Votorantim expands abroad

Votorantim expands abroad
26 May 2004

The cement division of the Brazilian Votorantim, Votorantim Cimentos may increase the investments in the US and Canada to US$1.8bn until 2007, intending to double turnover in comparison to US$342m in 2003.

The company plans to invest the profit made in Brazilian operations. Votorantim Cimentos has acquired the US S&W Materials (Florida). Sixty per cent of the group´s income come from exports. Most of investments will be directed at the expansion of production in the US and Canada from 3.5Mt to 7Mta. The company also predicts acquisitions in Europe and India.

Votorantim’s division plans to expand in the service segment, which turned over US$1.25bn last year. Domestic consumption had a two per cent fall in Jan-Apr 2004 over the same period in 2003. The group, which owns a 40 per cent share in the Brazilian market, dedicated US$50m investments to technology and services last year. The US S&W produces 360,000m3 of concrete and owns a 14% market share in Florida.

Votorantim expects that the company will make 1Mm3 and own a 25 per cent market share, taking advantage of the partnership with Suwanee, which is a joint venture between Anderson Columbia and Votorantim and produces 850,000Mta of cement.

Published under Cement News