BRAZIL - Construction materials manufacturer Duratex, owner of traditional brands such as Deca, Hydra, Portinari and Durafloor, announced an investment plan of BRL 2.5 billion (USD 488 million) for the period 2021 to 2025, aiming to expand its production capacity for wood panels, ceramic tiles and sanitary ware.

According to Duratex, most of the funds will be invested in the Deca division, which will receive BRL 1.1 billion. Next come the Ceramics division, with BRL 620 million, and Wood division,  with BRL 500 million.

Another BRL 100 million will be spent on the acquisition of a minority stake in construction materials retailer ABC. The plan also provides for an additional BRL 100 million for the formation of a fund aimed at the acquisition of startups.

“We are preparing for a new investment cycle. The objective is always to grow”, says the president of Duratex, Antonio Joaquim de Oliveira, in an interview with the newspaper O Estado de S.Paulo. “All our factories, in all divisions, are operating full. This is the most obvious sign that we need to increase capacity.”

In the Wood Division, BRL 90 million will be applied to increase panel production capacity by 10% by 2023; and BRL 180 million in three new panel coating lines, increasing capacity in coated products by 45%.

The company also announced a major change in its identity. From now on, it will be called DexCo. The idea is to create a name that lives up to the conglomerate the company has become, operating in various segments. The name Duratex, on the other hand, dates back to the company's founding, 70 years ago, and was confused with its line of wood products.