paranÁ: land of opportunities - portugalglobal.pt file2 paraná state department of industry,...

1 Paraná State Department of Industry, Commerce and Mercosul Affairs – SEIM

Rua Lúcio Rasera 649 - 80710-230 - Curitiba-PR - +55 (41) 3240-9000 www.seim.pr.gov.br

PARANÁ: LAND OF OPPORTUNITIES

1. GENERAL INFORMATION ......................................................................................................................2

2. GROSS DOMESTIC PRODUCT (GDP)..................................................................................................3

2.1 LARGER MUNICIPAL ECONOMIES ..........................................................................................4

3. INFRASTRUCTURE......................................................................................................................................4

3.1 HIGHWAYS AND RAILWAYS ..........................................................................................................4

3.2 PORTS.........................................................................................................................................................4

3.3 ELECTRIC POWER AND TELECOMMUNICATIONS .......................................................5

3.4 AIRPORTS.................................................................................................................................................6

4. EDUCATION AND TECHNOLOGICAL ASSETS ............................................................................6

5. ECONOMIC SECTORS ................................................................................................................................6

5.1 AGRIBUSINESS...............................................................................................................................................7

5.2 FOOD MANUFACTURING .................................................................................................................9

5.3 MACHINERY AND EQUIPMENT MANUFACTURING......................................................... 10

5.4 AUTOMOTIVE VEHICLE, TOW TRUCK, CARROCERIAS (BODY-WORK) AND EQUIPMENT MANUFACTURING .............................................................................................................. 10

5.5 CHEMICAL PRODUCT MANUFACTURING ............................................................................. 10

5.6 WOOD PRODUCT MANUFACTURING ...................................................................................... 10

5.7 COKE, PRODUCT DERIVED FROM OIL AND BIOFUEL MANUFACTURING .......... 11

5.8 CELLULOSE AND PAPER MANUFACTURING ....................................................................... 11

5.9 CLOTHING MANUFACTURING.................................................................................................... 11

5.10 CONCENTRATION OF PRODUCTION ...................................................................................... 11

6. FOREIGN TRADE....................................................................................................................................... 14

7. TAX INCENTIVES ...................................................................................................................................... 15

7.1 BOM EMPREGO................................................................................................................................... 15

7.2 TAX REDUCTION OR EXEMPTION FOR MICRO AND SMALL BUSINESS ENTERPRISES..................................................................................................................................................... 16

7.3 STATE VAT REDUCTION ................................................................................................................ 16

7.4 STATE VAT REGARDING THE IMPORTATION OF ASSETS, INPUTS AND GOODS BY PORTS AND AIRPORTS IN PARANÁ.................................................................................................. 16

8. LOCAL PRODUCTION ARRANGEMENTS .................................................................................... 17

9. TOURISM ........................................................................................................................................................ 19



1. GENERAL INFORMATION

PARANÁ is one of the 26 Brazilian states, located in the country’s southern region. It borders the states of São Paulo, Santa Catarina, and Mato Grosso do Sul; Argentina and Paraguay and the Atlantic Ocean. It occupies an area of 199,880 km².

Paraná is at the center of MERCOSUL (Southern Common Market), a promising market with a population of 260 million and a GDP of approximately US$ 2 trillion.

Its capital city is Curitiba, and other important cities are Londrina, Maringá, Foz fo Iguaçu, Ponta Grossa, Cascavel, Guarapuava, and Paranagua. In Curitiba Metropolitan Area, due to their economic importance, the two major municipalities are São José dos Pinhais and Araucária.

The state’s climate varies according to the region: humid tropical in the north and humid temperate in the south.

The population is comprised of various ethnic groups: Polish, Italian, German, Ukrainian Dutch, Spanish, Japanese, and Portuguese, and by migrants coming mostly from the states of Rio Grande do Sul, Santa Catarina, São Paulo and Minas Gerais.

Parana boasts an excellent infrastructure that includes highways, airports, railways, ports, and electric power.

The state government provides incentives and tax benefits as a way of attracting domestic and foreign companies. Additionally, its International and Mercosur Affairs Coordination organizes business and government missions, business rounds, support programs for the export of goods produced in the state and encourages seminars about the state of Paraná.



