Source: Jornal do Comércio - RS, 29/04/2009

With an investment of R $ 150 million in the transfer of the graphic park in Rio de Janeiro to the Cachoeirinha unit, Souza Cruz will produce in practically all of its packaging and tips sold in Latin America in the state of Rio Grande do Sul. At the inauguration of the printing plant, which was attended by Governor Yeda Crusius, the company's president, Dante Letti, stressed that the transfer will enable the company to operate at more competitive prices, as it will be close to the production site.

The executive believes that the change of location, which will occupy an area of ​​20 thousand m², will provide greater operational efficiency, logistical integration of the production chain, expansion and modernization of the facilities. Part of the previous machinery was becoming obsolete and would undermine the company's plans to have a strong presence in the international market. The objective now is to make the plant in Rio Grande do Sul an export platform, especially due to its proximity to Mercosur.
At the printing plant, 250 jobs will initially be opened, adding up to 1.100 employees throughout the complex. One of the incentives for the move to Rio Grande do Sul was the granting of the Fund Operation Company (Fundopem) by the state government. The company will receive tax benefits for the next few years for its production in the state of Rio Grande do Sul.

Governor Yeda Crusius celebrated the inauguration of the center. "Rio Grande do Sul is beginning to reverse its difficult situation and take advantage of its growth potential," she said. The inauguration marks the completion of the company's industrial complex. Previously, the Research and Development Center had also been transferred from Rio de Janeiro to Cachoeirinha. Now, the site has, in addition to these structures, datacenters and the factory. The unit totals more than 90 thousand m² of built area and employs 1,1 thousand people.

One of the highlights of the plant is its concern for the environment. The unit is self-sufficient in thermal energy, as it uses biomass from its own renewable forests. It has rainwater capture from the roofs that is stored in an artificial lake. Effluents are treated and more than 96% of industrial waste is recycled.

The company's expansion resulted in the duplication of Avenida Frederico Augusto Ritter, the main avenue in the Industrial District of Cachoeirinha. The contact with the contractor who will do the duplication has already started, and the works will begin in the second half of October.

Dante Letti explained that the global economic crisis still does not affect the sale of cigarettes, since goods of immediate consumption have been little harmed. However, the increase in the tax burden by approximately 43% on the sector, instituted earlier this month, may harm business by smuggling and tax evasion. The results of this increase will be known in the coming months.

"We are proposing to the government to evaluate a minimum price for cigarettes, which takes into account the production costs and the tax burden, to make it more practical to inspect companies that do not pay taxes or produce without quality", defended Letti, recalling that cigarette packs that cost less than R $ 2,00 do not cover production costs and are therefore predatory prices. Souza Cruz explains that control systems like the Electronic Invoice can avoid tax evasion. Although the two main companies in the sector have 75% of the national market, they pay 98% of the Tax on Industrialized Products (IPI).