Votorantim in R$26bn investments spree

Votorantim in R$26bn investments spree
12 October 2007

Jose Roberto Erminio de Moraes head of Votorantim group, has confirmed to President Lula of Brazil a R$25.7bn investments plan from 2008-2012 in cement, metals, pulp and energy.

It is the largest investment spree from a private Brazilian company, with R$8.8bil scheduled for 2008. Votorantim group has been expanding 26% per annum and in 2006 posted an income of R$29bil with and EBITDA of R$8.1bn to double by 2010.

The cement business is to get R$2.1bbn but most investments (R$11.1bn) will go towards metals with plans to set up a R$1bn long steel plant at Resende (Rio de Janeiro); a nickel smelter at Montes Claros (Goias) is to absorb R$2bil; wood pulp is to absorb R$9.6bil at Tres Lagoas (Minas Gerais) (R$4.7bil) and Pelotas (Rio Grande do Sul ) (R$4.4bn). Votorantim is also investing R$2bbn to generate 1100MW of power from five hydroelectric utilities and secure 70% of the energy needs.

Among future plans Jose Roberto mentions the floating of capital and foster internationalisation despite operations abroad to account for only 10% of the overall income, a per cent to enlarge to 30% to 2011. International operations would center in cement - recently it acquired cement units in the US - and metals as zinc or nickel in the Americas.
Published under Cement News