MOST POPULATED CITIES MUNICIPALITY POPULATION

Curitiba* 1,851,215 Londrina* 510,707 Maringá* 335,511 Foz do Iguaçu* 325,137 Ponta Grossa* 314,681 Cascavel* 296,254 São José dos Pinhais*

279,297

Colombo * 247,268 Guarapuava 172,728 Paranguá 139,796 Apucarana 121,290 Pinhais 118,319 Araucária 117,964 Toledo 116,774 SOURCES: IBGE *Estimated Population

2. GROSS DOMESTIC PRODUCT (GDP)

Paraná’s economy is the fifth largest in the country. Nowadays the State is responsible for 5.8% of the national GDP

GENERAL DATA Capital City Curitiba Area (km²) 199,880 Population density (2007) (hab./km²)

53,5

Number of municipalities 399 Paraná’s Population (2009) 10,686,247 Brazil’s Population (2009) 191,480,630 Share with Brazilian Population (%)

5.6

Urban Population 84.7 HDI (2000) 0.787 SOURCES: IBGE, IPARDES

GROSS DOMESTIC PRODUCT – 2002-2008 PARANÁ BRAZIL YEAR Current prices

(million R$)

Current prices

(million R$)

SHARE PARANÁ/

BRAZIL (%)

2002 88,407 1,477,822 6.0 2003 109,459 1,699,948 6.4 2004 122,434 1,941,498 6.3 2005 126,677 2,147,239 5.9 2006 136,681 2,332,936 5.8 2007¹ 150,712 2,558,821 5.8 2008¹ 168,777 2,332,936 5.8

SOURCES: IBGE, IPARDES (1) IPARDES’s estimate of Paraná GDP



2.1 LARGER MUNICIPAL ECONOMIES

Curitiba metropolitan area comprises municipalities that rank high among the state’s best economies. Due to their dynamic industries and services, Curitiba, Araucária, and São José dos Pinhais are the municipalities with the highest GDP in Paraná. In the rest of the state, Londrina and Maringá stand out for their striking activity in agribusiness and services, while Foz do Iguaçu is a reference in tourism and electric power production.

3. INFRASTRUCTURE

3.1 HIGHWAYS AND RAILWAYS

A well-structured highway network ensures interconnection between major

municipalities of the state of Paraná and the Port of Paranaguá, as well as with other economic hubs in Brazil and neighbor countries. Paraná has the largest paved highway system in southern Brazil. Among the most important roads are BR-277, which crosses the state from east to west; BR- 376, which links the northeast of the state with the state of Santa Catarina; and BR-116 that connects Paraná with São Paulo and the southern region, totaling approximately 13,750 Km of paved roads. The state's railway network (2,288 Km) connects the productive areas of the North and West to the Port of Paranaguá.

3.2 PORTS

MUNICIPALITY GPD (R$ thousand) SHARE (%)

Curitiba 32,153,307 23.5 Araucária 8,437,759 6.2 São José dos Pinhais

7,034,113 5.1

Londrina 6,612,093 4.8 Foz do Iguaçu 5,467,714 4.0 Maringá 5,275,927 3.9 Ponta Grossa 4,382,467 3.2 Paranaguá 4,125,923 3.0 Cascavel 3,229,991 2.4 Guarapuava 1,909,615 1.4 Other municipalities

58,051,930 42.5

PARANÁ 136,680,839 100.0 SOURCES: IBGE, IPARDES



Paranaguá Bay harbors the state's two maritime ports-Paranaguá and Antonina. The Port of Paranaguá is 91 Km away from Curitiba, and is the largest port in southern Brazil. It moves cargo from several Brazilian states and neighbor countries like Argentina, Bolivia, and Paraguay.

In 2008, the movement of goods reached 33 million tons, including exports and imports, highlighting fertilizers, bran, corn, and soybean. In the same year, the revenues from exports amounted to US$ 14 billion. Additionally, the Port of Paranaguá moved 162.4 thousand vehicles and 604,690 thousand containers. Paraná also ranks second as Brazilian alcohol exporter. The state also boasts land customs stations in its countryside that are suitable for export and import dispatches and tax collection.

3.3 ELECTRIC POWER AND TELECOMMUNICATIONS

Paraná is one of most important electric power generating states in Brazil and it

consumes approximately 20% of the energy produced in its territory. Itaipu Bi-national, on the Paraná River, is among the several power plants located in Paraná and is the world's largest hydroelectric operation. COPEL (Company of Energy of Paraná) has the

DISTANCE FROM THE PORT Curitiba 85 São José dos Pinhais 86 Araucária 108 Ponta Grossa 198 Guarapuava 322 Cascavel 558 Londrina 460 Maringá 504 Foz do Iguaçú 716



lowest energy rates. In the factory sector, its rates are 22% lower than the second cheapest company.

