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Brazil: CIV investment plans

The Brazilian CIV (Companhia Industrial de Vidros), controlled by the Pernambuco-based group ICAL/Cornelio Brennand, is to start a new round of investments worth USD 30 million up to the end of 2005. …

The Brazilian CIV (Companhia Industrial de Vidros), controlled by the Pernambuco-based group ICAL/Cornelio Brennand, is to start a new round of investments worth USD 30 million up to the end of 2005. The investments are part of the company“s ongoing program of technological upgrades worth USD 50 million between 1998 and 2002. The funds will go into infrastructure, equipment acquisition and two new furnaces and will boost the company“s production capacity by 35%, from 940 m tons to 1,270 m tons per day by 2005, to reach a total of 1.25 billion items per year. New furnaces to be installed in the Recife and Vitoria based plants will add 330 m tons per day to the company production capacity: 110 m tons in the Recife based plant and 220 m tons per day at Vitoria. With four plants in the Northeast state – Recife, Vitoria de Santo Antao (Pernambuco state), Fortaleza and Salvador, the company operates in the food, beverages and pharmaceuticals packaging segments. The Vitoria-based unit will specialize in the production of packaging for the pharmaceuticals industry and will also manufacture a range of kitchen utensils. USD 2.5 million was invested in the installation of a clean room in the plant. CIV plans to boost exports this year to 10%, reaching 20% in 2004. In 2002, the company exported 15 million items to the US, Central America, Caribbean, Mercosur and Africa markets. This year, CIV entered contracts with US importers for the sale of food and beverage glass packaging, which will go to the Caribbean and Central America. The company expects packaging and kitchen utensils exports to reach 1 million items, totaling 70 million units and USD 4 million turnover. After increasing sales to Mexico and France, CIV is currently entering a contract with a German distributor, says the company“ marketing and commercial director Paulo Drummond. Drummond is betting on the recovery of the glass packaging sector, which lost market share to PET and aluminum over recent years, mainly in the beverages segment through the expansion of the ice products niche and the brewing industry (long neck bottles). The ice products niche currently has 35 products and reported a boom of 75% in 2002 or 12 million boxes. The long neck bottle market is increasing at 2% per year and is also innovating through new products launches like Skol Beats (Ambev), in a transparent bottle.

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