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Sales in the Brazilian composites sector grew 5.5% in the second quarter

News International-French

19 Aug 2013

Despite the positive result, president of ALMACO highlights the decline in profit margins

The Brazilian composites sector reported US$ 403 million in sales in the second quarter, which corresponds to a 5.5% increase in comparison with the first three months of the year and 9.9% higher than in the same period of the previous year. Approximately 54,600 tons of raw materials were processed between April and June, which is 5.4% higher than that registered in the sum of the three previous months – when compared to the second quarter of 2012, there was a 3.9% increase. The data are from Maxiquim, a consulting firm hired by the Latin American Composite Materials Association (ALMACO).

For Gilmar Lima, president of ALMACO, the improvement in the composites market indicators is mainly due to the increase in demand arising from three areas: agribusiness, largely represented by manufacturers of tractors, wind energy generation and transportation, with special mention to manufacturers of trucks.

The production chain of the material, however, has suffered from the successive decline in profit margins. “We absorb a series of adjustments in the key inputs, as well as in services and in the cost to raise funds for working capital and investments. And unfortunately, the speed to transfer to large consumers is slow, bureaucratic and very difficult,” he says.

Therefore, Lima carefully assesses the prospects presented by Maxiquim’s survey. According to the survey, the Brazilian composites market revenue should total US$ 1.632 billion in 2013, that is, 9.4% higher than in the previous year. “Obtaining this result depends on the pace of government investments in construction, infrastructure and urban mobility. In addition, we will continue to have difficulties to transfer the new increases. Therefore, our industry must give priority to management and innovation, in addition to being more careful when choosing markets, products and processes on which it wishes to continue investing”.

Photo: Gilmar Lima, president of ALMACO