São Paulo – Papirus, a Brazilian company that has been using recycled raw material to make cardboard for over 50 years, will invest 25 million reals (US$ US$ 14 million) in increasing its output by 12% over the next two years, and raising its export volume. The company, which has already sold to Europe, the United States and the Middle East, spent the last few years focusing on domestic sales and exports to Latin American countries.
“Domestic demand has increased, therefore our export capacity went down, and we ended up concentrating our exports on closer countries,” said Eduardo Gianini, the marketing manager of Papirus. “With our new investment and increased capacity, we will go back on the international market,” he stated.
The company’s goal for 2010 is to post revenues of 210 million (US$ 118 million), and thus recover some of the loss that we had last year, as a result of the world crisis, when revenues totalled 168 million reals (US$ 94 million). In a market with a current domestic turnover of 506,000 tonnes, according to data supplied by the Brazilian Pulp and Paper Association (Bracelpa), the company accounts for a 11.5% share, which it wants to raise to 14%.
According to Gianini, the goal is bold, but it is based on a repositioning and growth plan that takes several aspects into consideration, ranging from a change in company management to fluctuations in the market price of cardboard, which should increase by 12% this year, as against a decline of 8% last year.
Over the last ten years, the company invested 27 million reals (US$ 15 million) in modernizing its plant, and it also changed its management. Three years ago, Papirus went from being a family company to having an independent board. “From then on, a series of actions were taken in order to reposition the brand,” explains the manager. Now, the company’s focus is on establishing its brand as a favourite among packaging manufacturers.
About Papirus
Founded in 1952, Papirus Indústria de Papel was born out of the Ramenzoni family’s need to take charge of producing its own packaging for its hat factory. Within a few years, cardboard manufacturing had become the family’s main activity.
In 1972, Papirus inaugurated its plant in the city of Limeira, in the interior of the state of São Paulo. With a built area of 32,000 square metres and 350 employees, the company produces 90,000 tonnes of cardboard per year, and recycles 60,000 tonnes of paper scraps.
The raw material used by Papirus is purchased from 40 paper collector cooperatives, mostly in the regions of Limeira and Campinas, and from companies that collect scraps on the market.
Presently, Papirus’ clients include companies such as Unilever, Boticário, Kellogs, Pão de Açúcar (Taeq), Arcor, Mc Donald’s, Sara Lee, Faber Castell, Bob’s, Laboratório Bristol, Niely and Leão Júnior.
Contact
Site: www.papirus.com.br
E-mail: export@papirus.com
Telephone: (+ 55 19) 2113-6100
*Translated by Gabriel Pomerancblum
