Sales Reports

Companhia Providencia

September 11, 2012

Paraná, Brazil
2012 Nonwovens Sales: $273 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 and a steady rise in sales, Companhia Providencia, Sao Jose dos Pinhais, Brazil is poised for even further growth moving forward. The maker of spunmelt nonwovens reported a whopping 15.8% increase in sales in 2012, which was largely attributed to new investments both in Brazil and the U.S.
In March, the company completed work on its second U.S. line in Statesville, SC, a move that adds 20,000 tons of U.S. capacity and doubles the size of the site, which was opened in early 2011 as part of a move to boost Providencia’s U.S. sales and alleviate the strain on the company’s Brazilian operation.
According to the company, this latest line fulfills a need for high tech products destined to the disposable hygiene market including infant and geriatric diapers, sanitary pads and others and for medical use such as aprons and surgical fields. The line, which represents a $60 million investment and is known as Kami 13, was expected to reach its maximum capacity within six months, according to Hermínio de Freitas, Companhia Providência’s CEO.
“We’re optimistic with the business increase in the U.S.,” Freitas says. “The evolution in our first line, inaugurated in January 2011, was very positive. Providencia has a total productive capacity of 140,000 tons of nonwoven/year.”
Beyond the U.S. site, Providencia operates two sites in Brazil where it added its 11th line in Pouso Alegre in June 2012. This new line added 20,000 tons to the group’s capacity and has been meeting domestic need in the disposable hygiene and medical products segment.
This line was the third at Providencia’s Pouso Alegrea site, which is logistically well placed to receive raw materials and rapidly meet the needs of the customers. Elsewhere in Brazil, Providencia operates an eight-line site in Sao Jose dos Pinhais, which received an investment in the shape of a new line nearly every other year in the late 1990s and early 2000s.
As the company continues to invest in Brazil and the U.S., South American sales continue to represent the lion’s share of sales, with domestic sales comprising about 60% of Providencia’s total revenues. This figure is expected to decrease as U.S. investments come onstream.

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