All of Paraná's regions are connected with optic fiber networks and satellite communication for data, voice, and image transmission to the whole world.

3.4 AIRPORTS

Paraná has 5 conventional airports operating regular airlines. Four of them are

equipped for large aircraft and heavy load operations (São José dos Pinhais. in the greater Curitiba; Foz do Iguaçu; Londrina; and Maringá) and two (Cascavel and Guarapuava) just for regional flights. The airports in São José dos Pinhais and Foz do Iguaçu are international airports. Additional 17 airports operate with the necessary infrastructure for conventional aviation. 4. EDUCATION AND TECHNOLOGICAL ASSETS

Paraná's current public and private learning institutions network provides proper

conditions for qualifying technical labor, at both secondary and higher education levels, due to the work developed by a federal technological university with its eleven campuses distributed across the state. This network can provide training for technical specialists to the productive sector's quick demand. The state's technical and scientific infrastructure – R&D institutes, incubators and technology parks, and higher education institutions – has been set up in the past decades in the surroundings of Curitiba and the state's main regional production hubs. These learning institutions are well prepared to meet the demand of the most modern and varied activities in the farming, manufacturing, and service sectors, in full compliance with international standards. 5. ECONOMIC SECTORS1

Industrial transformation in Paraná grossed R$ 42,3 billion in 2007. In the industrial structure, the dominant segments of food and beverage, petroleum and manufacturing and assembly of automotive vehicles, account for nearly 53.8% of the state’s total industrial transformation. Another important sector is IT. Parana is home of the number-one computer manufacturer in Brazil, the 4th Among Latin American and the 14th in the world market.

1 APEX. Plano de Trabalho (Março a Junho de 2009). 28/03/2009

HIGHER EDUCATION 197 institutions

2 Federal 13 State

7 Municipal 175 Private



Paraná’s gross value added in the service sector was estimated in R$74,9 billion in 2006, with a strong participation of commercial, public administration, and real estate activities. The leadership of the food industry in terms of relative weight in the industrial sector shows the importance of agribusiness in Parana. VALUE OF MANUFACTURING, BY ECONOMIC ACTIVITIES - PARANA -

2007 VALUE OF MANUFACTURING INDUSTRY

INDUSTRIAL ACTIVITY MILLION R$ SHARE

(%)

SHARE PARANÁ/

BRAZIL (%) TOTAL 42,338 100.0 7.0

Extraction Industry 201 0.5 0.4 Transformation Industry 42,137 99.5 7.5 Foods and beverage 8,706 20.6 9.4 Oil Refining and alcohol production

8,621 20.4 12.5

Automotive vehicles 5,329 12.6 10.3 Machines and equipments 2,731 6.4 7.3 Chemicals 2,608 6.2 4.2 Packaging, pulp and paper 2,147 5.1 10.6 Wood products 1,755 4.1 23.3 Others 10,240 24.2 4.7 SOURCE: IBGE

5.1 AGRIBUSINESS

The agricultural sector of the State of Paraná is characterized by diverse activities, besides standing out as the largest producer of grain. The use of advanced farming techniques puts Paraná among Brazilian states presenting the highest levels of productivity. Soy, corn, wheat and sugar cane are the main agricultural products. In recent years, production of fruit has increased, highlighting banana, tangerine and orange.

As regards the livestock, poultry stands out, with 25.3% of the total slaughter in the country. In the segments of cattle and pigs, the state's participation reaches 4.2% and 16.0% respectively.

ANIMAL SLAUGHTER – PARANÁ – 2008 ANIMAL NUMBER OF

HEADS SHARE

PARANÁ/BRAZIL (%) Chicken 1,255,584,041 25.6 Cattle 1,200,730 4.2 Pork 4,618,377 16.0 SOURCE: IBGE



In recent years (2003 to 2007) industrial growth in Paraná has been less concentrated. The industrial context, while retaining a few sectors in relation to concentration of value, also diversifies into many other sectors providing a performance close to the average accumulated growth of 16.9%.

