Brazil: Votorantim expands cement distribution

Brazil: Votorantim expands cement distribution
Published: 30 June 2008

Votorantim Cimentos, engaged in a BRL$2bil cement capacity expansion investment to add 8Mta by 2010, is also looking to expand and modernise its distribution ring in Brazil.

Plans include 10 new distribution centers until mid 2009 investing BRL$50m; in 2007 it has set up 10 units and other five so far in 2008, the last facility just dedicated at Campinas (Sao Paulo) with investments of BRL$6m. Since mid 2007 Votorantim has added 2Mta to its capacity of 25Mta and logistics market Fred Jose Fernandes says capillarity is key to meet the national demand growing at rates of 10% per annum and also to curb freight costs.

Until 2010 Votorantim is to have 12 units between new projects, expansion and revamping of other plants, adding 8Mt, with an eye in a 12% increase in the cement consumption in 2008 to 50Mt. In 2007 it has sold 17Mt of cement.