As part of its risk management process,Duratex maintains a series of tools capable of identifying, standardising, evaluating and providing guidelines for contingency plans, or the elimination of factors that could adversely affect the Company’s results. Analysis of potential risks, in all the Company’s operations, is carried out by representatives of the various internal areas of the Company and follow the Principle of Precaution, established at the United Nations Conference for the Environment and Development. This document affirms that in the absence of formal scientific certainty, the organisation should adopt preventative measures capable of avoiding serious or irreversible damage to human health or the environment. To this end, the Company takes the ethical approach of adopting the best environmental and corporate governance practices

The results of the Company are directly related to the development of the building and furniture sectors, which in the domestic market operate in a highly competitive environment. To protect this dependency and minimise the actions of its competitors, Duratex bases its business on the quality of its products and the constant updating of its production lines, through the introduction of new panel patterns, and new collections of metal and vitreous chinaware bathroom fittings, with differentials in terms of design and operating characteristics. These guarantees the Company’s excellent position in its operational segments, as well as the respect and admiration of clients and consumers.

In order to mitigate the risk of unscheduled stoppages in its production plants, which can result in major losses in productivity, the Company carried out intensive preventive maintenance work on its machinery and equipment, as well as taking out insurance policies. The verification process is supported by management software and the concept of Total Productive Management (TPM) and 5S, which involve advanced management practices, and includes the carrying out of inspections, tests and evaluations of any operational aspect, with a view to ensuring that the level of efficiency and quality control is compatible with a level of acceptable risk. The merger between Duratex and Satipel also resulted in the rationalisation of the Group’s operations and considerable gains in scale, as well as investment in verticalisation in the Company’s processes, an example of this being the high self-sufficiency status in terms of wood supply.



The Company operates in competitive markets, and is therefore subject to the relationship between supply and demand in the setting of its prices. To set itself apart from its competitors, the Company seeks to give priority to those segments that carry a higher added value, with the launching of products and differentiated standards to keep it at the forefront of its segment. The Company also carries out training for sales clerks, carpenters and plumbers – professional staff to maintain direct contact with the end consumer of the Company’s products, and who are important opinion formers, as well as providing services such as technical assistance to the consumer.



Duratex adopts a conservative and rigorous policy in the management of its cash and financial investments. Its low leverage, together with its high cash generation potential, form a strong component in the reduction of risk associated with interest rates.

To reduce credit risks in its receivable accounts, the Company has adopted a strategy of spreading its sales thinly, with more than 28,000 active clients. The percentage participation by the 20 largest clients at the Wood and Deca Divisions of total sales in their respective areas in 2009, was 29% and 26%, respectively. In addition to this, the Company maintains a Credit Committee which sets credit limits for clients and defines measures to help prevent risks associated with sales.



In order to ensure the necessary supply of raw materials essential for its production processes, Duratex has a diversified supply base. In the Wood Division, for example, wood supply is assured by the Company’s land holdings where it develops a sustainable reforestry program.



In its industrial production and forestry processes, the Company follows the principles of eco-efficiency, increasingly reducing the use of raw materials and the impacts resulting from its operations. All environmental aspects involved in the Company’s processes and at the installations at its industrial plants are identified, recorded and managed. In the area of metal bathroom fittings, investment is made in filters and gas scrubbers with a view to reducing emissions into the atmosphere.

Updated on June, 2010