Apart from the main sectors of the greater share of industry in the state, we also consider the sectors in the state which employ the largest number of activities, as table shows:

PARTICIPATION IN SALES PROCESSING INDUSTRY, BY ECONOMIC ACTIVITIES -

PARANA - 2007

INDUSTRIAL ACTIVITY Number

of Workers

Number of Establishments

Participation in Sales

Manufacturing Industry

Manufacture of Food Products 144,688

3,251 34.50%

Manufacture of motor vehicles, trailers and truck bodies *

35,866

498

12.51%

Manufacture of Chemicals 16,830

805

11.13%

Manufacture of Machinery and Equipment *

21,805

1,005 5.19%

Manufacture of Pulp, Paper and Paper Products **

17,687

472

4.38%

Manufacture of Wood Products ** 44,530

2,406 3.48%

Manufacture of Metal Products, except Machinery and Equipment

31,341

2,926 3.12%

Manufacture of Rubber Products and Plastic Material

26,676

1,153 3.06%

Machinery Manufacturing, Machinery and Materials

15,135

348

2.81%

Equipment of Computing, Consumer Electronics and Optics

9,692

241

2.66%

Furniture Manufacturing 34,214

2,181 2.63%

MAIN FARMING PRODUCTS – PARANÁ - 2008 PRODUCT QUANTITY

(tons) SHARE

PARANÁ/BRAZIL (%) Coffe 146,006 5.2 Sugar cane 55,605,943 8.5 Beans 764,031 22.4 Corn 15,369,445 26,2 Soybean 11,897,214 19,9 Wheat 3,202,088 53,1 SOURCE: IBGE



Manufacture of Beverages 4,897

118

2.00%

Manufacture of coke, petroleum products and biofuels **

15,991

39

1.93%

Metallurgy 6,547

395

1.90%

Manufacture of Minerals and Non-Metallic

22,950

1,884 1.64%

Manufacture of Textile 14,428

688

1.50%

Manufacture of Apparel and Accessories

64,270

4,282 1.46%

Manufacture of Miscellaneous Products

8,535

533

1.37%

Preparation of Leather and Manufacture of Leather Goods, Travel Goods and Footwear

7,082

465

0.70%

Manufacture of Tobacco Products 711

17

0.62%

Manufacture of pharmaceutical chemicals and pharmaceutical products

3,676

75

0.59%

Printing and Reproduction of Recordings

8,080

936

0.53%

Maintenance, Repair and Installation of Machinery and Equipment

5,378

584

0.21%

Manufacture of Other Transport Equipment, Except Motor Vehicles

951

69

0.09%

TOTAL PROCESSING INDUSTRY

561,960

25,371 100.00%

SOURCE: FIEPR - Federation of Industries of Paraná. * Industrial activity which grew considerably in the years 2003 to 2007. ** Industrial activity has decreased by growth in the years 2003 to 2007. 5.2 FOOD MANUFACTURING

The food sector in Paraná is represented by 3.251 companies, which is equivalent to 13% of the total number of companies in the state. They are responsible for 34,5% of the revenue of the state's transformation industry and employ approximately 145.000 people. The regions that stand out in the food and beverage sector are: Curitiba's metropolitan area, central north, central west and central east of Paraná. This good position reached by Paraná in the sector is a result of investments made during the past years, especially in sanitary. The union of this sector leaderships with cattle raisers has



greatly improved the quality of the state's cattle, which influenced directly the quality of beef and dairy products. From 2003 to 2007, the sector grew by 10,9%, beverage manufacturing grew by 27,1% (same period). 5.3 MACHINERY AND EQUIPMENT MANUFACTURING

Together with food sector, the machinery and equipment sector stands out. It presented an accumulated growth of 136,1% from 1999 to 2007, especially in the segment of agricultural machines, due to the long Brazilian agricultural expansion, with favorable conditions to financing by BNDES – National Bank of Social and Economic Development, from MEDERFROTA program. More than 80% of the companies belonging to this segment are concentrated in Curitiba's metropolitan area. 5.4 AUTOMOTIVE VEHICLE, TOW TRUCK, BODY-WORK AND EQUIPMENT MANUFACTURING

This sector is represented by 498 companies. It is responsible for 12,51% of the transformation industry's total revenue and employs approximately 36.000 people. The regions that stand out in this sector are central north and northwest of Paraná. This was the sector that presented the greatest accumulated growth from 2003 to 2007 (88,6%), among transformation industries. It results from growth in domestic automobilistic market for the past four years, plus the unemployment rate decrease and income increase, better credit conditions, taxes decrease, longer financing deadlines and greater demand (internally and externally), especially concerning the Latin-American market for trucks and buses. It is important to mention that from 1999 to 2007 the sector presented a accumulated growth 179,3% 5.5 CHEMICAL PRODUCT MANUFACTURING

Chemical product manufacturing industry is in third place concerning the total sales of transformation industry. Companies related to this sector are located mainly in the Curitiba metropolitan area. 5.6 WOOD PRODUCT MANUFACTURING

The wood products manufacturing sector is the third sector that most employs in Paraná. The production for that sector is located mainly in the Curitiba metropolitan area (41%); other 27% are in the central west of Paraná.



