New Eucatex production facility begins test runs

Brazil (Notifix).- Eucatex S.A. a leading manufacturer of products for the construction and furniture industries, began the test run phase of its new factory in Salto, state of Sao Paulo. The site, that received investments for R$ 265 million will have a production capacity of 275 000 m³/year of T-HDF/MDF panels. In September test runs for the equipment and personnel training began. In November production of commercial products will start and the by the fourth quarter the company expects a positive impact on the company's financials. Technology for T-HDF panel manufacture was developed for applications where high mechanical resistance is required, such as flooring, doors, division and panels for the furniture industry. With this new product line Eucatex, an established supplier in Brazil and external markets of panels for the furniture industry and others, expects significant growth in the markets where it already is active. When full capacity is reached, the company expects a US$ 250 million increase in sales and a positive US$ 80 million cash flow effect.

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