MWV Rigesa sells factory in Bahia and review business in the country

The MWV Rigesa, second largest producer of corrugated packaging, restructured its operations in order to remain on a growth. At the same time that fell apart a factory in Bahia, non-market would provide the appropriate economic support to your strategic planning, the Brazilian unit of u.s.-based MeadWestvaco Group reaffirmed plans to expand in 50% the volume of packages produced in the country over the next five years.
Yesterday, the MWV Rigesa announced the sale of cardboard conversion unit in Feira de Santana (BA) for the Brazilian Group Penha. The value of the deal, which will be submitted to the Administrative Council for economic Defense (Cade), it has not been revealed.
The Penha, which bills itself as one of the five largest manufacturers of corrugated board of Brazil-the leader is Klabin-have monthly production capacity of 15 thousand tons of packages and has seven units in the States of Sao Paulo, Parana and Bahia. Founded 52 years, belongs to the family Funabashi and prepares, from the acquisition of the asset of Rigesa, to expand market presence in the Northeast.
In the interview, the President of MWV Rigesa and Senior Vice President of MWV, Robert Beckler, explained that the conversion unit of Bahia "wasn't performing in line with the strategy" of the Corporation and their sale does not involve changing the growth targets in Brazil.
"This restructuring aims to realign our resources, but have an interest in the whole country," said the Executive, who is also responsible for other operations of the group in Latin America. "We will increase 50% in the volume of packaging produced over the next five years," he said.
Over the past three years, the MWV Rigesa has invested more than $ 1 billion in Brazil, especially in the expansion of production capacity of kraft paper mill in Três Barras (SC). In addition, ushered in a new cardboard, in Araçatuba (SP).
As Beckler, the factory was sold to the Penha corresponds to less than 10% of the installed capacity of the MWV Rigesa in corrugated board. "The sale does not change our overall capacity and we still have plenty of room to grow in other units." With the contributions already carried out in the production of paper, the MWV Rigesa, he said, "is prepared for the next decade of growth".
To the Penha group, according to its Chief Executive Officer, Carlos Edson Shiguematsu, Feira de Santana consolidates investments until 2012. "We entered the Bahia market from an investment in recycled paper in 2005," said the Executive. "Until the end of last year, our focus was on the quality of the paper. Now, the opportunity arose to buy another drive, "he added. The group could already produce 1.8 thousand tons per month of packaging in a factory in Santo Amaro-next year, considering the unit bought of Rigesa, can produce up to 5 thousand tons per month of packages in Bahia. According to Shiguematsu, the group does not disclose its sales.
"Overall, the strategy is to grow," said Beckler, MWV. In the country, the American group is present still via the MWV Home, Health Beauty &, which produces valves, sprays and plastic dispensers and will receive new investments over the next three years; the MWV Specialty Chemicals, a producer of specialty chemicals that received contributions of approximately US $ 40 million; and the MWV Beverage packaging systems for beverages and dairy products.