5.7 COKE, PRODUCT DERIVED FROM OIL AND BIOFUEL MANUFACTURING

This segment's production (in Paraná) is located mainly in northern area (60%); other 21% in northwestern area and 16,6% in central west. Moreover, Presidente Getúlio Vargas Refinery – REPAR, located in Curitiba metropolitan area, produces liquefied gas, gasoline, kerosene, naphtha, solvents, fuel oil, asphalt and others. The state also was chosen to headquarter several companies focused on biofuels. 5.8 CELLULOSE AND PAPER MANUFACTURING

Despite of the fact that cellulose and paper manufacturing sector has faced an intense equity adjustment, the companies for that segment (in Paraná) are located in southeast (24%), central east (23%), central south (21%) and central west (6%). 5.9 CLOTHING MANUFACTURING

The clothing manufacturing sector presents the greatest number of companies and is the second sector which most employs. The companies related to it are located in central-northern Paraná (48%), northwestern Paraná (24%) and southwestern Paraná (8%). It is considered to be a sector that presents a low level of technology aggregation.

5.10 CONCENTRATION OF PRODUCTION

CONCENTRATION OF PRODUCTION FOR THE TRANSFORMATION INDUSTRY, ACCORDING TO REGIONS (PARANÁ), 2007

REGIONS (PARANÁ)

NUMBER OF

WORKERS

NUMBER OF ESTABLISHMENTS

SHARE ON SALES BY TRANSFORMATION

INDUSTRY Northwest 55,451 2,233 3.48% Central west 10,528 581 1.59% Central north 132,909 6,850 16.04% North 23,377 959 2.16% Central east 34,865 1,186 10.82% West 62,562 2,729 7.9% Southwest 26,383 1,333 2.25% Central south 14,419 854 2.29% Southeast 16,762 1,042 1.01% Metropolitan area (Curitiba)

184,704 7,604 52.48%

Total 561,960 25,371 100% SOURCE: FIEP – Federação das Indústrias do Paraná



The Curitiba metropolitan area is the main region, representing more than 50% of

sales by the T.I. It is also the location for most part of the companies (7.604) and for most part of the workers (184.704). It is followed by central-north and west. Below, graphs from 1 to 10 show the main sectors in each region.

Cities in the Curitiba metropolitan area stand out as top economies. Curitiba, Araucária and São José dos Pinhais are responsible for, respectively, 23,6%, 5,5% and 5,4% of the sates’s GDP, followed directly by Londrina and Foz do Iguaçu.

GRAPH 1 Region 1 – Northwest of Paraná

3.48% of industrial commerce - 2,675 companies

GRAPH 2 Region 2 – Center-West of Paraná

1.59% of industrial commerce - 754 companies

GRAPH 3 Region 3 – Central North of Paraná


GRAPH 4 Region 4 – Pioneer North of Paraná


Food and Beverage

333 61.19%

Others 377

15.63%

Clothing and Accessories

202 2.77%

Wood Prod.105

5.88% Oil

4 5.49%

Metal Prod.(except

Machinery and Equip.)

109 3.54%

Automotive Vehicle

8 2.27%

Machinery and Equip.

20 2.05%

Chemical Products 26

1.18%

Wood Products 55

0.19%

Clothing and Accessorie s

152 3.03%

Oil 2

16.64%

Metal Prod. (except Machinery

and Equip ment ) 60

0.15%

Others 282

20.16%

Vehicle 9

0.03%

Machinery and Equipment

19 0.32%

Chem. Products Automotive

7 0.01%

Beverage 168

59.47%

Food and Beverage

1119 42%

Oil 18 5%

Clothing and Accessories

2131 4% Wood Prod.

