Dexco Shuts Urussanga Plant, Consolidates Ceramic Production in Brazil Amid Efficiency Drive
- brg_news_room
- 6 hours ago
- 1 min read
Brazil: Wood panel and ceramic tile manufacturer Dexco announced the shutdown of industrial operations at its Urussanga plant in Santa Catarina, Brazil, shifting ceramic tile production to Criciúma (Santa Catarina) and Botucatu (São Paulo), under its Ceusa and Portinari brands. The company, controlled by Itaúsa and the Seibel family, said the move is part of a strategy to improve capacity utilization and operational efficiency, noting Ceusa was acquired in 2017 for approximately USD 56 million and earlier had capacity of 480,000 sq. meters per month. The closure will not materially impact financial results but will result in 159 layoffs, with 30 workers temporarily retained for inventory sales and 24 reassigned to Criciúma, while the union called the decision unexpected.
The ceramic industry faces a challenging environment with around 30% idle capacity in 2025, production down 5.8%, domestic sales down 1.4% versus the same period in 2025, and Dexco’s tile sales falling 9.9%, alongside a 30% portfolio reduction and 82% capacity utilization. The company is also optimizing operations following earlier shutdowns, including sanitary ware plants in 2025 and 2023, and the sale of its faucets and electric shower business in December 2024. Dexco continues asset rationalization to reduce leverage of 2.99x net debt/EBITDA, targeting 2.5–2.7x, supported by its Botucatu plant investment of about USD140 million.
Source: Valor International
