EUCATEX S.A. INDÚSTRIA E COMÉRCIO Corporate Taxpayer ID (CNPJ/MF): 56.643.018/0001-66

Company Registry (NIRE): 35.300.028.015

Publicly Held Company

MATERIAL FACT

São Paulo, January 31, 2018. Eucatex S.A. Indústria e Comércio ("Eucatex" or "Company") (B3: EUCA3 and EUCA4) informs the general market that, on January 31, 2018, the Eucatex Group entered into a binding proposal accepted by Duratex S.A. involving the exchange of assets between the companies. The transaction is based on the amount of R$60 million.

The Eucatex Group will receive from Duratex facilities and equipment for the manufacture of thin fiberboard sheets (wet process) located in the City of Botucatu, State of São Paulo, where its MDP and Laminated Flooring unit and most of it forest assets are already located.

Duratex will receive from the Eucatex Group a farm called the "Vitoria Farm" located in the City of Capão Bonito, State of São Paulo. This farm is currently situated outside the ideal supply radius of its manufacturing units located in the cities of Salto and Botucatu, State of São Paulo.

The supply of wood to this new production unit will come from owned and third-party forests, including those of Duratex, with which it will enter into a supply agreement for up to 7 years, which will enable the unit to operate at its full capacity of 200,000 m³/year, if there is demand.

Based on the current legislation, consummation of the transaction is subject to approval by Brazil's antitrust agency CADE (Conselho Administrativo de Defesa Econômica). While this approval is pending, the lines will remain under management of Duratex S.A.

With the new thin fiberboard sheet unit (wet-lap process), the Eucatex Group will serve clients in Brazil and abroad that it currently is unable to serve with its current products, which will further solidify its position in an increasingly globalized market.

José Antônio Goulart de Carvalho

Executive Vice-President and Investor Relations Officer

EUCATEX S.A. INDÚSTRIA E COMÉRCIO

Eucatex SA Indústria e Comércio published this content on 31 January 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 31 January 2018 23:04:04 UTC.

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