268 0%

Others 3027 29%

Automotive Vehicle

144 2%


335 4%

Chem. Products

242 12%

Metal Prod. (except

Machinery and Equip.) 681 2%

Food and



GRAPH 5 Region 5 – Central Eastern of Paraná


GRAPH 6 Region 6 – West of Paraná


GRAPH 7 Region 7 – Southwest of Paraná


GRAPH 8 Region 8 – Center-South of Paraná


GRAPH 9

Region 9 – Southeast of Paraná 1.01% of industrial commerce - 1,232 companies

GRAPH 10 Region 10 – Metropolitan Area of Curitiba


Food and Beverage

559 82.06%

Oil 1

0.02%

Wood Prod. 187

0.59% Clothing & Accessories

508 1.43%

Others 1318

6.61%

Automot. Vehicle

71 1.78%

Metal Prod. (except Machinery

and Equip.)

410 1.56%

Chemical Prod. 65

4.72%

Machinery and Equip. 172

1.23%

Food andBeverage

19416.37% Clothing and

Accessories 80

0.31%Wood Prod.

48232.16%

ChemicalProd.

293.12%

Metal Prod.(except

Machineryand Equip.)

770.45%

Machineryand Equip.

160.40%

AutomotiveVehicle

166.58%

Others 338

40.62%

Food andBeverage

28068.17%Clothing and

Accessories 277

5.51%

Wood Prod.180

1.95%

Chemical Prod.26

0.16%

Metal Prod. (except


2422.83%


520.78%

AutomotiveVehicle

220.10%

Others 581

20.49%

Food andBeverage

15253.79%

Clothing andAccessories

1020.02%

WoodProd.373

8.73%Oil 1

0,00%

ChemicalProducts

436.34%

Metal Prod.(except


1950.86%

Machineryand Equip.

591.22%Veículos

Automotores

170,25%

Others 427

28.79%



6. FOREIGN TRADE From 2002 to 2008, the state’s export grew by 167%. In 2008, Paraná accounted

for 7,7% of the US$ 198 billion in Brazilian exports and ranked 5th among the Brazilian exporting states.

GROUP OF PRODUCTS

EXPORTS JAN TO DEC

2008

PART. %

EXPORTS JAN TO

DEC 2009

PART %

CHANGE

Soybean Complex 4,364,109,005 28.62 3,275,548,500 29.19 -24.94% Meat (cattle, poultry and pork)

2,017,997,045 13.23

1,662,275,969 14.81 -17.63%

Equipment 2,766,828,715 18.15 1,454,561,370 12.96 -47.43% Sugars and confectionery

557,187,825 3.65 716,321,034 6.38 28.56%

Wood 866,963,731 5.69 531,781,471 4.74 -38.66% Miscellaneous edible preparations

621,003,518 4.07 489,701,576 4.36 -21.14%

Mechanical 766,457,573 5.03 423,339,907 3.77 -44.77% Chemicals 487,749,296 3.20 392,312,830 3.50 -19.57% Paper and cellulose 445,780,172 2.92 337,270,093 3.01 -24.34% Cereals 440,181,762 2.89 318,711,735 2.84 -27.60% Beverages 412,190,987 2.70 269,282,648 2.40 -34.67% Electrical Devices and electronics

229,431,167 1.50 185,607,127 1.65 -19.10%

Textiles 156,954,795 1.03 119,562,518 1.07 -23.82% Oil and derivatives 160,856,947 1.05 102,184,559 0.91 -36.47% Furniture 125,531,542 0.82 89,843,484 0.80 -28.43% Subtotal 14,419,224,080 94.57 10,638,340,821 92.39 -28.09% Total 15,247,697,385 100.00 11,222,826,793 100.0 -26.40% SOURCE: MDIC – Ministério do Desenvolvimento: Indústria e Comércio – Elaboração: FIEP – Departamento Econômico - Ministry of Development: Industry and Trade - Development: FIEP - Department of Economics

GROUP OF PRODUCTS

IMPORTS JAN TO DEC

2008

PART. %

IMPORTS JAN TO DEC

2009

PART. %

CHANGE

Chemicals 3,619,328,572 24.84 1,819,577,140 18.92 -49.73% Material of transports

2,316,877,544 15.90 1,760,795,928 18.31 -24.00%

Oil and derivatives 3,193,440,100 21.92 1,331,711,185 13.84 -58.30% Mechanical 1,623,764,497 11.15 1,323,587,284 13.76 -18.49% Electrical Materials and

1,045,698,900 7.18 937,374,270 9.75 -10.36%



electronics Cereals 236,275,479 1.62 245,826,250 2.56 4.04% Paper and cellulose

118,301,259 0.81 108,203,867 1.12 -8.54%

Textiles 99,115,938 0.68 101,734,968 1.06 2.64% Furniture 57,448,446 0.39 35,639,701 0.37 -37.96% Beverages 31,874,121 0.22 30,716,402 0.32 -3.63% Wood 55,218,756 0.38 30,291,385 0.31 -45.14% Miscellaneous edible preparations

