Adhesives & Sealants Headlines

Brazilian Composites Industry Revenue Grows 1.4%

The Brazilian composite materials industry recently reported third quarter revenue of $407 million, an increase of 1.4% compared to the previous quarter and an increase of 9.8% over the same period last year. In addition, consumption of raw materials increased 22.3%, from 45,500 to 55,700 tons. These figures are part of the latest survey by Maxiquim, a consulting firm hired by the Brazilian Composite Materials Association (ABMACO).

The recovery is a result of the positive phase experienced by bus and truck manufacturers, according to Gilmar Lima, president of ABMACO. The transportation sector is the second-largest Brazilian consumer of composites (after the construction sector) and accounted for 16% of the total processed in the country in 2010.

“Road supplies and agribusiness are also undergoing a favorable scenario in general, as well the growing demand from the wind power generation and construction markets,” Lima said. The construction market, however, has evolved at slower-than-expected pace, due to the delayed release of funds from the government programs. “But the expectations are very positive for the upcoming months,” Lima said.

According to the survey, Brazil is expected to consume 208,000 tons of composites materials this year, a 1.8% increase over 2010. The sector’s earnings should close at $1,625 billion, 10.2% higher than in the previous year, due to the successive increases in petrochemical inputs.

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