Cikel consolidates, invests in service

HomeNewsCikel consolidates, invests in service

MIAMI—Cikel America has announced a series of moves taken by its parent company in Brazil strategically designed to streamline production and boost capacity for 2011.

Cikel will close its manufacturing facility in southern Brazil and transfer its technology and machinery to its northern facility in Belem, noted George Celtrick, director of sales for Cikel America. Cikel’s offices in the south of Brazil will remain in operation.

The news is bolstered by Cikel’s disclosure of capital improvements in excess of $42 million—including upgrades in finishing capabilities, infrastructure and machinery—designed to boost capacity and production by 50% through 2011 and beyond. With the major increase in production due largely to the transfer of finishing machinery in the south to the Belem facility, Cikel has plans to match its new capabilities by doubling harvesting efforts in the same year.

Cikel’s entire manufacturing process will now be closer to its 1.2 million acres of privately owned and FSC-managed forests in Brazil. “This will enhance logistics with improved access to supply and faster, more direct transportation routes for distribution,” he noted. In addition, Celtrick said this will allow Cikel America’s wholesale distribution customers to better control inventory and manage cash flow, translating into improved service.

For more, call 800.971.7896.

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