Eucatex and Duratex are merging to exchange manufacturing assets at BRR 60 million. The two leading manufacturers of construction products have since told the public that they have a binding proposal that allows them to deal.
In the contract, Duratex is set to receive land as well as forest assets from Eucatex. The issuer of these assets is geographically situated in Capao Bonito, which is strategically closer to one unit from Itapetininga. Apparently, the business deal has revived the operation of Itapetininga Plant, which belongs to Duratex.
Assets Being Exchanged
Eucatex Group will have manufacturing facilities that specialize in fiberboard sheets from Duratex. According to the management, the Botucatu facility in Sao Paulo is well equipped with manufacturing resources. At the same time, the strategic acquisition of the manufacturing facility allows Eucatex to leverage most of its forest assets. Well, the transaction evaded the MDF panel line found at Botucatu. Moreover, the wood supply to the new production unit will emerge from exclusive third party stakeholders including the suppliers of Duratex.
Benefits of Merging
Other than that, Duratex and Eucatex have agreed on the terms of their businesses. The duo has informed their employees of the impending exchange and they are all prepared for the impending change. Even more, the partnership has without a doubt provided employment opportunities to several job seekers within the community. In the words of Flavio Maluf the head of Eucatex the acquisition will increase the production capacity of the company by 70%. He also revealed that paper printing rates would heighten to supply the growing demand of manufacturing materials. Moreover, the partnership will strengthen the visibility of Eucatex in the industry.
Describing Flavio Maluf
Flavio Maluf is the head cheerleader of Eucatex. He has been serving as the chief executive officer of the company for more than ten years. In his capacity as the team leader, he streamlines the entire operations of the company and oversees finance allocation. Other than that, he facilitates partnerships just like in the case of Duratex and Eucatex. Aside from that, Maluf ensures that the company provides top-notch services to its clients.