15,136,676 0.10 19,897,848 0.21 31.45%

Meat (cattle, poultry and pork)

12,709,864 0.09 14,380,951 0.15 13.15%

Soy Complex 32,864,204 0.23 11,195,337 0.12 -65.93% Sugars and confectionery

1,300,682 0.01 570,890 0.01 -56.11%

Subtotal 12,459,355,038 85.52 7,771,503,406 80.80 -37.63% Total 14,569,153,496 100.0 9,618,757,577 100.00 -33.98% SOURCE: MDIC – Ministério do Desenvolvimento: Indústria e Comércio – Elaboração: FIEP – Departamento Econômico - Ministry of Development: Industry and Trade - Development: FIEP - Department of Economics

7. TAX INCENTIVES

Paraná offers an intelligent array of tax incentives and benefits to assist business

companies in the state – particularly micro and small business – and domestic and foreign companies wishing to start or expand their operations here.

7.1 BOM EMPREGO

Literally translated “Good Job”, this program was designed to create jobs and generate income. It extends payment deadlines for taxes generated by implementation, reactivation, or expansion of industrial operations. The tax amount to be extended is higher the lower is the county HDI (Human Development Index).

As the program aims industrial decentralization and the respect of environment, Curitiba, Araucária and São José dos Pinhais were not eligible for the program, except for goods with non similar production in the state. Other counties were classified in 3 areas with 90%, 70%, 50% and 0% tax reduction.

According to the program, the time limit for partial tax payment is 48 months, and the duration of the benefits 96 months (8 years). The program also offers extended tax payment deadlines for electric power consumed.



The entire content of the Decree is available at http://celepar7cta.pr.gov.br/SEEG/sumulas.nsf/2b08298abff0cc7c83257501006766d4/5da8f1c1301bb82403256e99005e7a61?OpenDocument 7.2 TAX REDUCTION OR EXEMPTION FOR MICRO AND SMALL BUSINESS ENTERPRISES

Micro and small business enterprises with maximum gross invoicing of R$ 360 thousand in a year are benefited from an exemption or reduction of ICMS (state VAT). Moreover, there are 16 levels of tax reduction to enterprises with gross invoicing between R$360 thousand and R$2.4 millions. The entire content of the Decree is available at http://celepar7cta.pr.gov.br/SEEG/sumulas.nsf/2b08298abff0cc7c83257501006766d4/1b63c0f834a2fb0f8325731d00682e35?OpenDocument 7.3 STATE VAT REDUCTION The ICMS (State VAT) percentage inside Paraná decreased from 18% to 12% in commercial operations, except for the final consumer. As a result, competitiveness between enterprises in Paraná is bigger, presenting a considerable increase in sells among the companies in the state. Consequently, purchases made by wholesalers in other states decreased. In Parana's internal market, regarding the industrial sector, the purchases of inputs rose from 43% to 46% as a consequence of this decree. The entire content of the Decree is available at http://celepar7cta.pr.gov.br/SEEG/sumulas.nsf/2b08298abff0cc7c83257501006766d4/d4d4570422d6534203256e9800725bae?OpenDocument 7.4 STATE VAT REGARDING THE IMPORTATION OF ASSETS, INPUTS AND GOODS BY PORTS AND AIRPORTS IN PARANÁ The importations by ports and airports have a reduction in calculation basis, which results in a percentage of 3%. As to importing fixed assets, there is no tax collection. As to inputs and parts, the tax will be deferred to the time the products leave the establishment which used them during the manufacturing process, and in the case of goods, the tax collection will be made by the time of customs clearance.

The entire content of the Decree is available at http://celepar7cta.pr.gov.br/SEEG/sumulas.nsf/2b08298abff0cc7c83257501006766d4/861345f4b2ce52b103256e9800725baf?OpenDocument



7.5 POSSIBILITY OF USING STATE VAT CREDITS TO INVEST The industry can use the ICMS (state VAT) credits authorized on SISCRED to acquire properties, goods and services in order to establish and expand its factories. The entire content of the Decree is available at http://celepar7cta.pr.gov.br/SEEG/sumulas.nsf/2b08298abff0cc7c83257501006766d4/a0844aff7300bf76832575fb004be516?OpenDocument

8. LOCAL PRODUCTION ARRANGEMENTS

Local Production Arrangements (APLs) are a concentration of manufacturing

companies from the same industry or complementary activities within the same region. APLs enable joint action such as the purchase of raw materials, export consortia, technology sharing, and labor capacity-building. The manufacturing companies thus gain in scale, reduce costs, and become more competitive. Today, the 22 APLs consolidated in Paraná account for more than 60 thousand jobs.

