How Flavio Maluf Used Environmentally Friendly Development To Bring Eucatex to the Forefront

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Eucatex South America Indústria e Comércio was founded in 1951. Over the years Eucatex has evolved into one of the largest building materials manufacturers in all of the South American continent.

 

Flávio Maluf is the Executive President of Eucatex, a position Mr. Maluf has held since 2005. Mr. Maluf has been in business for all of his working life, though he started off as an engineer after earning a college degree at FAAP, the Amando Alvares Penteado Foundation, a private school in São Paulo, São Paulo, Brazil that is unarguably one of the most popular in the entire state of SP. The school currently has about 12,000 students under its academic belt.

 

While mergers and acquisitions have varied in popularity throughout time, businesses have time and time again used them to expand their operations, swap rights to do things and assets with other companies to increase the chances of success within both organizations, and become larger to beat out competition.

CEO Flavio Maluf

Eucatex has also been involved in an acquisition of another company’s assets, which happened recently, at that. Per a press release sent out by Eucatex and its Executive President Flávio Maluf during the evening hours of January 31, 2018, the pair announced that it had traded a farm in Capão Bonito under its own ownership for a manufacturing operation in Botucatu.

 

According to private valuations of the business operations of Duratex, the plant and its contents are worth roughly R$60 million, with the farm that Eucatex put forward in exchange worth approximately the same.

 

Eucatex had used the farm as a means of creating raw materials that the company could use in its manufacturing of several building products; it grew eucalyptus trees that were cut down for utilization, as the company would beat the trees into pulp, then use the pulp to create fiberboard and other products.

 

Botucatu’s operation takes about 280 employees to run as usual. It is not immediately clear if Eucatex will retain those employees, or hire their own. That plant produces roughly 200,000 cuber meters of wood sheets that are used for construction in a year’s time.

 

Now that Duratex has that farm, it will use the eucalyptus pulp that it yields in its own production facilities. Although the company did trade off its manufacturing plant in Botucatu, Duratex has another production facility in Itapetinga. The Itapetinga plant of Duratex hasn’t been used in some time – at least before the re-integration took place – although the company stated that it christened in a new round of business at the plant using the inputs that came from the farm that used to be owned by Flávio Maluf and Eucatex.

 

According to that same press release from none other than head cheese himself, Flávio Maluf, the production ceilings for “fiber sheets” would be raised by 70 percent, in terms of what Eucatex currently produces throughout the entirety of its manufacturing operations, alongside paint product increases of about 30 percent, and, finally, a respectable margin of increase for operations related to paper printing of roughly 40 percent.

 

Mr. Maluf also shared that because the transaction of trading assets between the two companies was relevant compared to the market the pair of companies operated in, as well as when considering the entirety of the Brazilian economy, it would have to be approved by CADE, better known as the Administrative Council for Economic Defense, an agency operated by the federal government of Brazil. CADE is responsible for seeing if the transaction could violate any antitrust laws, or make Eucatex so big that it wouldn’t have any, or at least not enough, substantial competitors, making the consumers of Brazil have a difficult time sourcing quality products for a reasonable cost.

 

Flávio Maluf’s letter, meant to inform the curious news media, its own employee base, and the roster of Duratex about what was going on between the two companies, also said that the number of product opportunitis that Eucatex would have on its proverbial plate of offerings would undeniably raise as a result of trading its farm for the production capabilities of Duratex, jobs directly related to manufacturing the products that the plant puts out would raise, occupations indicrectly created by the influx of jobs to Eucatex as a result of it buying out the assets that Duratex had to offer, and that the overall output of all the products Eucatex put out would reach not only more stores in Brazil, but across the world.

 

It’s known that Brazil’s very own Eucatex did very well in recent financial reports for the fourth fiscal quarter of 2017, bringing in revenues of R$318.3 and net earnings of R$18.6, both figures of which are expressed in millions of Brazilian Reals.

About CEO Flávio Maluf

 

Flávio Maluf first started working for Eucatex in 2005, getting handed down the reigns of the sought-after position of Executive President from his older family members. Mr. Maluf hasn’t stepped down from the spot of Executive President since he joined the company in the capacity more than a decade ago.

 

Mr. Maluf has said in public that he thinks there is no reason whatsoever to believe that Brazil’s federal government agency CADE would shut the transaction down.

Follow Flavio on Twitter @Flavio_Maluf

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