Brazilian PVC tubing manufacturer Tigre expects revenue growth of 15% this year due to the favorable economic environment at home and in other Latin American countries where it operates, Tigre president Evaldo Dreher told BNamericas.

Last year the company generated revenues of 2.3bn reais (US$1.29bn), flat compared to 2008. Profits were 137mn reais versus 151mn reais a year earlier.

Sales in Brazil, where the company currently has a market share of 55%, are expected to be driven by the federal government’s growth acceleration plan (PAC), in addition to a favorable outlook for the domestic economy and the 2010 elections, which will contribute to an increase in infrastructure works, according to Dreher.

Tigre is also projecting a boost in demand over the coming years as a result of projects related to the 2014 FIFA World Cup and the 2016 Olympic Games. “Those events have a date and time to begin and the whole world is watching the progress of preparation works,” Dreher said.

The company currently has a working group, acting in partnership with construction firms, to identify opportunities generated by the big sporting events to be hosted in Brazil.

Dreher also foresees consistent economic growth in the other Latin American countries where Tigre operates. “Compared to North America and Europe, Latin America has a much higher potential to recover from the global crisis,” he said.

COPING WITH THE CRISIS

In order to confront the economic downturn, Tigre implemented cost cutting measures and operational efficiency programs.

“When the signs of an upturn began to appear last year, we had already done our homework and started to see the results of the measures we implemented,” Dreher said.

According to the executive, demand suffered more in the first quarter of 2009, but from April consumption started to improve constantly.

“From September, demand was booming, which resulted in growing sales and production levels,” he added.

Tigre has 18 productive facilities throughout the Americas that together produce 300,000t/y. The company has eight plants in Brazil, two in Bolivia and one in Argentina, Chile, Colombia, Ecuador, Peru, Paraguay, Uruguay and the US.

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