Business · Companies · 3 hrs ago
Dexco completes factory restructuring after closing or selling five plants
Dexco says it has finished restructuring its operations in Brazil, after closing or selling five factories over recent years.
The company makes building products, including bathroom fixtures and ceramic tiles, and says the changes were needed because demand has weakened.
It has reduced its sanitary-ware factories from five to one and consolidated ceramic-tile production into two plants.
Dexco is focusing on higher-priced products rather than competing in a crowded market for cheaper goods, where it says profit margins are too low.
The changes have reduced sales, but the company says its leaner costs have improved the margins on what it sells.
Dexco reported a third-quarter loss of R$142 million, including R$118.4 million in restructuring and closure costs.
The company says it will now work to reduce its debt burden, and its chief executive said no further cuts are currently planned.
Dexco says it has completed a restructuring that involved closing or selling five factories in Brazil.
The company says the changes reduced production capacity to better match weaker demand for construction and finishing materials.
It now has one sanitary-ware factory, down from five, and two ceramic-tile plants, down from three.
Dexco is shifting its focus toward premium products as competition and price pressure weigh on entry-level goods.
Its third-quarter results included a reported net loss of R$142 million, while its recurring net loss was R$5.5 million.
- Who
- Dexco, whose brands include Deca, Hidra, Portinari and Ceusa.
- What
- It completed a restructuring involving the closure or sale of five factories in Brazil.
- When
- The changes took place over recent years; the company said the adjustment cycle was complete in November 2026.
- Where
- Brazil, including factories in Cabo de Santo Agostinho, São Leopoldo, Queimados, João Pessoa and Urussanga.
- Why
- Dexco said it needed to align production with weaker demand and adapt to high interest rates, weak sales and price competition.
This story does not have two clearly opposing sides.
Dexco closed or sold five factories in Brazil as part of its restructuring.
The company closed its Cabo de Santo Agostinho sanitary-ware factory.
Dexco said the capacity adjustment cycle was complete.
Dexco reported a net loss of R$142 million, including R$118.4 million in losses from restructuring and closed operations.
- Factories closed or sold
- Five in Brazil
- Sanitary-ware plants
- One remaining, down from five
- Ceramic-tile plants
- Two remaining, down from three
- Third-quarter reported net loss
- R$142 million
- Third-quarter recurring net loss
- R$5.5 million
2 sources
What people are saying
Encerramos um ciclo de ajuste de capacidade e de mudança de estratégia. Como um todo, o negócio está bem ajustado.
Estruturalmente, não há nada à frente que estejamos considerando fazer.
Eram operações boas, mas não cabiam mais considerando o tamanho do mercado.
O mercado está com muito estoque e capacidade de produção ociosa. A margem de lucro no produto de entrada é baixa, insuficiente.