BRAZIL - The recovery of the Brazilian economy became evident with the decision of Duratex to resume its Itapetininga operation. In 2015, the largest Brazilian company in the sector decided to temporarily suspend the production of MDF and MDP at this plant due to the slowdown in the construction and furniture sectors.

Now, in view of the increase in sales in the internal and external markets, Duratex decided to re-start production in the Group's most modern plant, which also has the ability to flexibly alternate the production of MDF and MDP panels.

“Duratex's Madera business unit is strategic for the company. The resumption of Itapetininga shows that we managed to overcome an adverse scenario that has affected the market for three years," said Henrique Marcondes, vice president of the Wood business unit.

Itapetininga, located in the interior of São Paulo, will initially operate at around 50% of its production capacity. The total resumption of operations will depend on market demand. It is important to note that the company prioritized the re-hiring of former employees in this resumption process. In December 2017 the unit began the selection process and about 90% of the former employees were rehired.

“Our expectations for 2018 with the resumption of the Itapetininga unit are to increase the competitiveness of the company, the logistical flexibility and the attention to our local clients. We also intend to continue with the generation of jobs and further promote regional growth," adds Marcondes.

Duratex S.A. is a Brazilian privately owned company, controlled by Itaúsa - Investimentos Itaú S.A - and by Ligna de Investimentos. With the Deca, Hydra, Duratex, Durafloor and Ceusa brands, it is considered one of the 10 largest companies in the world in the sectors in which it operates and the largest producer of industrialized wood panels and floors, and sanitary ware, chinaware in the Southern Hemisphere. Headquartered in São Paulo, it has 24 industrial and forestry units in Brazil, as well as three panel factories in Colombia (Duratex Colombia). Duratex also owns Caetex, a joint venture established for the planting of eucalyptus forests in Alagoas.