investment opportunities in bahia an...
TRANSCRIPT
Investment Opportunities in Bahia
An Overview
Bahia – Economy Overview
Industry - Opportunities
Infrastructure
Education and Technology
Government Services
Benefits and Incentives
AGENDA
BAHIA – DEVELOPMENT STRATEGIES
New policy for industry, commerce and services
Attraction of new investments
Consolidation of production chains
Economic decentralization (sectors and regions)
Incentives programs (DESENVOLVE, PROAUTO, PRONAVAL etc.)
Federal Government investments (PAC) | infrastructure, housing and sanitation
GDP growth rate (%)
Source: SEI / IBGE
(**) Estimates
BAHIA | AN OVERVIEW
5,3 5,2
2,2
7,5
2,0
3,7
6,1 5,2
-0,3
7,5
2,8 4,0
2007 2008 2009 2010 2011* 2012**
Bahia Brasil
Population:14 million
1st in the Northeast and 4th in Brazil (2011)
GDP PPP (2010): US$ 93 billion
1st economy in Northeast (2009) | (31.3%)
6th economy in Brazil (2009) | 4.2%
South America - between Peru and Ecuador (2010)
World – equivalent to Serbia and Croatia (2010)
World Trade (2011)
Exports + Imports = US$ 18.7 billion
47% of Northeast and 4% of Brazil
Job Creation (2011)
76 thousand new jobs
2nd best in Northeast and 8th in Brazil
INDICATORS
BAHIA
SOUTH
AMERICA
BRAZIL
AREA: 564,692 km2 (6.6% of Brazil)
COASTLINE: 1,188 km
CITIES AND TOWNS: 417
URBAN POPULATION: 72 %
GREATER SALVADOR: 3.57 million
BAHIA | AN OVERVIEW
WORLD TRADE | 2011
Region Exports Imports
European Union 29% 11%
Asia 24% 17%
Nafta 16% 17%
Mercosul 14% 17%
Latin America (others) 6% 18%
Rest of the World 11% 20%
BAHIA | AN OVERVIEW
Food & Beverage
Paper and Cellulose
Refining
Chemical Products
Rubber and Plastic
Minerals (non-metallic)
Metallurgy (non-ferrous)
Vehicles
14.1%
5.4%
33.0% 21.6%
6.0%
1.7%
10.3%
7.9%
ECONOMIC ACTIVITY| 2010
BAHIA | AN OVERVIEW
Greater
Salvador
GDP (Industry) – US$ million
40 (average)
40 - 140
140 - 240
0 - 40
240 - 340
340 - 3400
Source: SEI
INDUSTRIAL PROFILE |
2010
São Francisco Valley
Extreme
South
West
GDP (Agriculture) – US$ million
0 - 40 20 (average)
20 - 40 40 - 60 60 - 80
80 - 160
INDUSTRIAL PROFILE | 2010
Source: SDE/SICM Investments | 2007-2011 | US$ 7 billion
Total Investments (2007 - 2015) | US$ 43 billion
** Metal products, Wood products, Metallurgy,
Machinery, Electrical Appliances, Shoes and
Leather, Textiles etc.
Mining
Energy
Oil and Biofuels
Naval and Nautical
Chemicals and Petrochemicals
Food and Beverage
Automotive
Paper and Cellulose
Minerals (non-metallic)
Commerce and Services
Other Segments**
26.9%
25.5%
5.8%
8.4%
6.5%
1.9%
6.7%
11.6%
1.5%
1.4%
3.8%
460 industries
US$ 36 bln investments
60,000 jobs
PRIVATE INDUSTRIAL INVESTMENTS | 2012 - 2015
BAHIA | AN OVERVIEW
China
Agribusiness,
Automotive, Mining
Spain
Renewable Energy
France
Renewable Energy,
Chemicals
Portugal
Textiles, Chemicals,
Construction
Netherlands
Agribusiness,
Chemicals
Belgium
Renewable Energy,
Chemicals
Italy
Metal-mechanic,
Renewable Energy,
Chemicals, Automotive,
Furniture, Leather
Mexico
Agribusiness,
Chemicals
Australia
Mining
USA
Agribusiness,
Renewable Energy,
Chemicals,
Automotive,
Cosmetics
Germany
Renewable Energy,
Automotive
Switzerland
Agro-industry,
Renewable Energy
PRIVATE INDUSTRIAL INVESTMENTS | COUNTRY OF ORIGIN
BAHIA | AN OVERVIEW
Finland
Cellulose
Canada
Mining
Japan
Automotive,
Electronics,
Shipbuilding
PRIVATE INDUSTRIAL INVESTMENTS | COMPANIES
BAHIA | AN OVERVIEW
Agribusiness
Mining
Oil/Gas/Petrochem
Automotive
Renewable Energy
MAJOR INDUSTRIAL SECTORS
BAHIA | AN OVERVIEW
Electronics & IT
OIL / GAS / PETROCHEMICALS
Production
Oil – 47,500 bpd (most from mature oil fields), with
locally developed technology.
