Brazil’s VCP paper company to open Chinese office

27 November 2006

Sao Paulo, Brazil, 27 Nov – Brazilian pulp and paper company Votorantim Celulose e Papel (VCP) will open its own commercial office in China next year to end being represented by agents, Gazeta Mercantil has reported.

China is currently the destination for between 25 and 30 percent of exports of VCP, a subsidiary of Votorantim and one of Brazil’s largest private economic groups.

This chunk of the company’s overseas sales represents a volume of 250,000 to 300,000 tons per year.

The strategy of dealing directly with Chinese clients has been adopted by VCP due to increased demand in China, mainly through growth in the education sector, said VCP’s investor relations consultant, Andrea Kannebley.

She added that world pulp consumption is growing by 1.5 percent annually, or 1.5 million tons, with China accounting for 16 percent of this demand.

“The decision to open the Chinese office is part of VCP’s strategy to boost revenues fourfold by 2020. The company’s turnover last year was US$ 1.1 billion, with exports responsible for 48 percent of this income,” Gazetta Mercantil reported Thursday.

Between January and September 2006, the Votorantim group subsidiary’s profits were US$ 223.4 million, some 3.2 percent up on the same period last year. (macauhub).