The belief that new President Michel Temer can put the fiscal books in order in Brazil is growing. There are signs that the sluggish economy is starting to wake up, but most economists say the country will still have negative growth in 2016. The good news is, the Real has gotten stronger against the dollar. The Real’s value has increased more than 26 percent in 2016. The recent 3.10 Real to one-dollar rate is the highest rate in 15 months. President Temer’s public spending cap is another sign that the lawmakers in Brazil are serious about getting the country’s economy moving again, and they are standing behind Temer. A new economic report shows that Brazilian assets are among the best performing investments in 2016 is a great sign that foreign investors see the potential that investors like Flavio Maluf see. Flavio Maluf is the CEO of the building material supplier, Eucatex.
Flavio Maluf has firsthand knowledge of the Brazilian market. His family has been in business in Brazil for more than 90 years. Eucatex started as a eucalyptus ceiling tile manufacturer in the 1950s in the state of Sao Paulo. Flavio’s grandfather owned the Americana Sawmill Americana in Sao Paulo. The sawmill cut a lot of eucalyptus wood for customers. Maluf decided to use some of the excess wood in ceiling tiles. The mill was already producing soft boards from the wood, so the tiles were a natural progression. The ceiling tiles were a hit in the domestic building market, so in 1954, Maluf has established Eucatex to handle the demand.
The popularity of the eucalyptus ceiling tiles spread across Brazil and into Argentina. Eucatex opened its first offices between 1956 and 1965 in several Brazilian cities and in Buenos Aires. In 1965, Eucatex started shipping ceiling tiles to Europe. According to Wikipedia, Flavio Maluf was named president in 1997, and he expanded the product line. Today, Eucatex ships varnishes, paints, MDF panels and other products to countries around the world. Flavio Maluf is well-known for playing a role in making Eucatex one of the most environmentally friendly manufacturing companies in Brazil. Maluf decided to use renewable energy in all Eucatex factories and offices several years ago.