Paranapanema, the largest supplier of copper tubes in South America, inaugurated yesterday its seamless tube factory in Santo André (SP) with investments of R$ 150 million. The new unit has replaced the older production line, which operated in the same municipality, and it will double the capacity of the company in this segment to 36 thousand tons per year. The company has planned more investments.
Paranapanema expansion plan predicts expenses of R$ 1.2 billion between 2009 and 2015 . According to the interim president of the company, Edson Monteiro, R$ 550 million of the established total has already been spent.
The next steps will be to complete the modernization of Dias D’Ávila factory, in Bahia, as well as the modernization of the rolling mill factory installed next to the new plant, with an investment originally estimated at R$ 300 million.
“We have been reviewing the project and our expectation is to execute it still in 2014”, Monteiro stated. “The inauguration today [yesterday] represents a paradigm breaking and it reflects the company’s effort to modernize its lines which have a technological operational gap”, he added.
In Dias D’Ávila, Paranapanema has implanted the permanent cathode technology, which enabled the increase in electrolytic copper production to 280 thousand tons per year.
According to Monteiro, of R$ 150 million invested in the new seamless tube plant, primarily used in refrigeration and air-conditioning, 70% correspond to resources from Banco Nacional de Desenvolvimento Economico e Social (BNDES) (National Bank for Economic and Social Development). The remaining part refers to its own resources.
The expectation, according to the interim president, is to achieve the production peak at the new plant within at most 10 months. “Let’s search the market for such production, but we will also have exportation”, the executive stated.
According to Monteiro, Paranapanema has tried to get a new position in the market and it has introduced itself as “a vanguard company with management transparency”. In the first half, the company’s net revenue totaled R$ 2.56 billion, up to 38% year on year.
Edson Monteiro’s Speech
His Excellency Chairman of the Board of Directors, Valmir Camilo, on behalf of whom I greet all the other directors and shareholders, my peers in the Executive Board,
Messrs Employees, members of the press and other authorities present here,
It is a great pleasure to be here today to inaugurate the new Copper Tubes Paranapanema Factory in Santo André. The Company has spared no effort in bringing to ABC this Cast & Roll, planetary rolling mill, the most advanced technology in the market related to the manufacture of seamless copper tubes.
The new unit, which included investments of R$ 150 million, will allow us to double the production capacity of copper tubes, to 36 thousand tons per year. This plant brings significant gains to the Company in terms of production scale, quality and productivity, and for the region, due to the innovation and modernization of the industrial park, which will allow the company to operate in new extremely demanding and competitive markets, for example, in air conditioning and refrigeration sectors.
Paranapanema now has the most modern plant of seamless copper tubes in Brazil, using leading edge technology as well as the best structure and dimensional quality. I could not fail to highlight the project sustainable and environmental initiatives, such as the reuse of rainwater, oil segregation, recycling and reduction in pollutant emissions , aspects which are present in Paranapanema’s daily routine, in all working fields, for reuse of natural resources and improvement of our planet.
Utinga and Capuava Units, which have been installed in Santo André for over 65 years, are part of Santo André and ABC Paulista history besides promoting income generation and employment in the State. Nowadays, the company employs 1380 direct employees and 300 contractors in Santo André.
In addition to its production capacity, the Company promotes social inclusion in communities near their units and generates opportunities for young professionals in the surrounding area. In Santo André, for example, it invests in training with the Young Apprentice Project, aimed at the generation of new talents, the first job that encourages and prepares young people for the labor market by offering technical training appropriate to their development.
One of the most important pillars for the recovery of the domestic industry and of our Company is innovation. Paranapanema focus on technological innovation to develop the Brazilian copper market. In partnership with USP Polytechnic School and the Institute of Technological Research (IPT) we have worked in researches to find new applications and processes for the copper market. Initiatives like these ones keeps Paranapanema at the forefront of Brazilian industry besides increasing our competitiveness both in domestic market and in the international one.
Over the past two years, with the indispensable support of shareholders, Paranapanema has undergone deep changes, consolidating itself as a financially strong and stable company, increasingly recognized for its quality products and transparency in management. Since February 2012 the company has been listed in the New Market of the BM & F Bovespa, with the highest standards for corporate governance.
Aiming at consolidating its leadership in the copper segment in Brazil, the Directors of Paranapanema implemented the “New Paranapanema” project last year which was based on the restructuring of its business done in recent years and, more recently, the strengthening of its management, implementing a comprehensive Strategic Realignment Program, with strong investments in the expansion and modernization of its factories.
This expansion plan and investment has already reached R$ 1.2 billion and it will be completed by 2015. It includes, besides the new tube factory in Santo André, modernization of Dias D’Ávila Unit, in Bahia, whose first stage was completed last August, with the implantation of permanent cathode technology, process automation, increasing our annual production capacity of electrolytic copper to 280 thousand tonnes per year.
This Company’s expansion plan also includes other important projects such as the completion of the modernization of electrolysis to 100% conversion to the new permanent cathode technology, the modernization of the sulphuric acid plant; the development of precious metal plant and the modernization of rolling mill plant in Santo André.
All these initiatives are part of Paranapanema’s strategy to raise technological and productivity levels of the copper chain in Brazil, when offering products with higher added value and high quality.
We emphasize that Paranapanema is there to create value for its shareholders and their related parties. To do so, we try to add value through both tangible assets and intangible ones, focusing increasingly on human capital and its technical capacity to innovate, create wealth and develop corporate responsibility, both in the economic-financial aspects and socio-environmental ones.
The great advantage of this company is the talent of its employees and their commitment with the business results and objectives.
Paranapanema is now the largest refined copper producer in Brazil and it is among the 100 largest Brazilian companies. The copper produced by the Company is registered in London Metal Exchange and in Shanghai Metal Exchange as well being traded anywhere in the world. These points demonstrate the relevance of the Company in the domestic and international market. With the inauguration of this new Tube Factory, Paranapanema strengthens its role in the Brazilian market and the commitment to the country’s development.
I thank the shareholders, São Paulo’s government, Santo André’s cityhall and the advisers for all the support received and for participating in this important moment of Paranapanema in Brazil.
I would like to end by thanking our employees, who contribute to build the success of our business, and workmates at the Board of Directors, who share all the decisions that guide the paths of this Company with me.
Thank you very much!
Source: Valor Econômico