Wednesday, December 06, 2017

Fibria see high in investment and possibility of mergers in the industry

Fibria Celulose (FIBR3.SA), largest producer of eucalyptus pulp in the world, reported on Tuesday that projects a high of almost 60% in investments in the next year, as it seeks to increase your capacity and said executives evaluate mergers more forward.
In a meeting with investors in New York, the Company estimated investments of 3.43 billion reais in 2018, up from 2.18 billion dollars disbursed in 2017.
About 444 million dollars of this increase will come from investments in your recently completed 2 Skyline Drive, which started production of cellulose in August.
Fibria still reported that follows confident about demand from China, which contributed with a series of adjustments in the prices of pulp this year, helping boost the company's shares to record highs in recent months maximum.
"There is no doubt that Chinese growth is far from lost power," said the company in your presentation. "In fact, is coming to the next level, with very aggressive goals."
To explore the demand, the Company evaluates the potential expansion, both in the form of another factory in your complex in the State of Mato Grosso do Sul as possible via mergers and acquisitions, said to reporters President-Company Executive, Marcelo Castelli.
The watchword in both cases is "discipline," he said, pointing to the relatively balanced perspective between supply and demand in the coming years.
Castelli said that Fibria has considered buying the rival Eldorado, but then decided that the asset was too expensive. The company was sold to the Dutch Paper group Excellence NV, controlled by the owners of the Indonesia Asia Pulp Paper Co & 15 billion reais.
Some analysts speculated that the deal could precipitate a new wave of deals in the industry.
If there is consolidation, is likely to occur with a capital "m" and a "tiny", according to Castelli. "No one has sufficient financial capacity to acquire the other. The name of the game is mergers, "he added.
Fibria's shares (FIBR3.SA) rose 2,66% to 16:17 on B3, quoted at 45.07 reais. So far in 2017, the papers went up 44%.
The two main groups of shareholders of the company are the industrial conglomerate Votorantim and BNDES State Bank.
Reuters – 05/12/2017
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