Brazil's Cecil readies aluminum plans

Brazilian copper producer Cecil is diversifying its portfolio and plans to expand its operations in the domestic market after an acquisition in the local aluminum segment, according to a report.

Last November, Cecil acquired aluminum products manufacturer Elfer, which has a plant in São Paulo state's Pindamonhangaba with installed capacity of 60,000t/y.

"We have the best expectations, and our focus is to expand the Elfer business due to the human, technological and financial capital contribution that we are going to make," Cecil CEO Miguel Angelo de Carvalho was quoted as saying by paper DCI.

With the acquisition, Carvalho highlighted opportunities in the automotive, rail and mining sectors. "It's not yet possible to talk about market shares, but we can say that these three sectors will be priorities."

According to the CEO, Cecil has major competitors in the domestic market, such as copper producers Paranapanema and Termomecânica, with the latter recently entering the aluminum market. "Currently, our market share in the country is 42%," Carvalho said.

At the time of the Elfer acquisition, Carvalho told paper Valor Econômico that the deal would allow Cecil to double a supply contract with its main customer, Novelis.

"With Elfer's plant, we can supply parts for the energy, transportation and defense sectors," he said, adding that potential new clients include Iveco and Alstom, according to the report.