French chemical company Rhodia announced today that it will invest US$ 41 million in their PaulÀnia factory, in São Paulo, Brazil, which is Rhodia's largest industrial complex in the country. The money will be used to increase the company's production capacity by the end of 2008.
The investment, the firm says, is in response to the growth in the Latin American market of chemical products, mainly polyamide and phenolic resins. It will allow Rhodia to meet the demand of the market growing 5 to 6% per year.
By expanding its phenol and acetone production capacities by 25% and its cyclohexanol capacity by 43%, Rhodia believes it will strengthen its leadership position in the regional intermediates market.
"We have developed very solid positions in Brazil over the 87 years we've been present in the country. Today Brazil accounts for 13% of Group sales and I am particularly pleased to announce this project which confirms our commitment to the region," said Rhodia CEO Jean-Pierre Clamadieu.
And he added: "This investment is an excellent example of our strategy of sustainable and profitable growth."
Rhodia generated sales of US$ 6.52 billion in 2006 and employs around 16,000 people worldwide. The firm is listed on the Paris and New York stock exchanges.