Brazilian Textile and Apparel Industry Association (ABIT) informed that Cedro Cachoeira has just opened an office in São Paulo.
The 300-meter area will include exportation management, transferred from Belo Horizonte, and a complete showroom of fabrics offered to the market. 'We want to be closer to foreign buyers,” explained Cedro commercial director Fabiano Soares Nogueira. 'It's difficult for our customers to go to Belo Horizonte.'
The company's headquarters is in Belo Horizonte. The inauguration of the São Paulo office is part of a company strategy to expand exports, which today are responsible for 10% of total sales. The goal is to double the volume sold overseas in five years. “It's impossible to think about expanding in a domestic market that only grows 2% per year,” said Nogueira. 'We need more strength in the overseas market.'
The Director believes the São Paulo office will contribute to getting a greater number of fabric importers, especially from South American countries, to know Cedro Cachoeira's products. Between 2004 and 2005, the company invested R$ 48 million to expand production capacity, which was 168 million square meters of fabric, by 16.5 percent.
The production increase was in indigo, a fabric with more aggregated value compared to denim. The expansion was in the two factories installed in the township of Pirapora. The industry also has two units in Caetanópolis and one in Sete Lagoas.
With the increased production, the company was expecting to have earnings of R$ 620 million last year. Last year's balance sheet has not been disclosed yet. Gross earnings for Cedro in 2004 were R$ 486.3 million, 33.7 percent more than determined the year before. Net profits were R$ 25.3 million, more than double the amount registered in 2004's balance sheet. That year, exports totaled US$ 19 million.
Cedro Cachoeira is Brazilian manufacturer of indigo and denim, headquartered in the State of Minas Gerais. Cedro's textile plant produces over 150 million square meters of fabric per year at its units located in the State of Minas Gerais: in the towns of Sete Lagoas, Caetanópolis, and Pirapora.
Brazilian Textile and Apparel Industry Association
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