01.01.03
Location: Curitiba, Paran·, Brazil
Sales: $58 million
Description: Key Personnel
Milan Starostik, chairman, Ana Seles Starostik, commercial director; William Starostik, marketing director, Romeo Bregant, industrial director; Vicente Batista de Lima, financial and administrative director; Cleber dos Santos, export director, Wagner Carvalho, Sales Manager
Plant Location
São Jose Pinhais-Paraná, BrazilISO Status: ISO 9002
Processes
Spunbonded, SMS, meltblown, laminated nonwovens
Brand Names
Kami
Major Markets
Hospital, agriculture, bedding, towel and coverlet, table mats, hygiene, baby diapers
Feeling the strains of economic crises throughout Latin America and into North America is roll goods producer Companhia Providencia, Curitiba, Paraná, Brazil. As the region’s largest roll goods producer, this company is well aware that economic conditions need to turn around before nonwovens consumption will pick up in Latin America.
“The growth has been much faster in past years than it has been recently,” explained international business director Cleber dos Santos. “A lot of this relates to the buying power of people. When people are scared about their jobs, they tend not to spend as much money.”
Currently more than 70% of Companhia Providencia’s estimated 46,000 tons of spunmelt nonwovens capacity targets hygiene and medical applications, mainly disposable baby and adult diapers. Sales in these regions have been flat during recent economic crises.
These crises have made filling capacity on Providencia’s seventh production line, completed in February 2003, more difficult than with past lines. The five-beam Reicofil SSMMS line, which is reportedly capable of producing 1800-2000 tons of material a month, is now running with success, according to Mr. dos Santos.
Providenciá has continued a tradition of installing a new production line every two years. Whether or not this practice will continue, meaning the next line would be operational in 2005, depends largely on economic recovery and the ability of the company to fill capacity on its newest line.
Currently all of Providencia’s seven lines feature spunmelt technology and are located in Paraná. In the past, executives have felt that having all of its lines containing similar technology and be located in the same spot, maximized the company’s resources, but as the logistics of the market have changed in recent years so have the requirements for market leadership. “Everyday, the logistics of the market are becoming more of a major factor in our cost structure,” Mr. dos Santos explained. “How this will shape the future is still a question mark.”
Currently, Providenciá has no plans to diversify its technology base or to expand outside of Brazil, but if the markets it serves demands, Providencia will analyze this possibility. Representing more than 90% of its sales base, Latin America is clearly the company’s strongest market. In fact, the remaining 10% of sales target North America only in an effort to move excess capacity that Latin America cannot absorb on its own.
Unlike North America and Europe, the Latin American hygiene market contains a variety of large and small players, which have given Providenciá the strength of a diverse customer base. This has kept the company from relying too much on one single customer, keeping it more independent in terms of decision making.
“We consider ourselves a technologically driven company so our mission is to always offer a premium product,” Mr. dos Santos explained. “With a strong customer base, you can get premium prices for premium goods. You can’t always do that when you are relying only on one customer.”
Sales: $58 million
Description: Key Personnel
Milan Starostik, chairman, Ana Seles Starostik, commercial director; William Starostik, marketing director, Romeo Bregant, industrial director; Vicente Batista de Lima, financial and administrative director; Cleber dos Santos, export director, Wagner Carvalho, Sales Manager
Plant Location
São Jose Pinhais-Paraná, BrazilISO Status: ISO 9002
Processes
Spunbonded, SMS, meltblown, laminated nonwovens
Brand Names
Kami
Major Markets
Hospital, agriculture, bedding, towel and coverlet, table mats, hygiene, baby diapers
Feeling the strains of economic crises throughout Latin America and into North America is roll goods producer Companhia Providencia, Curitiba, Paraná, Brazil. As the region’s largest roll goods producer, this company is well aware that economic conditions need to turn around before nonwovens consumption will pick up in Latin America.
“The growth has been much faster in past years than it has been recently,” explained international business director Cleber dos Santos. “A lot of this relates to the buying power of people. When people are scared about their jobs, they tend not to spend as much money.”
Currently more than 70% of Companhia Providencia’s estimated 46,000 tons of spunmelt nonwovens capacity targets hygiene and medical applications, mainly disposable baby and adult diapers. Sales in these regions have been flat during recent economic crises.
These crises have made filling capacity on Providencia’s seventh production line, completed in February 2003, more difficult than with past lines. The five-beam Reicofil SSMMS line, which is reportedly capable of producing 1800-2000 tons of material a month, is now running with success, according to Mr. dos Santos.
Providenciá has continued a tradition of installing a new production line every two years. Whether or not this practice will continue, meaning the next line would be operational in 2005, depends largely on economic recovery and the ability of the company to fill capacity on its newest line.
Currently all of Providencia’s seven lines feature spunmelt technology and are located in Paraná. In the past, executives have felt that having all of its lines containing similar technology and be located in the same spot, maximized the company’s resources, but as the logistics of the market have changed in recent years so have the requirements for market leadership. “Everyday, the logistics of the market are becoming more of a major factor in our cost structure,” Mr. dos Santos explained. “How this will shape the future is still a question mark.”
Currently, Providenciá has no plans to diversify its technology base or to expand outside of Brazil, but if the markets it serves demands, Providencia will analyze this possibility. Representing more than 90% of its sales base, Latin America is clearly the company’s strongest market. In fact, the remaining 10% of sales target North America only in an effort to move excess capacity that Latin America cannot absorb on its own.
Unlike North America and Europe, the Latin American hygiene market contains a variety of large and small players, which have given Providenciá the strength of a diverse customer base. This has kept the company from relying too much on one single customer, keeping it more independent in terms of decision making.
“We consider ourselves a technologically driven company so our mission is to always offer a premium product,” Mr. dos Santos explained. “With a strong customer base, you can get premium prices for premium goods. You can’t always do that when you are relying only on one customer.”