Gas – 7 million m3/day
Transport and Distribution
Bahiagás – one of the largest gas distributors in Brazil,
with expansion plans to countryside, commercial and
residential areas
LNG regasification terminal to be built by Petrobras
(2013) - 14 million m3/day
Refining
2nd largest refinery in Brazil (> 320 k bpd)
Upcoming Petrobras investments
US$ 127.5 billion in oil & gas exploration
and production
US$ 74.4 billion in refining
GASENE
1500 km
Camaçari Petrochemical Complex
Largest integrated petrochemical
complex in Latin America
Braskem is the largest company
5th largest petrochemical company
in the world
Most 1st and 2nd generation petrochemicals
34 companies (BASF / Monsanto / DuPont)
CETREL – Integrated residue treatment
New investments
BASF – Acrylics complex
SNF Floerger – Polymers for oil industry
Duroline – Carbon fiber
OIL / GAS / PETROCHEMICALS
Enseada do Paraguaçu Shipyard
Private Consortium: Odebrecht/ OAS
/UTC / Kawasaki
Area of 120 ha
US$ 1.25 billion investment
In operation: Jan/2014
FPSO and drilling rigs
Large cargo and container ships
Petrobras will keep building modules
for oil rigs at its existing facilities
OIL / GAS / PETROCHEMICALS
Potential at 70m – 15,000 MW
10% of Brazil and 19,3% of Northeast
Projects being implemented
2009 – 390 MW;
2010 – 587 MW;
2011 – 414 MW (1st auction)
Investments of US$ 3.4 billion
Proposed projects
1,500 MW awaiting 2nd auction in 2011
20,000 MW under development
Wind power industry
Manufacturers in Bahia:
ALSTOM
GAMESA
GENERAL ELECTRIC
Other 3 world players under negotiation
RENEWABLE ENERGY | WIND
Greatest potential in Brazil
25,000 photovoltaic systems installed
Residential consumer (up to 50 kWp)
will be allowed to sell energy to the
concessionary
Roof of the football stadium covered with
photovoltaic panels. Excess energy
being sold to the energy concessionary
RENEWABLE ENERGY | SOLAR
5th largest car producer (6.5%) in Brazil | 2010
6th largest exporter of vehicles and car parts in Brazil | 2010
FORD Camaçari
250,000 vehicles/year
> 8,700 employees (> 1,000 engineers in production/design)
31 suppliers in Bahia (26 on FORD’s site)
One of 5 major FORD RD&I facilities – Designing new ECOSPORT
US$ 3 billion new investment - 300,000 cars/year
76% parts produced in Bahia (95% in Brazil)
One of the most efficient FORD facilities worldwide
JAC Motors
120,000 cars/year + car design and test track
42% of all tire production in Brazil
3 factories (Bridgestone, Pirelli and Continental)
3 motorcycle factories being installed
AUTOMOTIVE
Bahia has one of the greatest unexplored mining potentials in Brazil
Major projects
Mirabela (in operation)
207,000 t/year of nickel concentrate
BAMIN (under development)
25 million t/year of iron ore concentrate
340 mining companies
generated revenues of:
US$ 0.7 billion (2009)
US$ 1.0 billion (2010)
Most important minerals
Iron; Gold; Copper;
Chromium; Nickel;
Gems; and many more…
MINING
One of the largest industrial cellulose complexes worldwide
2nd producer of cellulose in Brazil
Suzano e Veracel together have 21% of Brazilian production
BSC is the only producer of soluble cellulose in Latin America
4th producer of paper in Brazil
Over 47 cities and more than 5,700 jobs
Leader in Bahia’s export portfolio
New investments | US$ 4,3 billion
Veracel, Suzano, BSC (Bahia Specialty Cellulose)
AGRIBUSINESS | PAPER AND CELLULOSE
Bahia has an important IT complex (Ilhéus)
52 companies
1.800 jobs
15% of Brazilian production of computers, boards,
memories, monitors etc.
