Further expanding its production of fiber cement tiles, Eternit will make a proposal for the construction of two factories in the North and Northeast of the country. The expectation is that 14 thousand tons per year will be produced in the new units
Eternit will present a proposal to its board of directors for the construction of two fiber cement tile factories. The proposal will be made by October and the units will be built in the North or Northeast of the country, with a capacity to produce 14 thousand tons. One of the factories will be able to expand its installed capacity by 20% and will start operating in the first quarter of 2023. Soon after, Eternit will also seek approval for the other unit, also in the North or Northeast, but with production scheduled to start in 2024.
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Eternit will expand production at factories in Rio de Janeiro and Goiânia
Together, the two new factories and Confibra, acquired this year, will enable a 50% increase in the company's capacity. According to the president of Eternit, Luís Augusto Barbosa, there is a repressed demand in the north and northeast due to lack of supply. In the Southeast and South, the growth will come from purchases of fiber cement tiles.
The company expects to complete the purchase of Confibra in the coming weeks. In addition to the construction of new fiber cement tile factories in the North and Northeast, the company is also expanding the factory in Rio de Janeiro and Goiânia, with conclusion expected for the fourth quarter of this year and the first quarter of next year, respectively.
Sales of fiber cement tiles grow by 26%
In the second quarter of this year, sales of fiber cement tiles grew by 26%, in the annual comparison, to 179 thousand tons. Net revenue, on the other hand, increased by 106,4%, reaching R$ 287,3 million. All fiber production is turned to the foreign market. The company registered an increase of 375,1%, equivalent to a profit of R$ 59,7 million.
Eternit's gross margin rose from 20% in the second quarter of last year to 46% in the second quarter of this year. In the first quarter, the figure was 45%.
The improvement compared to last year is due to the pass-through of increases in material costs and labor to prices practiced, among other factors, said Barbosa. Ebitda (Earnings before interest, taxes, depreciation and amortization) reached an expansion of 224,9%, equivalent to R$ 88,78 million. General and administrative expenses grew by 26%.
President comments on positive sales
Barbosa points out that the company had a very positive sequence of quarters and that the measures used to combat the impacts of the pandemic benefited civil construction.
Even with the reduction in emergency aid, Eternit managed a much better first quarter than expected and in the second, positivity persisted. According to the executive, the company is now reaping the fruits of a well-done restructuring job with great market opportunities. Estimates for the second half remain positive, according to Barbosa.
There is no sign of a decline in the sector and the company will continue to have a very good year, especially with the advancement of vaccination and the growth of the economy. In addition to these factors, Eternit plans to start selling its concrete photovoltaic tiles later this month, to selected customers.
