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Votorantim Cimentos announces 8 new plants in seven states in Brazil

World Cement,

Votorantim Cimentos has announced a plan to implement eight cement factories in seven states across Brazil. This brings its consolidated investment plans for the period 2007 – 13 to R$5 billion all told, calling for 22 new plants and some 7000 new jobs, direct and indirect. Nine are already in operation, five are under construction, and eight are in the design phase.

The company’s goal is to stay ahead of growing demand for basic building materials in Brazil in order to assure full supply to today’s and tomorrow’s market. Its strategy is to operate with spare production capacity so as to be able to keep pace with a market characterised by sharp seasonal fluctuations, localised demand from large infrastructure projects, industrial construction, high levels of consumption in retail, and a steadily expanding social housing segment.

 “We are moving up our investment schedule in order to reinforce our commitment to keep the national construction market well supplied,” stresses Walter Schalka, CEO of Vorotantim Cimentos. “We will operate with what we call strategic idle capacity, growing in potential markets and expanding our industrial and logistical capabilities in order to improve the level of service to customers.”

The choice of regions for the construction of new plants takes into account a tendency for cement consumption in Brazil to become more regional and decentralised as it grows. By extending geographic coverage Votorantim Cimentos is enhancing its competitiveness and positioning itself closer to the markets with the greatest potential demand. All this enables the company to provide an ever more efficient service to clients, especially resellers, construction companies and concrete suppliers, and to final consumers.

It is important to note that Votorantim Cimentos is committed to efficient environmental management and ensures that all industrial projects include measures to reduce carbon emissions, protect the environment, and contribute to the social and economic development of the local community.

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