Saint-Gobain bets on new products to grow

With the building material market highly impacted by the slowdown of the economy, the French group Saint-Gobain has channelled a large part of the efforts to businesses with high growth potential, as plaster boards, for example, called drywall. "New materials will pull our performance in Brazil," said the company's President, DCI Benoit d ' Iribarne.
Only the drywall business of Saint-Gobain, material most used in commercial buildings and hotels for fast installation, should register growth of 15% in 2013.
"The whole world uses a lot of plaster board and, in Brazil, there is still plenty of room for this business evolve," says d ' Iribarne. At the end of last year, the Group announced investment of $ 125 million for the construction of a new factory of gypsum blocks in Feira de Santana (BA), keeping an eye on rising demand in the country. With the increase, the production capacity of the company's drywall must double to 40 million square meters.
And despite knowing the importance of markets in the North and Northeast, the Chairman of Saint-Gobain notes that the company will not prioritize just a region. "The idea is not to limit our performance and, Yes, supply the entire domestic market," says d ' Iribarne.
To this end, the Group intends to invest about $ 350 million annually to continue registering growth rates above the average for the sector. Second d ' Iribarne, the company must have an increment of 10% this year in the country, more than double the designed by the Brazilian Association of the industry of building materials (Abramat). According to the entity, the activity should grow 4 percent this year, compared to 2012.
In addition to strong annual investments, another group practice is to keep as much coverage as possible. "Our strategy is to be close to the customer," says d ' Iribarne. That's because the high cost of logistics in the country usually requires building material manufacturers operating in different manufacturing units. Currently, Saint-Gobain has 53 plants in Brazil for the various brands that holds. Two of the best known by consumers are Brasilit (tiles and water tanks) and Quartzolit (mortar).
The French company also bet on another little-known product in the country, the cimentitious Board, to strengthen their businesses. According to the Chairman of Saint-Gobain, this material replaces the finishing phase and 50% reduces construction time, factor that greatly impacts the costs of a work.
"The so-called dry construction system has a very competitive cost, without compromising thermal and acoustic insulation and finishing", ensures d ' Iribarne. He points out that the system is present in homes built by the program my house my life. And, although cost about 5% more than the conventional system, the Executive enforces that the costs will be largely compensated by the reduction of time of work and also of tailings.
While construction continues basis the growth of the company, the business of glass (through the company Verallia) of Saint-Gobain follows with a rock in my shoe, imports, mainly from China. "In the Asian country, there are more than 230 glassworks. It's a supercapacidade that they need to sell to the world at any price, "says d ' Iribarne.
The company has five factories in the country and glass to continue surviving, the industry already has applications in the Government to curb the increase in imports. "We have the matter of antidumping and hopefully enter into force soon. We had an invasion of China in the segment "d ' Iribarne.
The Chairman of Saint-Gobain's more optimistic about 2013. "The year of 2012 was very difficult. This should be a lot better, "said the Executive. However, the Brazilian economy skated since the middle of second quarter, primarily on inflation, on the ceiling of the target set by the Government, has reduced the purchasing power of the Brazilian. And the construction material industry is highly sensitive to income.
"We believe that inflation should improve a little more in the country," says d ' Iribarne. The Executive believes that the 2014 elections can help improve the domestic environment.
d ' Iribarne emphasizes that the company always works in the long run and the slowdown that the Brazilian economy goes through at the moment, will not be enough to stop the plans of Saint-Gobain. "The dynamics are a little slower than we would like. But we believe in long-term projects, "he says.
The Executive points out that some Government-controlled factors as the price of natural gas, important input for the French company-can undermine the industry in the country. "The Government needs to look at the unfair competition, there is still a lot to do around here. The Brazil has great growth potential, "he says.