Eternit Plans to Build Two New Fiber Cement Roofing Factories in the North and Northeast of the Country

Further Expanding Its Fiber Cement Tile Production, Eternit Will Propose the Construction of Two Factories in the North and Northeast of the Country. The Expectation Is That 14 Thousand Tons Will Be Produced Annually in the New Units

Eternit will present to its board of directors a proposal 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 may further increase the installed capacity by 20% and will begin operations 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 start dates expected for 2024.

See Also

• Eternit Acquires Factory in SP for R$110 Million from Its Tile Industry Competitor Confibra
• Eternit Starts Mass Production of Solar Tiles to Sell in the Brazilian Renewable Market
• Solar Tile Can Generate Over R$300 in Savings on Brazilians’ Energy Bills
• Eternit’s Solar Tiles Are 20% Cheaper Than Solar Panels
• Eternit’s Solar Energy Tile Approved by Inmetro and Can Now Be Sold in Brazil

Eternit Will Expand Production at Factories in Rio de Janeiro and Goiânia

Together, the two new factories and Confibra, acquired this year, will allow for a 50% increase in the company’s capacity. According to Eternit’s president, Luís Augusto Barbosa, there is a pent-up demand in the North and Northeast due to a lack of supply. In the Southeast and South, the growth will come from purchases of fiber cement tiles.

The company expects to complete the acquisition 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 factories in Rio de Janeiro and Goiânia, with completion scheduled for the fourth quarter of this year and the first quarter of next year, respectively.

Sales of Fiber Cement Tiles Increase by 26%

In the second quarter of this year, sales of fiber cement tiles grew by 26% year-on-year, reaching 179 thousand tons. Net revenue rose by 106.4%, reaching R$ 287.3 million. All fiber production is aimed at the foreign market. The company recorded a 375.1% increase, 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 passing on of cost increases for materials and labor to the prices charged, among other factors, said Barbosa. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) achieved an expansion of 224.9%, equivalent to R$ 88.78 million. General and administrative expenses grew by 26%.

President Comments on Positive Sales

Barbosa emphasizes that the company has had a string of very positive quarters and that the measures used to combat the impacts of the pandemic have benefited the construction industry.

Even with the reduction of emergency aid, Eternit achieved a much better first quarter than expected, and in the second quarter, positivity persisted. According to the executive, the company is now reaping the fruits of a well-executed restructuring effort with excellent market opportunities. Estimates for the second half of the year remain positive, according to Barbosa.

There are no signs of a downturn in the sector, and the company will continue to have a very good year, especially with the progress of vaccination and economic growth. In addition to these factors, Eternit plans to begin sales of its concrete photovoltaic tiles this month to selected customers.