Over the last decade, the wood panel business has continued to stimulate asset class for several emerging investors. Similarly, forest transactions are gaining foothold in the ever-transitioning wood processing sector. Coupled with a provoking trend of several discount rates in this business, companies have decided to partner in order to leverage a broad spectrum of products and services to several clients. In the case of Duratex partnering with Eucatex, two factors are involved;
- Duratex is giving out one of its manufacturing plants to Eucatex
- Eucatex is giving out its forest asset to Duretex
Details of Acquisition
Duratex is planning to retain the farm in order to boost its production capacity for raw materials. Similarly, Eucatex is planning to supply these materials within the agreed time. Valued at R $60 million, the business will provide new employment opportunities for the people of Brazil. Other than that, the plant will have additional production responsibilities. Nevertheless, employees have been prepared for the impending changes. Learn more at mundodomarketing.com about Flavio Maluf
Leadership in Eucatex
According to Flavio Maluf, the chief executive officer of Eucatex, the facility at Itapetinga will resume its operations in order to accommodate the needs of Eucatex. With about 250 employees on board, the project will definitely be successful. Moreover, the partnership will increase Eucatex’s production capacity of fibreboard by 70%. Similarly, the paint production capacity will increase by 30% while paper printing will increase by 40%. On the same note, Maluf stated that the acquisition will be approved by CADE.
Advantages of the Partnership to Eucatex
Maluf revealed that the partnership will help to better the sales of the company while reducing loss at the same time. Moreover, the company shall strengthen its presence in foreign markets. While the acquisition may be a few steps away from the approval of officials, it is clear that the business is legal and that the approval will occur. Regarding the waiting period, Maluf says that the management will capture the approval synergies. While drawing conclusions on the intended purpose of the project, Maluf stated that the business will create direct as well as indirect job opportunities. As a business leader, Maluf strives to mentor emerging business professionals thanks to his vast skills in business.