Votorantim Cimentos announces a new investment package which will see BRL5bn (US$1.6bn) invested in five new factories in Brazil, one in Turkey and one in Bolivia, as well as in the expansion and modernisation of existing units in the 2015-18 period. The announcement comes after the company's 2007-14 BRL10bn investment plan through which the company expanded its global production capacity by 51 per cent.
In Brazil, the priority is to increase production in the central-north and northeast regions. The company, which follows a strong long-term strategy, identifies growth potential in the construction sector and in cement consumption in these regions.
Two of the new cement factories will start operations in 2015: one in Edealina, Goiás, and another in Primavera, Pará. In the second phase, the construction of two plants in the State of Ceará is planned, in the cities of Sobral and Pecém, and one in the State of Paraíba, in the city of Caaporã. Start up of the three new units is scheduled for 2H17.
With its new factories, Votorantim Cimentos will increase its cement production capacity in Brazil by 18 per cent, adding about 6Mta to the current capacity of 32Mta.
The investments are in line with the company's preparation for a new cycle of growth in the country. "We are concentrating investments in attractive and profitable markets, always with a long-term vision and thinking of the future market demand," says Walter Dissinger, Votorantim Cimentos' CEO.
In the Americas and Europe, investments include one cement factory in Bolivia, located in Yacuses, in partnership with two other companies, and one new plant in Turkey. The company is also evaluating the construction of a new factory in Morocco. In the United States, where Votorantim Cimentos has assets in the Great Lakes region, there is a project for the expansion of the Charlevoix Unit, Michigan. "The American market is recovering and is also attractive", Mr Dissinger added.
The new projects outside of Brazil will add 2.5Mta to the company's installed capacity. "We prepared ourselves to confront a challenging scenario in Brazil and follow our policy of thinking in the long term. Our discipline and financial solidity allows us to keep investing to be ready for the recovery of the markets", concludes the CEO.
