panels manufacturer to express an interest in investing in forests and board production in the fast developing north-east region of Brazil.

The São Paulo-based industrial group, which produces medium and high-density fibreboard (MDF/HDF) and medium density particleboard (MDP), is reported to be targeting the small northern state of Piauí for development.

Initially, Eucatex is seeking forest land in Piauí, a virtually landlocked north eastern, largely agricultural state, with a view to setting up a panel making plant, revealed Paulo Maluf, a federal Brazilian congressman and senior member of Eucatex’s owning family.

Mr Maluf added that Eucatex is looking at a substantial investment project which would include constructing a local plant to produce MDF and MDP panels, according to the regional press reports.

."The new investments are still dependent on many conversations with the government, but [we] will mount an investment," said Mr Maluf.

However, major new investments in the immediate future are unlikely, particularly in the face of the latest global economic crisis.

In the first half of 2011, Eucatex reported its recently launched Dieffenbacher T-HDF/MDF panel line in Salto maintained production at around 46% of its 350,000m3/year installed capacity.  The company announced profits up by 48% for Q2 of this year against the same period in 2010 to US$27m on net sales up nearly 15% at US$130m.