BRAZIL - On September 18 Duratex S.A. announced to its shareholders and the general market the closure of the wood panel production unit of Botucatu, whose MDF production line with an annual capacity of 400,000 m3 has been suspended since November 2018.
At the same time the Company announced that it had reached an agreement with Turvinho Participações Ltda. and Bracell SP Celulose Ltda. for the sale of rural properties, forest assets and assignment of rural partnerships, located in the central region of the state of São Paulo.
Both operations, the sale of assets and the closure of the Botucatu plant, will lead the Company to recognize extraordinary net income of around BRL 230 million, with cash impact of approximately BRL 450 million.
Duratex emphasized that the closure of the Botucatu unit will not affect product supply as the Wood Division will serve the market from the installed capacity in the other units, thus preserving its leadership position.
This operation reinforces the Duratex strategy of focusing on operations with higher productivity and efficiency, better use of capital, as well as its commitment to its shareholders to prioritize its profitability and to prepare the Company for future challenges.
The conclusion of the Sale and Purchase Commitments is subject to certain customary conditions for this type of transaction, including approval by the Administrative Council for Economic Defense - CADE.
