09.01.11
Paraná, Brazil
www.providencia.com.br
2011 Nonwovens Sales: $260 million
Key Personnel: Herminio Freitas, president and CEO; Eduardo Feldmann, CFO; Alexandre Domeque, commercial director; Romeo Bregant, engineering and technology director, Fabio Kryzanovski, operational director
Plants: Sao Jose dos Pinhais-Parana, Brazil; Pouso Alegre-Minas Gerais, Brazil; Statesville, NC
Processes: Spunbond, SMS, meltblown, laminated nonwovens, printed nonwovens
Brands: Kami, Protect, Protect Advanced, Protect Ultra, Kami-Soft
Major Markets: Medical, agricultural, furniture and bedding, towel and coverlet, hygiene, filtration, wipes
With a new line up-and-running in Pouso Alegre, Brazil, and another one set to come on-stream in Statesville, NC, Brazil’s Companhia Providencia is poised to increase its global output by 40% (40,000 tons) this year, reaffirming its spot among the top spunmelt manufacturers in the world.
This expansion comes after significant growth has already been recorded by the Paraná-based company. In 2011, Providencia reported sales grew 16.2% to $260 million thanks largely to an 11.7% volume increase.
These increases can be attributed to the start-up of Providencia’s first U.S. line, based in Stateville, NC, which came on-stream in late 2011. The new line not only added 20,000 tons to the company’s operations, it also established its first manufacturing base outside of Brazil. In announcing the formation of a U.S. base in 2010, Providencia said the site would ease the strain on its Brazilian operations in meeting supply to North America, which already accounted for 20% of sales.
And, it appears the new line has been a success, already reaching record outputs. A second line is already on schedule to be completed by the end of 2012, bringing another 20,000 tons to the North American markets, according to company documents.
Meanwhile, back in Brazil, Providencia completed work on a second production line in Puoso Alegre in June, adding 20,000 tons and tripling output at the site. This $63 million investment was announced in 2011 when executives said it would meet domestic market demand in the disposable hygiene and medical products segments.
Executives described the investment as a means to bolster its South American operations. “By the end of 2012, the region will account for more than 70% of the company’s production capacity,” says Herminio Freitas, CEO.
The Brazilian nonwovens segment has grown by an average of 10% over the past five years, greater than the 5% growth reported in the overall economy.
“We chose Pouso Alegre because it is a site which is logistically well placed to receive raw materials and rapidly meet the needs of our customers,” Freitas says. “As well as having the advantage of already operating in the region, we also have access to a local reservoir of experienced labor.”
Elsewhere in Brazil, Providencia operates an eight-line site in Sao Jose dos Pinhais, Brazil. While the company invested ambitiously in this site in the late 1990s and early 2000s, adding a new line nearly every other year, a line has not been added at this site recently as Providencia has instead focused on expansion elsewhere in Brazil and in North America.
As the company continues to invest in Brazil and the U.S., the former continues to be its largest market, representing about 60% of sales. This figure is expected to decrease as U.S. investments come on-stream, bringing the percentage of domestically made goods down. Still, the company expects growth to remain the strongest throughout Latin America.
www.providencia.com.br
2011 Nonwovens Sales: $260 million
Key Personnel: Herminio Freitas, president and CEO; Eduardo Feldmann, CFO; Alexandre Domeque, commercial director; Romeo Bregant, engineering and technology director, Fabio Kryzanovski, operational director
Plants: Sao Jose dos Pinhais-Parana, Brazil; Pouso Alegre-Minas Gerais, Brazil; Statesville, NC
Processes: Spunbond, SMS, meltblown, laminated nonwovens, printed nonwovens
Brands: Kami, Protect, Protect Advanced, Protect Ultra, Kami-Soft
Major Markets: Medical, agricultural, furniture and bedding, towel and coverlet, hygiene, filtration, wipes
With a new line up-and-running in Pouso Alegre, Brazil, and another one set to come on-stream in Statesville, NC, Brazil’s Companhia Providencia is poised to increase its global output by 40% (40,000 tons) this year, reaffirming its spot among the top spunmelt manufacturers in the world.
This expansion comes after significant growth has already been recorded by the Paraná-based company. In 2011, Providencia reported sales grew 16.2% to $260 million thanks largely to an 11.7% volume increase.
These increases can be attributed to the start-up of Providencia’s first U.S. line, based in Stateville, NC, which came on-stream in late 2011. The new line not only added 20,000 tons to the company’s operations, it also established its first manufacturing base outside of Brazil. In announcing the formation of a U.S. base in 2010, Providencia said the site would ease the strain on its Brazilian operations in meeting supply to North America, which already accounted for 20% of sales.
And, it appears the new line has been a success, already reaching record outputs. A second line is already on schedule to be completed by the end of 2012, bringing another 20,000 tons to the North American markets, according to company documents.
Meanwhile, back in Brazil, Providencia completed work on a second production line in Puoso Alegre in June, adding 20,000 tons and tripling output at the site. This $63 million investment was announced in 2011 when executives said it would meet domestic market demand in the disposable hygiene and medical products segments.
Executives described the investment as a means to bolster its South American operations. “By the end of 2012, the region will account for more than 70% of the company’s production capacity,” says Herminio Freitas, CEO.
The Brazilian nonwovens segment has grown by an average of 10% over the past five years, greater than the 5% growth reported in the overall economy.
“We chose Pouso Alegre because it is a site which is logistically well placed to receive raw materials and rapidly meet the needs of our customers,” Freitas says. “As well as having the advantage of already operating in the region, we also have access to a local reservoir of experienced labor.”
Elsewhere in Brazil, Providencia operates an eight-line site in Sao Jose dos Pinhais, Brazil. While the company invested ambitiously in this site in the late 1990s and early 2000s, adding a new line nearly every other year, a line has not been added at this site recently as Providencia has instead focused on expansion elsewhere in Brazil and in North America.
As the company continues to invest in Brazil and the U.S., the former continues to be its largest market, representing about 60% of sales. This figure is expected to decrease as U.S. investments come on-stream, bringing the percentage of domestically made goods down. Still, the company expects growth to remain the strongest throughout Latin America.