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Editorial

The Staff

Brazil, a huge country

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s we all know, Brazil is a continental country. Not only for its extension – even to Brazilian people it’s hard to know their land deeply – and population above 200 million, but for its cultural diversity. A commonality – and a surprising one – is the language unification, which shows the power of the Portuguese colonization, which achieved to input its language from north to south, despite the largeness of the territory and also despite the neighboring countries, which speak Spanish. But, besides the Portuguese, other peoples have had great share in the shaping of Brazil; German and Italian mostly, but also Polish, Dutch, Russian and Japanese peoples. German and Italian people, for example, added to Brazilian culture their strong bound to hard working and contributed to the economic shaping of the country through their industries. Italian people are very present in São Paulo and Rio Grande do Sul states and the German people are present in states like Santa Catarina and Rio Grande do Sul. The cultural aspects preservation is a reality and we can verify it in German and Italian cuisine strong basis in Brazilian cuisine. Whoever visits South’s German origin cities can also recognize German influences not only in the architecture but also in other aspects, like the taste for flowers. German immigrants’ descendants have also great care for the preservation of their language; that being, means it’s not hard to find German origin schools which teaches the language as a regular subject even nowadays and, in rural regions, many of these descendants learn German at home long before they learn Portuguese. There are even reports from young people who first came to school, by the age of six years old, knowing only the German language. In the

South of Brazil, we have many Oktoberfest inspired parties and there’s a very important city named after Hamburg, called New Hamburg. In the matter of Economy, we can say São Paulo state has the strongest position: its capital, which has the same name of the state, is internationally known. São Paulo is the place where we can find the largest and strongest part of Brazil’s plastic industry; though there are two other regions that also deserve mention: the first of them is composed by three states in the country’s south region and the second is in the northeast region, composed by nine states. One thing worth remembering is that many states in Brazil are bigger than some European countries. Brazil is composed by three other regions: North, Middle-West and Southeast (where we can find São Paulo). Despite the fact that we’re talking of a very large country, getting from a place to another isn’t always very easy and the urban infrastructure needs a lot of investments, like roads, ports and airports. And it’s exactly on that matter that the Brazilian government seeks for international partners. The Brazilian plastics industry adds approximately 12,000 businesses, contributing to the generation and distribution of income in the country, the third largest employer in the manufacturing industry, with 348,000 jobs. In 2012 the plastics processing industry produced about R$ 53.83 billions, making 6.66 thousand tons of plastic material, which resulted in a turnover of R$ 56.49 billion, about 7% higher than 2011. There was an increase of 5% in the production of processed plastics (weight) between 2011 and 2012, the same growth hit by apparent consumption, and Brazilian companies exported about 5% of their production. All these aspects are not always known by the European people, that being because the strong migration to Brazil happened long time ago, in the XIX century, and, as we all know, Brazil has just now taken an important economic position. That is why Brazil participates actively in the K 2013 as an exhibitor, visitor and negotiator, with an agenda of meetings between Brazilian and European companies already booked!

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Editorial

A Redação

Brasil: um país imenso

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omo todos nós sabemos, o Brasil é um país continental. Não apenas pela sua extensão – mesmo para os brasileiros é difícil conhecer a fundo a sua terra – e população superior a 200 milhões, mas pela sua variedade cultural. Um ponto em comum – e surpreendente – é a unidade da língua, o que demonstra a força da colonização portuguesa, que conseguiu imprimir seu idioma de norte a sul, a despeito do imenso território e dos países vizinhos, que falam espanhol. Mas além dos portugueses, outros povos tiveram grande participação na formação do Brasil, especialmente os alemães e italianos, mas também poloneses, holandesdes, russos, japoneses. Os alemães e italianos, por exemplo, levaram sua relação forte com o trabalho e contribuíram para a formação econômica do Brasil com suas indústrias. Os italianos têm forte presença nos estados de São Paulo e Rio Grande do Sul e os alemães em estados como Santa Catarina e Rio Grande do Sul. A preservação de elementos culturais é uma realidade, como na culinária italiana e alemã, com adaptações claro. Quem visita cidades de origem alemãs no Sul também reconhece características da arquitetura e outros elementos, como o gosto pelas flores. Os descendentes dos imigrantes alemães também têm preocupação com a língua; não é difícil encontrar escolas de origem alemã que ensinam o idioma como matéria regular até hoje e, no interior, muitos descendentes aprendem em casa primeiro o alemão e depois o português. Há relatos de pessoas jovens que chegaram à escola, aos seis anos, conhecendo apenas o alemão. Na Região Sul do Brasil também acontecem festas inspiradas na Oktoberfest e no Rio Grande do Sul

