BRAZIL – On March 13th Duratex SA announced an investment of R$ 1.3 billion for the construction of the largest board factory in Latin America. The factory is strategically located in the state of Minas Gerais, in the Mineiro Triangle and will have two production lines,  MDP and MDF, with a total installed capacity 1.4 million m3 per year. With this investment Duratex will expand its total panels production capacity to 5.6 million m3 per year, a 34% increase.

The installation of the new MDP and MDF production lines will be done consecutively in order to start operations in the second half of 2016 and 2017 respectively. With it the company expects a significant reduction in operating costs in what will be the largest production unit of composite wood Latin America.

Duratex explained in a notice to the market that it made this investment decision to meet the needs of a board market that grows steadily at a higher pace than the growth of the economy. With it the company is preparing to meet the supply deficit expected in 2017.

To ensure 100% supply of the raw material and low wood and freight costs, Duratex acquired 21,000 hectares of pine and eucalyptus forests, strategically located between the new unit and the company’s panel factory in Uberaba (MG).

The new unit will be built in the 52 hectares of the New Mount Carmel property of Duratex, of which 38 hectares are planted with eucalyptus. Each production line, with capacity to produce 700,000 m3/year is individually the world’s longest continuous panel production line. The factory, which provides for possible expansions, includes an impregnating line and press lines. The project will generate 450 direct jobs and will be financed with own resources and loans from BNDES.