Duratex

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Commitment to
Transparency

In order to strengthen our strategic vision in the long term and present the process through which we create value for society, we presented our first Integrated Report, in line with the guidelines of the International Integrated Reporting Council (IIRC).

This is the result of headways made along the year, thus corroborating our commitment to transparency and accountability: for over 15 years we have published the performance and results of our operations, the challenges faced and opportunities seized, in addition to the targets and strategies set based on the purpose of offering Solutions for Better Living.
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Enjoy your reading!

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Taking care of our People, our Processes, our Customers and our Results is part Duratex Way of Being and Doing and, In view of the pandemic caused by the novel coronavirus (COVID-19), it could not be different! We are alert, assessing the scenario and implementing actions on a daily basis, in line with the guidance of the World Health Organization (WHO) and government authorities.

For the purpose of combating the vírus, preventing impacts on the health and safety of our employees and partners, and keeping our commitments to consumers, we are working in a number of fronts of actions.These actions are detailed on here.

We are thankful for the engagement of all workers (our employees and partners) who keep on with us with the Mãos à obra para vencer o vírus

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Portfolio

We are an integrated business platform, focused on offering Solutions for Better Living.

Wood division

It covers the brands Durafloor, under which wood laminate floors and vinyl flooring from 100% recyclable PVC are sold, and Duratex, which is responsible for the manufacturing of raw and coated MDP and MDF panels used in the furniture and civil construction industries and have high machining capability.

Deca division

Under the Deca e Hydra brands, it manufactures washbasins for commercial and residential bathrooms and sinks for kitchens (stainless steel sinks), toilets for commercial and residential bathrooms, electric and gas showers, valves for discharging the water systems of toilets, faucets for bathrooms and kitchens, among other related products.

Ceramic Tiles division

It produces polished porcelain to be used in the driest rooms of houses, such as living rooms, corridors and bedrooms, tiles for different uses, and special coatings, with exclusive designs and 3D technology.

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Strategic
Moves

In the Wood division, we completed the process of divestment in assets based on the identification of our vocation for manufacturing. Therefore, we closed the panel unit in Botucatu (State of São Paulo) whose operation has been suspended since November 2018, and we negotiated forest assets in the central region of the State of São Paulo.

In the Deca division, we discontinued the sanitary ware unit in São Leopoldo (State of Rio Grande do Sul) and kept the production capacity after transferring the machinery to other plants of the division.

In the Ceramic Tiles Division, we entered into the acquisition agreement of Cecrisa Revestimentos Cerâmicos S.A., after which we started to hold the Portinari brand, and increased our capacity by 20 million sq. m. We concentrated the industrial activities of the division in the State of Santa Catarina, where the main plants of this segment were located.

With a view to new challenges, we have completed the feasibility analyses of engineering studies and negotiations with Lenzing AG to set up a joint venture, LD Celulose, in the dissolving wood pulp (DWP) segment. The works of this plant started in 2020 in the State of Minas Gerais.

We have restructured our Innovation Center to better disseminate this topic among our staff. Externally, we sought proximity with startups e scale-ups, some of which became our partners in the implementation of innovative project.

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Strategic Approach

Strategy with focus on people. Accordingly, we seek to come closer to customers and consumers to get to understand their demands.Internally, we understand that talents are our strength and, therefore, we have been carrying out a wide review of our culture, with investments aimed at high performance.

Strategy with focus on people

We are guided by financial results and environmental and social efficiency. For this reason, we invest in rigorous process management by means of the Duratex Management System (SGD), which has been increasingly stronger year on year as a tool that provides us with increasing intelligence and security in operations.

We are guided by financial results and environmental and social efficiency

Cash generation and funding in order to bring business and customers closer based on the restructuring of the credit process and digital technologies, leverage sales with risk control and extend debts with differentiated costs and leverage opportunities.

Cash generation and funding

Business development, which includes the search for accuracy in the consolidation of our results as a leverage to accelerate the decision-making process, as well as the management of market corporate intelligence, seeking to map trends, evolve in the competition context and in products and sector actions, in addition to the development of simpler processes (SSC) and efficient management solutions.

Business development

Consolidation and stabilization of the internal control and Compliance, as a reflection of the dissemination of the Code of Conduct and internal policies, and of the definition of the risk appetite in line with the senior management.

Consolidation and stabilization of the internal control and Compliance

Supplies with competitive advantages, focused on negotiation and procurement processes, concentration of activities (SSC) and structured and standardized actions.

Supplies with competitive advantages

Digital transformation in order to ensure the constant update of our technological complex in view of the needs of each business, digital innovations and disruptive technologies.

Digital transformation

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Strategic Agenda by Division

Wood

Commercial strategy focused on distinctive products;

cost reduction based on the identification of our vocation for manufacturing and verticalization (forest units);

optimization of assets with highest added economic value.

Deca

operational and logistics efficiency from the consolidation of the transfers of production lines and optimization of teams and processes;

acceleration of the innovation process;

increased increase of market intelligence, with projects in progress;

people management;

commercial performance with excellence from the structuring of the channel intelligence department and guided by the obtainment of synergies between brands.

Ceramic tiles

Ceusa and Portinari brands with their differentials aimed at products with increased value added;

centralization of administrative and commercial processes;

optimization of processes and plants;

adjustment to the Duratex Management System (DMS) standards.

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Looking at the Future

We are continuously expanding our business and areas of operation.We are currently revisiting our Sustainability Strategy. This work is aimed at strengthening our focus on inspiring ambitions, based on the purpose of offering Solutions for Better Living.

For that, we count on the engagement of the Executive Board, the Sustainability Committee and the Board of Directors to build our journey and new strategic guidelines, in line with the Sustainable Development 2030 Agenda.

Our intention is reframing the way we understand sustainability and revalidate the materiality of priority topics in our business, starting to work with a focus on the intensification of the positive impact of our operations in the coming years.