In alignment with its Structured Expansion and Diversification Plan (see the chapter Strategic Management for more information), Eternit is Brazil’s largest and most diversified roofing materials manufacturer. Its operations include the mining and marketing of chrysotile asbestos and the production of fiber-cement roofing tiles (with and without chrysotile), concrete roofing tiles, construction solutions (wall and cement cladding panels) and polyethylene water tanks. The Company also resells its own and third-party products (metal roofing tiles and metal frames, bathroom chinaware and toilet seats, bathroom and kitchen metal fixtures and roofing accessories).
Eternit’s customers enjoy a range of training systems and tools related to construction that make the activities of those working in the industry much easier. The company’s website (www.eternit.com.br) offers two tools to help users choose the materials. Etertools enable users to compare various models of fiber-cement roofing tiles based on their needs. Meanwhile, Etercalc not only informs the type of fiber-cement roofing tile best suited for their project, but also calculates the amount of material required.
Seeking to continually improve its processes and automate its production, efficiency and quality controls, in 2013 the Company implemented new systems integrated to the SAP-ECC: Manufacturing Integration Intelligence (MII), Overall Equipment Effectiveness (OEE) and the Quality Management (QM) module.
The roofing segment is one of the largest markets in Brazil’s construction industry, with annual demand of over 600 million square meters. Fiber-cement roofing tiles and concrete roofing tiles account for around 50% of this market, in which the Company is the leader, with market shares in these segments of around 31% and 30%, respectively. SAMA is the world’s third largest chrysotile asbestos mining company, accounting for 15% of the annual world supply of 1.9 million metric tons. In 2013, the Company accounted for 100% of sales in the Brazilian market, due to its strategy of prioritizing the supply of the domestic market, which is more profitable, and then exporting the surplus.
After just 5 years operating in the bathroom chinaware segment, Eternit already holds an important position in the Brazilian market and has surpassed traditional players in this industry. In 2014, the joint venture Companhia Sulamericana de Cerâmica (CSC) will launch operations in the bathroom chinaware segment. The plant will have initial production capacity of 1.5 million units/year. The initiative combines production technology, low production costs and experience in the development of products and markets of Colceramica – a company of the Organizações Corona, which holds a 40% interest in the new unit, with the local knowledge, strong distribution network, efficient logistics, brand strength and investment capacity of Eternit, which holds a 60% interest.
Located In Minaçu, a city in the northern region of the state of Goiás, SAMA is the only chrysotile asbestos mining company in Latin America and the world’s first to obtain both ISO 14001 and OHSAS 18001 certification. In addition to its good environmental, social, health and safety practices, SAMA is also recognized for the quality of the fiber it produces and the reliability of its delivery anywhere on the continent.
Characteristics such as inflammability, resistance and durability give the mineral the ideal conditions for use in the construction industry, and chrysotile asbestos fiber is the main raw material used to make fiber-cement products. The composition of the mineral that is available in Brazil, which is known as white asbestos, does not pose significant risks to human health at exposure levels below 2 fibers/cm3. To guarantee the health of its employees and customers and to preserve the environment, Eternit operates with maximum concentrations of 0.1 fiber/cm3, which is 20 times lower than the legal tolerance limit.
The world’s third largest mining company in operation, SAMA has annual production capacity of 300,000 metric tons. Annual rock handling, including mineral and overburden, is 4.95 and 15.5 million metric tons, respectively, with the fibers corresponding to 6.8% of the mineral removed. At current production levels, the mining company projects an approximate life span of another 19 years for the deposit.
Fiber-cement is composed mainly of chrysotile asbestos, which ensures its durability. Eternit holds 31% of Brazil’s fiber-cement roofing tile market. Its four plants and its subsidiary Precon Goiás have combined annual production capacity of 1 million metric tons; installed capacity utilization stood at 80% in 2013.
The Company also manufactures products made of chrysotile-free fiber-cement to meet the needs of specific customers and markets. Its industrial facilities are also being adapted for this manufacturing model in order to provide solutions to various types of customers. All plants are certified by DNV Veritas in the standards ISO 14001 and OHSAS 18001.
Eternit strives to stay ahead of needs and trends to offer the market unique products that combine sustainability and high performance. In the construction solutions segment, it offers items such as the Eterplac cement cladding panels and wall cladding panels, which ensure faster construction without waste, while also being resistant, durable, easy to handle and very versatile, featuring a wide range of applications and finishings. It also produces metal frameworks, a solution that replaces the wood used in roof structures, which ensures a more durable roof, while reducing the use of natural resources as well as costs.
With annual production capacity of 10 million square meters, Tégula maintained its leadership in Brazil’s concrete roofing tile market in 2013, with market share of 30%. Production of the tiles is fully automated and the products come in a wide range of profiles, finishings and colors. Since 2011, the Company also markets, among other items, wood certified by the Forest Stewardship Council (FSC®) for the construction of wood roof frameworks.
Extrusion and separation: a special machine forces the cement paste through an extrusion process to acquire the desired tile format. The units are then separated for the finishing stage.
Portfolio with
over 30 product
lines
To offer complete solutions and always stay ahead of its clients’ needs, Tégula invests in research to anticipate trends. In addition to developing technologies, it maintains permanent contact with the market through the architects’ club. These strategies result in a portfolio offering with over 30 product lines.
One of the highlights is the evacuated tube solar collector Sunmax, which is easy to install and has greater capacity to absorb solar irradiation, in addition to other advantages. Another product launched in 2013 is the Tégula Prime tile, a premium product with a unique finish that prevents the formation of fungus and lends greater durability to the roof.
Eternit has already consolidated its presence in the bathroom chinaware market and its importance in the industry continues to grow. It still uses third-party producers, but all of its production will be in-house by 2014, once its new plant of Companhia
Sulamericana de Cerâmica S.A. (CSC) is completed.
Operating in the metal bathroom fixtures market since 2012, Eternit currently offers items for kitchens, bathrooms and external areas that including shower heads, faucets, valves and other products. The product portfolio, which ranges from budget to luxury offerings, meets the needs of different customer profiles, always with the quality of the Eternit brand.
Easy to handle, Eternit’s polyethylene water tanks are produced at the Rio de Janeiro unit through a process that consists of injecting polyethylene into molds, followed by heating, cooling and finishing processes. The model ensures a high-quality final product that complies fully with the requirements of the Brazilian Technical Standards Association (ABNT).
