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INVESTMENT

Important investment was directed to increasing the production capacity of medium-density fiberboard panels (MDF) and the construction of a resin plant, which should lead to an important gain in scale and competitive advantages, in order to reinforce the company’s market leadership.
The work at the Agudos plant continued in 2008, to introduce a second MDF line at the unit, which is scheduled to begin operations in the first semester of 2009. The installed capacity will be increased by 2,400 cubic meters a day of MDF panels, which represents a growth of 125% in relation to the existing installed capacity of this product, providing considerable gains in scale. In the coating area, the increase in production was 36%, with the inauguration of a low-pressure coating line in the second half of the year. This line contributed to enriching the sales mix and the consequent increase in unitary net revenue by approximately 17% in relation to 2007.
A resin manufacturing unit is also being installed at the Agudos industrial site, which is scheduled to start up in 2010. This unit will produce formaldehydes and resins, which are raw materials for the production of MDF panels. As a result of the verticalization of this process, the company should increase its competitiveness, improve its logistics chain and lower its production costs to create value.

Duratex also plans to expand the capacity of its MDP unit. Due to the worsening in the economic scenario, the scheduled investment of approximately R$1 billion was postponed. This capital was earmarked for the installation of a new unit with an annual capacity of 1 million cubic meters, a low-pressure coating line and a resin plant, as well as land and plantations. However, all the feasibility and engineering studies have been maintained, which should accelerate the process when the scenario is more favorable.