Duratex Gains on Plans to Invest $753 Million in New Plants
Duratex SA (DTEX3), a Brazilian producer of wood panels and bathroom fixtures, gained after saying it will invest 1.2 billion reais ($753 million) in two new wood panel plants.
Shares rose 1.7 percent to 16.52 reais at the close of Sao Paulo trading at 4:15 p.m. New York time, the most since April 7. The Bovespa index tumbled 1.9 percent to 65,415.49.
“Demand for wood panels in Brazil has grown faster than the country’s GDP and is likely to keep growing,” Armando Halfeld, an analyst at Rio de Janeiro-based Ativa Corretora, said in a telephone interview. “The company is getting ready for this increasing demand and that’s positive news.”
One of the plants is scheduled to begin operating by the end of 2012 while the other is planned for the end of 2014, Duratex said in a regulatory filing.
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