By Brazil Stock Guide – Dexco S.A. (DXCO3), the Brazilian building-materials group formerly known as Duratex, confirmed it will shut industrial activities at its ceramics plant in Urussanga, a small manufacturing town in the southern state of Santa Catarina, as part of a broader plan to improve efficiency and profitability across its asset base. The company said production will be concentrated at its units in Criciúma, also in Santa Catarina, and Botucatu, in São Paulo state.
In its official market notice, Dexco said the decision is part of a strategy to improve the use of installed capacity, raise productivity and increase operational efficiency. The company also said the shutdown will not change the portfolio of its ceramics division, the operation of the Portinari and Ceusa brands, or its commitment to customer service.
The official statement does not disclose the number of affected workers. But according to Ceramics and Civil Construction Workers Union, the Urussanga unit has 213 employees. With the closure, 159 workers will be laid off, 30 will remain temporarily to sell products still available at the site, and 24 professionals will be invited to transfer to the Portinari unit in Criciúma.
Dexco said the closure will not have a material impact on its results and that the related effects will be classified as non-recurring. For investors, the message is one of industrial discipline, asset rationalization and margin protection. For Urussanga, however, the decision carries a broader local cost: fewer jobs, lower household income and a smaller industrial base for a city whose economy had long been linked to the plant.
Dexco is listed on Brazil’s B3 stock exchange under the ticker DXCO3. Its control is held by the Itaúsa block — including Itaúsa S.A. and members of the Setubal and Villela families — and the Seibel block, linked to members of the Seibel family. According to Dexco’s investor-relations website, the two blocks hold respective stakes of 40.8% and 20.4% in the company’s capital.
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