Flavio Maluf Builds Eucatex into a Global Building Materials Powerhouse

Since assuming the presidency of Eucatex in 1997, Flavio Maluf has transformed the family business founded in 1951 into a multinational corporation serving customers in over 40 countries across Latin America, Europe, and North America. The company now employs more than 3,500 people across five manufacturing facilities in Brazil and maintains a wholly-owned subsidiary in Atlanta, Georgia.

Family Background and Education

Born December 2, 1961, in São Paulo, Brazil, Maluf graduated with a mechanical engineering degree from Fundação Armando Álvares Penteado (FAAP) in 1985. His international experience began in 1986 when he lived in New York, studying administration at New York University while gaining work experience in the United States.

Maluf joined Eucatex in 1987, initially working in export and import operations. His responsibilities grew when he moved to the industrial division in 1989, where he managed the construction of two new factories—one for real estate paints and another for MDP panels—representing a $200 million investment.

Company Expansion and Production Capacity

The company maintains 35,000 hectares of land with 50 million planted trees, consuming 1.8 million cubic meters of wood annually. Eucatex plants approximately 6,000 hectares per year and can produce 13 million seedlings annually through its forestry operations.

Maluf’s management approach has expanded Eucatex’s product line significantly. The company manufactures:

• Flooring and laminate products
• Wall partitions and doors
• MDP and MDF panels for furniture
• Wood fiber sheets
• Paints and varnishes

Revenue distribution shows construction materials account for 44% of total sales, while furniture industry and panel resale represent 41%.

International Market Adaptation

Eucatex customizes approximately 20% of its products to match regional market preferences. For the American market—the company’s largest international customer—Maluf developed specialized products including slatted sheets, white perforated sheets for garage tool organization, and glossy sheets for blackboards.

“Based on regional characteristics, we assemble a portfolio,” Maluf explained in an interview about the company’s approach to market customization.

Maluf believes Brazil’s climate conditions provide advantages for manufacturing building materials, potentially allowing companies like Eucatex to capture larger global market share. He notes that adapting products to regional styles remains the principal challenge for growth in international markets.

Environmental Certification and Sustainability

The company received Forest Stewardship Council (FSC) certification in 1996, predating widespread adoption of sustainability standards in the building materials industry. In 2001, Eucatex became the first company globally to receive product sustainability certification from Home Depot.

Eucatex maintains ISO 14001 certification for environmental management systems. The company pioneered wood recycling operations in Latin America, currently collecting wood waste from more than 300 partner companies within a 70-kilometer radius of its Salto manufacturing facility.

The waste wood program diverts materials that would otherwise go to landfills, converting them to biomass for production processes. This approach reduces environmental impact compared to oil or natural gas combustion. Eucatex now operates one of Latin America’s largest industrial-scale wood recycling facilities.

A recent $300 million investment in the Castilho Solar Plant—the largest in São Paulo state—provides 50% of electricity for Eucatex factories, reducing carbon emissions from manufacturing operations.

Product Innovation

Maluf has focused on continuous product development throughout his tenure. Recent innovations include:

1. The Square line of Eucafloor laminate flooring, featuring 90.6 × 90.6 cm dimensions, won the “Best in Show” Award at Expo Revestir 2024 in the “Best Laminate Flooring” category. The product introduced a format previously unavailable in Brazil’s laminate market.
2. Acqua New skirting boards combine wood particles from certified forests with PVC plastic resin, creating waterproof, recyclable and durable products.
3. BP Poro SuperMatt finish, introduced in 2024, brought European wood panel technology to the Americas. The surface treatment enhances natural wood characteristics with both visual and tactile properties, minimizing fingerprints and including antibacterial and antifungal Bacterban® protection.

Management Philosophy and Daily Operations

Maluf maintains a structured schedule: four days weekly at the office from 8:45 AM to 6:30 PM, with designated meeting times for different company departments. He dedicates one day weekly to factory visits, maintaining direct contact with production operations.

His management philosophy emphasizes continuous improvement. “Dedicate yourself and seek perfection in what you do,” Maluf advised when asked about his entrepreneurial approach.

Maluf finds inspiration from a variety of sources. “The ideas come from reading magazines from the sectors that we work, from the internet, or visiting the points of sale looking at related products. Then we discuss them with the team to see which of them we carry forward,” he explained.

According to Maluf, product failure rates correspond directly to growth ambitions. He emphasizes understanding limitations rather than focusing solely on capabilities: “Recognizing your limitations is more important than recognizing your abilities.”

Digital Transformation

Eucatex launched a B2B marketplace for its products, becoming a pioneer in the flooring segment’s digital expansion. The platform receives approximately one million page views annually and 65,000 monthly visits from organic Google traffic.

Maluf cites the QlikView program for management reports as a critical tool for business performance analysis. The company uses data analytics to inform product development decisions and evaluate market trends.

Social Responsibility Programs

Maluf instituted an Environmental Education Program in 1999 that has reached over 27,000 visitors. The initiative targets public school students in municipalities where Eucatex operates, focusing on environmental preservation awareness.

The program covers fauna, flora, water resources, forestry, and waste management topics through practical demonstrations and hands-on activities. Eucatex also renovates schools and community facilities in areas surrounding its operations.

Outside Eucatex, Maluf serves as president of GrandFood Group, parent company of Premier Pet and Golden Feeds. His community involvement includes donations of medical equipment such as X-ray machines to facilities like the Idio Carli Hospital and Maternity.

Market Recognition

In 2023, Forbes Brazil placed Eucatex 81st on its Agro100 list, highlighting companies demonstrating strong performance amid challenging conditions. The ranking showed an average turnover growth of 20.2% compared to 2021 across all listed companies.

The company provided building materials for both the World Cup stadium construction and the 2016 Summer Olympics venues in Rio de Janeiro. These high-profile projects brought international attention to the company’s products, particularly its paint line.

Future Outlook

Maluf recently updated Eucatex’s mission and values statements, acknowledging that periodic reassessment remains necessary for companies with decades of market presence. The current purpose focuses on “creating solutions for the comfort and well-being of customers.”

The company continues expanding its international footprint while pursuing a balanced approach between sales growth and environmental sustainability. Maluf notes that though global emphasis on sustainability practices has increased dramatically in recent years, Eucatex’s early adoption of these principles provided competitive advantages in international markets.

Eucatex acquired a wood fiber sheet unit in Botucatu from Duratrax, trading a farm for a thin wood sheet production line. The acquisition could increase productive capacity by 70%, paper printing by 40%, and paint production by 30%.