In Paraná we can find the following LPAs: Apucarana – caps: 200 industries – 10.000 direct jobs – revenue per month: R$10

million – production per month: 4000 unities – 60% of national production Arapongas – furniture 576 industries – revenue: R$918 million (2006) – exports: US$68,6 million (2006) –

15.000 direct and indirect jobs Campo Mourão – medical and dental tools: 12 industries – 157 direct jobs –

annual revenue: R$20 million Cascavel and region – agriculture equipment and supplies: 100 industries – 2000

direct and indirect jobs Cianorte / Maringá – clothing: 1650 industries – 20.000 direct and indirect jobs – 7

million garments a month Curitiba – software: 160 industries – 1000 direct jobs Imbituva – knitwear: 44 industries – 2000 direct and indirect jobs Loanda – metal sanitary ware: 21 industries in Loanda, Santa Cruz do Monte

Castelo, Santa Isabel do Ivaí e São Pedro do Paraná – 2.000 direct jobs and 3000 indirect jobs. 1,2 million garments a month

Londrina – clothing: 432 industries – 12.000 job places Londrina – IT: 110 industries Paranavaí – cassava: 80 industries – 15.000 job places Ponta Grossa – metal furniture and logistics and storage system: 83 industries –

1.837 direct jobs



Curitiba northern metropolitan area – lime and limestone: 90 industries – 5.500 direct jobs and 22.000 indirect jobs

Southwest – aluminum: 87 industries – 740 direct jobs and 2.000 indirect jobs - Production volume: 500.000 garments a month

Southwest – clothing (fashion): 460 service industries and approximately 300 industries at the clothing sector

Terra roxa – baby clothing: 48 industries and employs approximately 2.500 people (in the city) - Revenue: R$3 million a month - Production: 300.000 garments per month

União da Vitória – wood and door and window frames: 200 industries, including factories that process raw wood (sawing or laminating), plywood factories, wood floors, furniture, pre-made houses, doors and windows, among other products.



Botanical Garden - Curitiba

Iguazu Falls

Train to Paranaguá

9. TOURISM

Paraná has been established as a main touristic destination in Brazil. Due to its strategic location, attractiveness, and availability of goods and services Paraná is an excellent state to tourism investments.

It is the 4th most visited Brazilian State by foreign tourists. In 2008 it received more than 12.9 million visitors who generated a revenue of US$2.6 millions.

The State stands in the fields of Ecotourism and Adventure; Leisure, Sun & Beach; Business and Events; Cultural and Farm Tourism. Its regions have a great diversity of cultures, natural attractions, itineraries, and the traditions of the state of all people.

The main touristic regions are: CURITIBA and Metropolitan Area: urban planning,

parks, green areas, museums, dinning, sightseeing and infrastructure. The city occupies the 5th place in business and events in the country and will held games of World Cup in 2014.

FOZ DO IGUAÇÚ and the Region of the Paths to the Lake of Itaipu: the emotion

and energy of Itaipu Hydroelectric Plant and of Iguazu Falls National Park with an exuberant wonder of nature which is the 2nd place of leisure most visited in Brazil.

COASTLINE, the beaches, biodiversity of Atlantic Forest, historic cities, gastronomy, traditions and charms of Honey Island in Paranaguá.

CAMPOS GERAIS: region historically marked by tropeirismo and the presence of European immigrants. Here is located the Vila Velha and Guartelá Parks.

NORTH, NORTHWEST, WEST, SOUTHWEST, SOUTH and CENTRAL of the State: regions where cities, natural attractions, agriculture, agribusiness, family farms, scientific and cultural development are aligned to tourism.

Additional information is available

on the website of Paraná State Tourism Department, http://www.turismo.pr.gov.br/

Infrastructure

48 Majors in Tourism (Higher Education, Technician and Technologist)

1200 Travel agencies 1989 Tourism guides 695 Lodging facilities 1043 Touristic carriers

SOURCE: Cadastar

paranÁ: land of opportunities - portugalglobal.pt file2 paraná state department of industry,...

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