Emphasis is given to the expansion of the casting capacity with new foundry plant, and the expansion of the lamination stamping capacity and the new hydro generator factory.

Production capacity increase will reflect on the company's sales volume by the end of 2008. "We expect a growth 20% in our gross income", says Harry Schmelzer Jr., who took over the company's CEO position as from January 1st, 2008.

These projections are based on the premises that the Brazilian Gross Domestic Product and the World's Gross Product will grow at 4.3% and 4.4% respectively next year, and the exchange rates will remain close to those 2007 levels.

The investment program shall be financed with own company resources and financing with development agencies such as BNDES (Brazilian Development Bank).

"For the markets we hold business activities we believe in a continuity in the trends we have had during the last years as well as in the growing importance of energy efficiency issue as a demand growth factor of our products and the need of continuous investment in generation, transmission and distribution of electric energy in Brazil and in other countries where we are already present" says Alidor Lueders, Investor Relation Director. These are the long-term trends which shall remain as a source of growth and development.

"At the same time, we keep our strategy of continuous growth of our technological background which is added to our products. We believe that we will be able to be more competitive with increase of market share, mainly overseas, concludes Alidor.