Sector News

Brazil's Nexa mulls Asia office to tap China zinc market: CEO

November 24, 2017
Chemical Value Chain

Brazilian miner Nexa Resources Inc will likely decide this year to open a sales office in Asia as it looks to grow its customer base in China and the region, its chief executive told Reuters on Thursday.

Nexa, a top-five global zinc producer, sees opportunities to sell more zinc and copper in China as the country rolls back its own production in a bid to reduce air pollution, Tito Martins said in an interview, less than a month after the company’s $496 million initial public offering.

“Entering the Asian market has been a challenge for us,” said Martins, former chief financial officer of mining giant Vale SA. “It is very likely that we will decide to open a commercial office in the region.”

Martins said there had been a lack of zinc concentrate in the market and expects global prices for the commodity to remain at or above their current levels for the next two years.

Zinc prices are currently around $3,200 per tonne, highs last seen in 2007.

Nexa’s capital spending next year is likely to be in line with 2017 at around $200 million, Martins said, although the company has yet to set official targets.

Its main focus is opening its Aripuana zinc mine in Brazil by 2020 and Shalipayco mine in Peru by 2021, he said, along with improving the capacity of existing Peruvian operations.

The company does not rule out growth through acquisitions, although it is not considering any deals at the moment, he said.

Earlier this month, Nexa posted its first financial results since the IPO, with third-quarter net income rising 67 percent from a year earlier to $81 million.

By Marta Nogueira;

Source: Reuters

comments closed

Related News

November 28, 2021

Synthomer appoints new CFO

Chemical Value Chain

Synthomer announced the appointment of Lily Liu as Chief Financial Officer (CFO). Lily will take up the role no later than 1 July 2022, succeeding Steve Bennett who announced in August 2021 that he would step down once a suitable successor was in place.

November 28, 2021

Westlake to acquire Hexion’s epoxy business for $1.2 billion

Chemical Value Chain

Westlake Chemical (Houston, Texas) has reached agreement to acquire Hexion’s (Columbus, Ohio) epoxy business for approximately $1.2 billion. Westlake says the deal enhances chlorine and olefins integration and brings attractive opportunities in high-growth epoxy markets, including wind turbine blades, automotive lightweighting, aerospace and consumer coating applications.

November 28, 2021

Tetra Pak and Appetite Creative drive brand-consumer engagement with gamified carton experiences

Chemical Value Chain

Tetra Pak Iberia is launching a gamified app experience in partnership with digital studio Appetite Creative. The technology is enabled though scannable QR codes printed on drinking cartons and available to all brands in Southern Europe.

Send this to a friend