Companhia Providência Announces $120 Million Investment In Two Production Lines

Companhia Providência has announced new investments of up to $120 million in Brazil and the United States. The value represents the cost of installing two new production lines as well as other related assets, each one with an annual installed capacity of 20,000 tons of nonwovens. The production lines are scheduled to go into operation in the first half of 2012 and will result in an increase of 40% in installed capacity which will then amount to a total of 140,000 tons/year.

The company has also signed a memorandum of understanding with an option agreement for purchasing two further production lines from the supplier, Reifenh?user Reicofil GmbH & Co. KG. The inauguration of another project where work is in progress, the plant in Statesville, North Carolina-- the Company's first overseas operation, is programmed for the end of January 2011.

"We are expanding our production capacity and consolidating our position among the largest producers of nonwovens in the world, in line with our strategic plan which provides for growth and internationalization. In addition, we are confirming our vocation for investments in state-of-the-art technology, the continued financial strength of our company and the commitment to our shareholders," said Hermínio de Freitas, Companhia Providência's CEO.

The new investments are designed to increase the productive capacity of the plants in line with growth in the domestic and international markets. Such investments also follow the Company's strategic plan, the reduction in logistical costs and greater proximity to major consuming centers for nonwovens. The new lines will produce nonwovens for the manufacture of hygienic disposable items – diapers and sanitary pads - and disposable medical items – gowns, drapes and other protective surgical apparel.

Source: Nonwovens Industry