12 May 2011 00:18 [Source: ICIS news]
SAO PAULO (ICIS)--French specialty chemicals producer Rhodia will invest Brazilian reais (R) 5.3m ($3.3m, €2.3m) in 2011 to expand production capacity at its Brazilian engineering plastics plant, the company said on Wednesday.
Rhodia will expand capacity at its plant in Sao Bernardo do Campo, Sao Paulo state, by 6,000 tonnes/year to meet Brazil's growing demand for engineering plastics, said Francois Hincker, president of the company's engineering plastics global business unit, on the sidelines of the Brasilplast trade fair and conference.
Hincker adding the expansion should be completed by the end of this year.
The plant currently has a 50,000 tonne/year capacity, according to Rhodia.
"Sales of engineering plastics in Brazil increased 16% in the first four months of 2011, compared with the same period of 2010," he said.
According to Hincker, the strong growth rate in the period helped the company to decide on the expansion for the plant.
We are optimistic about the future demand of engineering plastics in Brazil," he added.
The company projects a sales growth rate of over 10% for 2011.
Hincker said Rhodia is importing part of the company’s engineering plastics output from its European operations to meet local demand while the plant is being expanded.
Brasilplast, which runs 9-13 May, is a major event for the plastics industry in South America, and is organised and promoted by Reed Exhibitions Alcantara Machado, a joint venture between Reed Exhibitions and Alcantara Machado.
($1 = R1.61, $1 = €0.69)
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