The Humble Beginnings Of Eucatex

In Brazil, everyone knows the name of Eucatex. A company known for it’s place in the paper industry. Founded by the Maluf family in the city of Salto, and Sao Paulo. A family run business began in November of 1951. It opened its first factory in 1954. Using the Eucalyptus trees and producing acoustic ceilings and wooden fiber plates. It wasn’t long before it ventured into producing insulation and acoustic plates.

In 1965, they began offering export to Europe and continued to expand so by the 1970’s they had opened more factories that produced not only plates and ceilings but the paint to use on them. They continued to invest and grow to expand and open more factories that the hard plates were created. In Barueri, Sao Paulo, they opened a plant dealing with metals. It was in Salto that they opened their newest factory. This opened more doors to experiment and develop inventive labs for a new line of varnishes and paints.

Succeeding lucratively, they continued to experiment with different products made from the Eucalyptus wood. With that, they planned for the future by opening two plants that all together have over 10,000 hectares, (a metric unit of square measure, equal to 100 ares (2.471 acres or 10,000 square meters)of grounds and nurseries to continue growing Eucalyptus plants. This assures them, they will have plenty of product to use in the future.

Their success has helped employ over 3000 people and their product line now includes ceilings, doors, floors, partitions, particle boards and more. Their products are shipped to over 40 countries across the globe.

The Brazilian entrepreneur Flavio Maluf, the president of Eucatex, shares some important points to be successful and profitable, while going international with your business. Mr.Maluf is a mechanical engineer who graduated from FAAP in Brazil. He took his place in the family business in 1987 and worked in the trade division. He expanded his knowledge by including the industrial part of the business and in 1997, the family agreed to make him president of the family company. Because of his success, he gives you a few tips to remember:

  • Study and know your target market
  • Act as the local market, but think globally not always what works in their country will result in success abroad
  • Seek help from a global consultancy is essential to seek help from a global consultant or an expert in the country to detail the best strategies within what you want to accomplish
  • Seek help from a global consultancy is essential to seek help from a global consultant or an expert in the country to detail the best strategies within what you want to accomplish
  • Hiring and training of a specialized team The people you hire will need to be qualified and to understand the international market.
  • Analyze the logistics sector Check customs barriers, taxes collected, the local laws of the country, the logistics of goods and services, among others.

Flavio Maluf states on Twitter that each tip is important to build your business, but consider enlisting experts in the field to prepare you better.  Flavio is well known for Rubbermaid analysis, as he talks the major merger going on there.  Just as Flavio Maluf was called upon by the chemical industry, to break down the Dupont and Dow merger.