The difficult environment and decline in cement sales in Brazil have prompted Votorantim Cimentos to adopt new measures to maintain its competitiveness. The company’s key strategy to get through this critical period in the county continues to be a focus on productivity, innovation and performance in strategic markets for the company.
Cement sales in the domestic market fell by 13.9% from January to May 2016 compared with the same period the previous year, according to the National Cement Union. In addition to this decline in sales, the expenses of Votorantim Cimentos are in large part linked to the IPCA in Brazil, which increased an estimated 18.2% in the last two years.
Votorantim Cimentos has therefore taken significant steps to maintain its financial strength and operational excellence. However, these initiatives are still not sufficient to absorb the impact of these increases. “Following other sectors that have been as strongly impacted by the crisis and the inflationary process as our industry, we’ll need to adjust our portfolio to this reality by passing on part of last year’s inflation to our products,” says Mauricio Russomanno, Votorantim Cimentos’ Sales & Marketing and Concrete Business director.
Votorantim Cimentos believes in the fundamentals that can drive cement consumption in Brazil, such as the infrastructure deficit, the housing deficit and a continued low per capita consumption of cement. The company is committed to maintaining its plan of investing R$5 billion by 2018, focusing on the long term in Brazil and abroad, in line with its strategy of geographical diversification of its operations. “We are confident that the country will soon resume its growth trajectory, thus boosting our industry,” concluded Russomanno.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/the-americas/06072016/votorantim-cimentos-adopts-new-measures-466/