Select one of the items in this chapter
STRATEGIC MANAGEMENT
Included in this commitment, the company’s strategic management increasingly invests in the quality and diversification of its products, mainly of higher aggregate value, as well as continuously improving the efficiency of its production processes. To achieve these objectives, the company has adopted the following differentials:
CAPITAL EXPENDITURES
The capex made in 2008, and as scheduled in the plan announced at the end of 2007, totaled R$673.4 million, equivalent to approximately three times the amount invested in the previous year (R$222.3 million). Part of the scheduled Plan for the Application of Resources (PAR) was realigned due to the worsening in the international crisis and related uncertainties. As a result, the intention is to preserve the company’s financial health in the event of a deceleration in the economy. As such, approximately R$450 million of the originally planned investment was postponed until the end of 2009, from the total capital expenditure program of R$1.0 billion.
- Construction of a building to house the new manufacturing line for MDF panels and the acquisition and start-up of the equipment assemblying works, which should lead to an increase in capacity to 800,000 cubic meters per year in the first half of 2009;
- Acquisition of land and forestry to provide the raw materials for existing plants and meet the demands related to the expansion in MDF capacity;
- Finalization of the setting up and start up of the new low-pressure coating line (BP);
- Order of equipment for the resin plant to be built in Agudos.
Investment in the Deca Division, which totaled R$143.8 million, was spent on:
- The acquisition of the vitreous china operations of Cerâmica Monte Carlo and Ideal Standard do Brasil;
- Expansion in metal bathroom fittings in the industrial district of Jundiaí (SP).
The difference in volume refers to investment in the corporate area, mainly in an integrated management system (SAP). This project was divided into two stages, the first of which was successfully implemented on January 5, 2009, and the second is scheduled to be operational in July 2009.
Technology: Constant investment in the modernization of equipment and the manufacturing park to increase the efficiency and profitability of their scales of production. At the plants, the company has introduced sophisticated robotic cells and other modern components to improve the flexibility of its production lines, increase productivity and guarantee high standards of product quality. To achieve this, the company offers employee training with the new technology, valuing the individual. In the administrative area, the process of adopting an Integrated Management System (SAP) was maintained in 2008, with the aim of providing more security in the execution of all operating stages and more dynamic decision making.
Cost management: The verticalization of the production process is one of Duratex’s main differentials in guaranteeing high levels of productivity with low operating costs. The highlights are related to the wood supply from the company’s own land and renewable plantations. The investment to expand capacity was accompanied by an increase in the forestry area, in order to preserve this important competitive advantage. Finishing lines provide a higher added value to the sales mix of panels and, therefore, its increased profitability. During the third quarter of 2009, the company will take another important step in the direction of integrating further its operations aiming cost reduction possibilities, by implementing a resin plant that will fulfill the entire needs for such raw material used in the production process of MDF panels. The usage of biomass as an energy source is another example of cost reduction measures taken by the company. In 2008, the usage of such energy source represented 57% of the company’s energy matrix.
Innovation: LThe market leader in the wood panels and metal bathroom fittings segments, Duratex has a qualified and experienced team of employees to research, plan, produce and sell its vanguard products, aligned with international market trends. A total of 63 products and different standards in the wood division were launched in 2008, as well as the Duratex Moulding line, with 9 products, and 19 new lines of products at the Deca Division. The continuous launch of new product lines allows the company to constantly renew its lines, keeping them updated and, as a result, making them a market benchmark.
Quality: Duratex offers its consumers products of an extremely high quality; a sales force of well-prepared professionals ready to provide advice regarding the best items to be acquired; a nationwide network of technical assistance; and a quick and efficient customer service channel, reinforcing the credibility of its brands.
Eco-efficiency: The corporate directive is to invest in technologies and equipment that optimizes the use of natural resources and reduces the impact on the environment, particularly in terms of the consumption of energy and water. Duratex constantly tries to use recyclable materials, such as sawdust, trimmings, metalic residues and plastic, among others. The forestry operation invests in genetic technology as a means to improve its productivity indicators. All planted trees are cloned, which translates in less pesticide and hydric needs. The industrialized panels itself are environment friendly, since the wood used in its industrial process comes from reforestation activities, from certified areas, and compete with natural wood from extractivism activity. Within the metal and ceramic ware segment, there are a series of water saving products and devices, which are also specified to be used in constructions that follows sustainability standards.