Votorantim Cimentos Announces Investment in Expansion, Modernization, and New Ventures in Brazil

Votorantim Cimentos, a leader in construction materials and sustainable solutions, plans to invest in Brazil, focusing on expansion, modernization, logistics, and new business ventures.

Votorantim Cimentos Announces Investment in Expansion, Modernization, and New Ventures in Brazil
Photo by Tatiana Reusche / Unsplash

Brazil - Votorantim Cimentos, a global leader in construction materials and sustainable solutions, has announced a comprehensive R$ 5 billion investment program aimed at enhancing the growth and structural competitiveness of its operations in Brazil. This program, which already has R$ 1.5 billion in progress, spans the company's operations across all regions of the country. The investments are strategically directed towards increasing competitiveness, coprocessing capacity, and significantly reducing CO2 emissions. With these investments, Votorantim Cimentos will add an additional 3 million tonnes per year to its cement production capacity in Brazil.

A significant portion of the investment, R$ 300 million, is allocated for expanding the production capacity of the company's plant in Salto de Pirapora, São Paulo. The construction of a new cement grinding unit will increase the plant's production capacity by 1 million tonnes per year. Along with another operation in the nearby Santa Helena neighborhood, the Salto de Pirapora facility forms the Salto-Santa Helena complex, which will see its production capacity expanded by approximately 20%. The construction is scheduled to begin in the first half of this year and is expected to be completed by the second half of 2025.

Osvaldo Ayres Filho, the global CEO of Votorantim Cimentos, emphasized that the expansion aligns with the company's strategy and is part of a broader investment plan. This plan aims to strengthen the company's market position, enhance competitiveness, and advance the modernization of its units, reinforcing its decarbonization agenda. The company remains committed to meeting the market demand in São Paulo and the Southeast region, contributing to the development of the area and the country.

The expansion and modernization project at the Salto de Pirapora unit incorporates the latest concepts in mining efficiency, energy, and industrial automation, including the acquisition of state-of-the-art equipment. The investment plan also encompasses logistics, with automation, new distribution points, and extensive use of artificial intelligence. Additionally, it accelerates new ventures like Motz (logtech and digital transporter), Verdera (waste management and coprocessing), and Viter (agricultural solutions).

Ayres highlighted the company's solid financial position, low debt, and extended debt profile, providing flexibility to pace these investments as projects mature, without compromising capital allocation discipline and financial health. The investment in existing operations (brownfield) maximizes operational leverage and offers more attractive returns with a controlled risk profile.

As part of this plan, Votorantim Cimentos recently announced a 15-year Power Purchase Agreement (PPA) to supply 100 MW of solar energy from 2026. This contract will support the company's structural competitiveness growth, including the Salto de Pirapora factory expansion, and increase the percentage of energy consumed from renewable sources (hydroelectric, wind, and solar) to 75%, contributing to the decarbonization agenda and ESG (Environmental, Social, and Governance) goals.

Source: Revista LIDE