Tablets already being produced in Bahia
by Semp Toshiba
Technology Park to include IT companies,
such as IBM and Portugal Telecom
ELECTRONICS & IT
INFRASTRUCTURE | HIGHWAYS
INFRASTRUCTURE | RAILWAYS
Investments| US$ 7.6 billion
Under construction
West-East Integration Railway (FIOL) | US$ 3.5 billion
Express Way Baía de Todos os Santos | US$ 220 million
New Projects
Salvador – West Vector System - Itaparica Bridge Complex | US$ 3.9 billion
INFRASTRUCTURE | HIGHWAYS AND RAILWAYS
INFRASTRUCTURE | PORTS
Investments | US$ 7.8 billion
Port of Salvador | US$ 430 million
Expansion and modernization| US$ 130 million (under construction)
New pier - 375m | US$ 300 million (to be procured)
Port of Aratu | US$ 5.1 billion
Braskem Consortium | US$ 1.2 billion (under design)
Bahia Terminals | US$ 3.5 billion (under design)
Federal Government Investments | US$ 400 million (to be procured)
Porto Sul Logistics Complex | US$ 2,27 billion
Bamin Private Port | US$ 540 million (under design)
Public Port (PPP) | US$ 1.2 billion (to be procured)
Export Free Zone and Logistics Support Area | U$ 420 million (to be procured)
New Ilhéus Airport | US$ 160 million (to be procured)
INFRASTRUCTURE | PORTS
11 Universities (9 Public and 2 Private)
2 Federal Technology Colleges
103 Private Colleges
Expansion of the Federal University
system in Bahia:
University of International Integration
of Afro-Brazilian Lusophone (UNILAB),
in São Francisco do Conde
Bahia West Federal University (UFOBA)
Bahia South University (UFSBA)
Expansion of Bahia Federal University
(UFBA) to Camaçari
Expansion of Recôncavo Baiano Federal
University (UFRB) to Feira de Santana
9 new Federal Technology Colleges
being setup in Bahia
116 Universities and Colleges
(47 in the Capital and
69 in the Countryside)
EDUCATION AND TECHNOLOGY
EDUCATION AND TECHNOLOGY
One of the most advanced technology centers
in Brazil
Develops “in house” projects and provides
engineering and technological services, as
well as product development in:
Mechanics
Automotives
Polymers
Electronics
Energy (wind and solar) etc.
Has long experience in technical formation
Offers undergraduate, MSc and Ph.D. courses
in mechanical engineering
SENAI / CIMATEC
EDUCATION AND TECHNOLOGY
Convergence of public, private and academic
sectors for innovation
Aims at attracting innovative enterprises,
stimulating entrepreneurship and cooperation
Strategic areas: Energy, IT and Biotechnology
Main axes:
Innovation way (attraction of entrepreneurs
and enterprises)
Technology way (support to industry and
academia interaction)
Science way (knowledge generation and
strengthening of the existing knowledge base)
Companies/Institutions to be in the Park:
IBM, Portugal Telecom, Petrobras, Fraunhofer Inst.
TECHNOLOGY PARK
Infrastructure
Areas for industrial facilities at prices below market value
Availability of water, electricity, gas and telecommunications,
as well as road access, at the plant gate
Taxes
Exemption or reduction of the state tax (12% or 17%)
75% reduction on income tax (Federal Government)
Reduction of city taxes
Financing
DESENBAHIA (State financing agency) - subsidized interest rates for working
capital and for investments up to US$ 50 million;
Brazil Northeast Bank – BNB - subsidized interest rates for larger projects.
State Government sets priorities for usage of federal funds
BENEFITS AND INCENTIVES
Search and sale of the area for the project
Negotiations of tax incentives and relationship with other
government areas – Memorandum of Understanding (MOU)
Contacts with financing agencies (Desenbahia and BNB)
Contacts with utilities suppliers (water, electricity, natural gas, IT etc.)
Contacts with Industry and Trade Associations
Support through the environmental licensing process
GOVERNMENT SERVICES
BAHIA | LAND OF US ALL
THANK YOU!
Paulo Guimarães [email protected]
+55 71 9624-1237 +55 71 3115-7814
Superintendent of Economic Development Secretariat of Industry, Commerce and Mining