Eucatex is now the seventh largest paint producer in Brazil, with a three percent market share, following Suvinil, Coral, Sherwin-Williams, Renner, Lukscolor and Akzo, according to market analyst Lafis. Of these, Renner and Eucatex are the remaining majority domestically-owned companies. Eucatex has a short-term goal of raising its market share to five percent of the overall paint and coatings market.
Eucatex produces a full line of architectural coatings, including acrylics, varnishes, enamels and other wood and stucco coatings and finishes. The company also produces flooring, doors and partitions, supplying the domestic furniture and construction market.
Eucatex's paint segment accounted for 15% of sales in 2007, up from 12% the year before. Until 1995, when the Salto factory began production, Eucatex only produced paints and coatings for its own use in the production of fiberboards. Now the company has built a strong position in the architectural segment with the premium Eucatex brand, and with its economy brand Peg-Pint. Within its product portfolio of fiberboards, the company includes approximately 30 different color coatings.
The company recently announced plans to build a new R$130 million thin high-density and medium-density hardboard plant at Salto. While the company's primary sales are based on renewable forest products, it also is very active in environmental efforts. Eucatex has the capacity to process 20,000 metric tons of waste wood or wood fiber products per month, and has advanced equipment for separating paper, plastic, metal and non-ferrous materials.
For all manufacturers, sales in the Brazilian paint and coatings industry were up six percent to $2.75 billion in 2007 compared to 2006, according to preliminary figures recently released by the Sindicato da Industria de Tintas e Vernizes do Estado de São Paulo, or Sitivesp, the São Paulo State association of paint and varnish manufacturers. The association cited an increase in real estate credit and tax cuts as major factors in the increased sales, which amounted to 350 million gallons-approximately 1.3 billion liters-last year, compared with 330 million gallons in 2006. At the same time paint and coatings exports rose 14% last year to 56,000 metric tons, compared with 50,070 metric tons in 2006, Sitivesp data showed.