Tiger raises contributions to accompany high demand

To attend the resumption of demand in Brazil and to grow in other Latin American markets, the Tigre group will invest $ 250 million this year. The value will be above the amount that the manufacturer of pipes and fittings have invested. In the past ten years, reports, applied to an average of $ 200 million a year.
According to the President of the company, Evaldo Dreher, the investments will be aimed at product launches, technological upgrading and expansion of productive capacity. He reported that $ 110 million of that amount will be applied in the opening of five factories. The cities of Camaçari (Bahia) and Rio Claro (SP) will have units for production of water boxes. Maceió will receive a new unit of the joint venture of Tiger with the American ADS, for use in the manufacture of polyethylene corrugated pipes. These units should be inaugurated until August.
Two other units will be opened in Lima, Peru, and another drive with the ADS and a large factory of PVC pipes, which alone will consume $ 50 million. "It will be the most modern in the world," said Dreher. The first is expected to start operation in September and the second, between the end of this year and the beginning of 2014.
The Tiger already had two smaller units in Peru, which will continue in operation. With the new factories, the company will have 12 Brazilian and 16 units abroad. The production capacity will be 410 000 tons of pipes and other products per year to 440 thousand tons per year.
In 2012, the Group posted revenues of R $ 3.1 billion, with a high of 6% over the previous year. The result was below the expected growth initially, which was 10%. "The demand for infrastructure performance was pretty bad last year, but should resume this year", said Dreher. He also said that the demand of families making reforms, which accounts for more than half of the revenues of the Tiger, will remain strong.
The highlight was the performance in other Latin American markets. Second Dreher, Tiger's sales grew 20% in Peru, 10% in Chile and between 15% and 20% in Paraguay and Bolivia.
For this year, an estimated 12% expansion. Considering acquisitions, the goal is to reach a turnover of r $ 5 billion by the end of 2014-increase of 60% compared to 2012.
Dreher said acquisitions in Brazil are evaluated as possibilities of complementary portfolio and focus are active in Latin America. "It's hard to get into consolidated markets with your brand, from scratch; an acquisition allows us to quickly enter a market ". In January, the company completed the purchase of Commercial local leader Matusita Peruvian in PVC pipes, and the Tiger is aware of other opportunities on the Mainland, said the Executive.
The company estimates that the billing out of Brazil can represent 35% of the company's result within five years. Today, this slice is 25%.