BRAZIL – The volume shipped by the Duratex Wood Division in the first quarter of 2014 showed a year-to-year increase of 3.3% contributing to an increase in net revenue to R$584.0 million, or a 5,4% growth YoY.

Compared to the immediately preceding quarter, revenue was down by 13.5%, due to the drop in sales as a result of the seasonal nature of the business, and the lower pricing base in the Wood Panel segment. According to figures for the sector, released by the Brazilian Panel Industry Association (Abipa), domestic demand for wood panels increased by 2.1% when compared to the same period in 2013, while Duratex’s sales dropped by 2.2%, not including the sales from the Colombian operation (Tablemac). 

In 2013, important investments were concluded, which are now operational and should contribute to putting the Company in a better position in the market. At the beginning of September 2013 the first commercial MDF boards was shipped from the new plant in Itapetininga (SP), which has an annual production capacity of 520.000 m³. Additionally, investment was completed in the unit at Taquari (RS).

On January 22, 2014, Duratex informed the market of the result of its Public Share Offering to acquire shares in Tablemac S.A., for approximately R$152.0 million, through which it acquired 14,772,002,647 shares in addition to those it previously held. Thus, Duratex’s stake in that company was increased from the original 37 % to 80.62 %.

Also on March 13 Duratex informed of its intention to carry out consecutive investment in two new panel plants (MDF and MDP), each with an individual production capacity of 700 K m3 a year, in Minas Gerais. According to the announcement, which cites an investment of R$1.3 billion between 2015 and 2018, these units are to be built within the Nova Monte Carmelo area, which will reduce the cost of wood supply.