Eucatex knows how to export. The company has been exporting building products made from eucalyptus wood since the 1960s. Flavio Maluf, the CEO of Eucatex, believes exporting is the main reason his company has enjoyed incredible growth over the last ten years. Even though Brazilian sales were off in 2014, the company still outperformed itself in 2015 thanks to fiberboard and T-HDF exports. Even the paint division had a slight increase thanks to sales in stores like Home Depot in the United States.
It’s been a challenging road for CEO Maluf. Brazil is not the easiest country to do business in, and it’s not the easiest country to export from due to vacillating government restrictions and currency fluctuations. Maluf’s job is to make sure his executives know the foreign currency exchange market as well as the building supply market. Pricing new products is always a challenge when your competition uses dollars instead of reals as their currency base. The dollar-real exchange rate has been on a roller-coaster ride for years, and that has made Maluf accomplishments even more incredible. Maluf is an engineer, but he is also a savvy businessman that has built a small business into a worldwide competitor in the building supply industry.
The question on the minds of some industry experts is, can Eucatex continue to grow? The answer lies in the product line. The company’s product line is so diversified that weak sales in one product area doesn’t affect sales in another. That fact is obvious from the second quarter results. Eucatex is not just a Brazilian company. With offices located around the world, and a product line that caters to big as well as small builders, Eucatex should continue to dominate the building supply export business in Brazil. The company has experience, confidence and a group of executives that understand the global market as well as they understand the Brazilian market. Maluf and company have the eucalyptus tree to thank for some of its success, but most of the credit for their consistent growth goes to their 2,300 employees.