Eucatex is a leading supplier of wood products to the construction industry, manufacturing hardboard and MDP/T-HDF/MDF panels.
In 1996, sales of wood products to the construction industry remained stable, reversing the downward trend observed since mid-1995. By 1997, the industry recovered, supported by measures taken by the Brazilian government to increase the availability of credit. In 1998, higher interest rates once again curbed demand for construction materials, attesting to the strong correlation between the industry and the performance of the world economy.
During periods of stronger activity in the domestic economy, as observed in 1997, the home improvement industry proved very promising by accounting for a significant portion of the industry’s revenues. The industry is an important one during periods of economic stability and Brazil’s home improvement industry shows excellent growth potential.
Brazil’s industry also enjoys good prospects for generating revenue from wood product exports, mainly to countries in the Mercosul region, given its advantages in terms of scale, labor costs and technology, and its positions as one of the world’s most modern industries with a tradition as an exporter.