Companhia Providencia adds 20,000t nonwoven capacity

By Tara Hounsle Mon Jul 16 2012, 12:06 PM

Companhia Providencia is increasing its nonwoven capacity in Brazil with the addition of a second plant in Pouso Alegre, Minas Gerais. The plant, which will produce nonwovens mainly for the hygienic disposable and medical domestic markets, will produce around 20,000 tons per year.
The company said this investment, in the region of $63m, was a way of strengthening its operations in South America.
“By the end of 2012 the region will account for more than 70% of the company’s production capacity,” said CEO Herminio de Freitas.
He said that the nonwovens industry has grown on average of 10% per year over the last five years in Brazil, compared with average growth of less than 5% of the Brazilian economy during the same period.
“We chose Pouso Alegre, because it is a place where logistics is privileged to receive raw materials and faster service for our customers,” he explained. “In addition to the experience already working in the region, we can also rely on local labour experienced in nonwovens.”
The company now has 62 employees in the region and the new plant will create over 30 direct jobs.
Last year, Companhia Providencia opened its first factory outside Brazil, in North Carolina, USA, in an investment of around $80m. The facilities housed the company’s eleventh production line. This year, the company has expanded production in the country to 40,000 tons/year. The first line has achieved record production while operating fully.
Later this year, the company will reach full production capacity of 140,000 tons/year, an increase of 40% compared with the end of 2011.



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