Brazilian cookware and houseware manufacturer Tramontina plans to invest 10M reais in 2014 in new utensils production line, specially designed for barbecue and churrasco, company president says

LATIN AMERICA , April 25, 2014 () – Brazilian cookware and houseware manufacturer Tramontina plans to invest BRL 10 million (USD 4.5m/EUR 3.3m) in 2014 in a new utensils production line, specially designed for barbecue and churrasco, president Clovis Tramontina said on Thursday.

The sum is part of the company's BRL-100-million investment programme for 2014. In 2013, the company invested between BRL 70 million and BRL 80 million, Tramontina's head said.

After the 15% annual revenue growth to BRL 3.5 billion in 2013, Tramontina projects a 17% increase this year.

The group, headquartered in Carlos Barbosa municipality, in the southern state of Rio Grande do Sul, has a portfolio of some 18,000 products, such as utensils and cooking equipment, tools, electrical goods and furniture.

In 2013, Tramontina launched two new plants in Rio Grande do Sul and in 2015 it will open a new facility in the northeastern state of Pernambuco, where it already produces garden furniture.

In addition, the cookware maker plans a factory for non-stick pans in Carlos Barbosa, which will double the company's production capacity for this type of product to 20,000 pieces per day.

In the municipality of Farroupilha, Tramontina will start operating a factory for professional bespoke kitchens. A new plant for furniture and plastics will open at the end of 2015 in Moreno, Pernambuco.

Although the domestic market will continue to be Tramontina's main revenue driver, the company expects to boost its exports to USD 200 million (EUR 144.6m) in 2014 from USD 168 million in 2013, thanks to the recovery of its business in the United States. As for exports to Argentina, which was Tramontina's largest exporting market three years ago, they will total between USD 2 million and USD 3 million this year, due to the restrictions on imports imposed by the local government.

(USD 1 = EUR 0.723)

(BRL 1 = USD 0.450/EUR 0.325)

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