Wednesday, May 04, 2016

Sales of glass for the construction industry will have new retraction

The slowdown in the construction sector has been reflected in falling sales for the segment by glass manufacturers. For 2016, the Brazilian Technical Association of the Automatic glass Industries (Abividro) designs 10% retracement to 15% in the volume of glass sold for construction and for the furniture sector, after indentation of 15% last year.
From January to March, there was a fall of sales in the level of 15% to 18%, as the Superintendent of Abividro, Lucien Belmonte. The pullback began in may 2014, reversing the trend of growth. That year, the volume sold remained stable in relation to 2013.
Abividro numbers include sales for the furniture sector, but the fall for the construction is the most expressive. There is less demand for glass for residential, commercial and infrastructure works. Belmonte points out that, in the residential segment, the volume of buildings nearing completion is smaller, due to the reduction of releases in recent years.
The Guardian is one of the manufacturers of glass designs less product demand for new real estate projects. Until 2015, the company felt the retraction demand for glass for facades, because the volume of deliveries of buildings was very expressive. From this year, the number of buildings in conclusion begins to decrease.
After keeping a stable turnover last year compared to the 600 million R$ 2014, the Guardian estimates 10% drop in 2016, according to the Executive Director in Brazil, Eduardo Borri. The company provides glass customers that transform the product for construction-facade of buildings and interiors (mirrors, glass for furniture, boxes of bathroom and doors), the automotive industry and the white line. The construction accounts for 70% share of 75% of its turnover.
In 2014, the Guardian has increased its production capacity of glass for interiors, with an investment of 40 million R$ in new line of mirrors in Tatuí (SP). This enabled market share gains last year. The use of glass in Interior and reform tends to increase, according to the Executive, while the volume of new construction.
There was a drop in demand for glass for the automotive industry and the white line in 2015, and the Executive says hope stability in sales for these sectors this year.
In 2016, the retraction of the billing Guardian will not be increased because the glass maker expects 30% increase in exports. The company, which has sold products for Latin America, has started shipments to the United States this year. On the fall of domestic sales and the devaluation of the real, the Guardian raised in 20% exports in 2015.
The company did not reduce the workforce in 2015 or at the beginning of year. "We''re decreasing the waste and being as efficient as possible," he says. There was no price adjustments in 2016, despite rising costs. No high is expected, as the Executive. In addition to the factory of Tatuí, Guardian produces glass at Puerto Real (RJ).
The Cebrace, the market leader in glass plans in Brazil, projected, initially, stability for the year, but revised, in the first quarter, the estimate for shrinkage of 10%, due to the deepening economic crisis in the country. Joint venture between Saint-Gobain and NSG-Pilkington, Cebrace produces base items-(common) float glass, laminated glass, mirror and sun protection glass.
According to Executive Director of Cebrace, Reinaldo Valu, the company''s investments have not been cancelled or postponed. "We know well the cyclical character of these crises and we know that we must be prepared for the resumption of the market," says Valu. The Cebrace does not disclose revenues.
Another company that invests in the potential of the Brazilian market is the Japanese Glass maker Asahi Glass Company (AGC). The company has announced R$ 700 million investment in new plant, which will have a daily production capacity of 850 tons of flat glass. The unit, in Guaratinguetá (SP), will produce glass for construction-real estate and infrastructure.
"When consumer confidence is resumed, the gear back moving", says Abividro.
Valor Econômico - 04/05/2016
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