Wood gains strength in Brazilian civil construction

Montana Química, a Brazilian multinational and one of the references in the treatment, protection and preservation of wood, recorded a 12.9% increase in its gross revenue in one year, rising from BRL 363 million in 2021 to a record BRL 410 million last year. On the eve of completing 70 years, the company foresees a leap in its segment in this decade, with the growing strength of wood in civil construction in the country.

“What was uncommon five years ago has become a trend today. Brazil is starting to follow in the footsteps of the world in a real revolution, which is the use of wood in civil construction”, says Andreas von Salis, superintendent director of Montana Química. “It is something we have always dreamed of, as wood is our core business: we have worked for decades to reach this level and we are highly prepared for this new market requirement.”

The GDP (Gross Domestic Product) of civil construction registered a growth of 17.7% between 2020 and 2022, more than double that registered in the country in the same period: 8.2%, according to the IBGE (Brazilian Institute of Geography and Statistic). “During the pandemic period, the sector showed resilience and a high capacity for adaptation”, says the Montana Química executive, who in 2022 achieved adjusted EBTIDA (earnings before interest, taxes, depreciation and amortization) of 14.4%, 0. 6 percentage points lower than the target for 2025.

Still according to IBGE data, the area of ​​planted forests in the country reached 9.5 million hectares in 2021, with an increase of 23.7% in the value of production for commercial purposes in just one year. The data is an important thermometer to measure the participation of wood in the civil construction market.

wood myths

“The Brazilian market realized that wood is not just a sustainable material. It also allows for cleaner and faster works, lower energy consumption, very high constructive and fire safety and visual and thermal comfort”, says the superintendent director.

According to him, professionals and consumers have already left behind some myths that wood carried. “In the words of today’s world, ‘fake news’ was created regarding this material. For example, that the use of wood diminishes forests; that wood catches fire easily; or that a wooden house might collapse because of termites. The technologies of the sector, today, throw these lies to the ground.”

So much so that companies, including startups, and investors are in a real race in the area. In the country, there are projects for the construction of buildings and condominiums with engineered wood; companies in several states already specialize in the construction of modular wooden houses; and even the Minha Casa, Minha Vida housing program already has developments with this material.

The country has a housing deficit of 5.8 million homes, according to a survey carried out by the João Pinheiro Foundation in 2019. “There is no doubt that wood and all the new technologies that accompany it in civil construction will open up new possibilities for the market. Brazilian, both for the economic and social development of the country”, added Salis.

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