Voith Paper see tissue market optimistic for 2019 in Brazil

One of the largest suppliers of equipment and solutions for the global paper industry, Voith Paper is optimistic about the post-election scenario in Brazil. The evaluation is that, after the definition of the new President of the Republic, that sector companies postponed investments because of the political uncertainty will return to their projects and must resume modernization and expansion plans, encouraged also by the prospect of economic growth. To the President of the Paper Division of German group in South America, Hjalmar Fugmann, both the name of Jair Bolsonaro (PSL), who leads the polls to vote, as PT Fernando Haddad are already "priced". So, in a scenario that considers expansion of gross domestic product (GDP) and high demand of roles in the foreign market, missing only know about who will be the next President so that new projects are announced. "The market seeks information to bring the future to present value and make decisions. Each candidate brings a different perspective. I believe the simple definition that should be enough, "said the Executive at the Value. Given this, and the strong performance of international markets for packaging, the expectation for the 2018/2019 fiscal year, which began on October 1, is positive. New paper machines projects geared to exports and modernization of equipment, to face the increased costs in recent years – pulp prices have risen about 40% of the only in 2017 and the dollar appreciated upped spending on real raw material-can boost business in the region, added Fugmann. "When we talk with customers, we see the desire to invest in 2019". In the past two years, the development of projects and provision of machinery to overseas markets had relevant participation in the Voith Paper in Brazil. In the domestic market, which reduced the pace of investments in the wake of the economic crisis and the new wave of industry consolidation, one of the few exceptions were the two paper machines for sanitary purposes (tissue) of Suzano Papel e Celulose, built by German company. On the other hand, the improvement of the European and American economies raised the demand for paper – mainly of packaging and tissue-in these markets, the industry came back to invest and the brazilian operation participated in more projects abroad. Last year, the net revenue of the Voith Paper in Brazil grew 16.4%, to $532 million, according to the annual R Exame Magazine. Today, in the portfolio, the company has orders for machines that are installed in the United States and Mexico and is responsible for the world's largest drying cylinder, commissioned by a paper company in Germany. Globally, the last fiscal year was "exceptional" for the Voith Paper, account executive. The German group, which must disclose the results of the fiscal year in the next few weeks, closed the period with record sales of new machines and put at risk the leadership position of Valmet, your main competitor in the paper segment, in new machinery. In fiscal year 2016/2017, sales of the Voith group, which completed 150 years, totaled 4.3 billion euros, while orders grew 6 percent, to 4.4 billion euros. Two years ago the group, Fugmann took a little over a year the Presidency of the Paper in South America with the stated intention of the company cacifar as technological partnership of its customers, with a focus on innovation. To this end, incorporated to the portfolio 4.0 industry solutions, one of them already installed in a Brazilian client – the first experience in the paper industry in South America and one of the first in the world-and stimulate a new approach, the company startups and the area of research and development of own paper. "The industry has an interest in being a pioneer and we're looking at what the customer of our customers want to be able to serve them," he said. A showcase of the new Voith solutions, including virtual reality, will be available in the Congress of the Brazilian Technical Association of pulp and paper (ABTCP), in Sao Paulo next week.