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uma importante cidade se chama Novo Hamburgo. Do ponto de vista econômico, nosso grande destaque é o estado de São Paulo, cuja capital tem o mesmo nome e é conhecida internacionalmente. É em São Paulo, naturalmente, que está a maior e mais forte parte da indústria plástica brasileira, mas duas outras regiões se destacam: Sul (composta por três estados) e Nordeste (composta por nove estados). Vale lembrar que muitos estados brasileiros são maiores que países europeus. Compõe o Brasil outras três regiões, Norte, Centro Oeste e Sudeste (onde fica São Paulo). Apesar de ser um país muito grande, as conexões não são muito fáceis e a infraestrutura é uma área que precisa de investimentos, como estradas, portos e aeroportos. E é na infraestrutura que o Governo Brasileiro busca grandes parceiros internacionais. A indústria de plásticos brasileira agrega aproximadamente 12 mil empresas, contribuindo para a geração e a distribuição de renda no país, sendo o terceiro maior empregador da indústria de transformação, com 348 mil postos de trabalho. Em 2012 a indústria do plástico produziu cerca de R$53,83 bilhões, transformando 6,66 mil toneladas de material plástico, o que resultou em um faturamento de R$ 56,49 bilhões, aproximadamente 7% superior ao de 2011. Houve crescimento de 5% na produção de transformados plásticos (em peso) entre 2011 e 2012, o mes­mo crescimento atingido pelo consumo aparente, e as empresas brasileiras exportaram cerca de 5 % de sua produção em 2012. Todos esses elementos muitas vezes são desconhecidos entre muitos europeus, pois a forte migração para o Brasil aconteceu há muito tempo, a partir do século XIX, e, como se sabe, o Brasil assumiu uma posição econômica importante há pouco. É por isso que o Brasil participa ativamente da K 2013, como expositor, visitante e negociador, com uma agenda de encontros entre empresas brasileiras e européias já marcada!


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Expedient

Summary

Conceitual - Publicações Segmentadas

www.plasticosul.com.br www.plasticonordeste.com.br

Avenida Ijuí, Nº 280 CEP: 90.460-200 - Bairro Petrópolis Porto Alegre - RS Phone/Fax: 55 51 3062.4569 redacao@conceitualpress.com.br Direction: Sílvia Viale Silva Edition: Melina Gonçalves - DRT/RS nº 12.844 Writing: Brigida Sofia Financial department: Letícia Dias Commercial department: Débora Moreira Graphic Design & Publicity Creation: Jose Francisco Alves (55 51 9941.5777) Cover: promotional image Special edition of the Plástico Sul and Plástico Nordeste magazines, properties of the publishing company Conceitual - Publicações Segmentadas, destined to the industries producers of plastic material of 3rd, 2nd and 1st petrochemical generation in the states of the South and Northeast regions in Brazil, opinion forming, public agencies pertinent to the area, representative entities, events, seminaries, congresses, forums, trade shows and the press in general. Opinions expressed in signed articles do not correspond necessarily to those adopted by the South Plastic magazine. The reproduction of subjects published is allowed since is mentioned the source. Print run: 2.000 copies.

03 Editorial .........................................Brazil, a huge country

08 Interview .............................Mr. Werner Matthias Dornscheidt

10 K’2013: The Fair ........................................Plastics move the world

16 The Plastic in Brazil ...................;..................The X-Ray of the industry

29 Commercial Relations ................................A large market open for the world

32 Country Economy ...........Many aspects yet to develop, many opportunities

34 National Associations ..............................Brazilian associations and unions

Member of to

Cover - Capa ANATEC - National Association of the Technical Publication Publishing companies, Directed and Specialized

Divulgation

Trademark:

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Interview Mr. Werner Matthias Dornscheidt - President & CEO of Messe Duesseldorf

Alemanha + Brazil: Where ideas connect

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ith over 3,200 exhibitors, K 2013 will again be the undisputed flagship event of the industry and hence the ideal business and contact platform for inspirational ideas and forward-looking decisions. On over 170,000 sqm of net exhibition space in 19 exhibition halls, a comprehensive and clearly structured offering awaits the experts from all over the world. Brazil participates as an exhibitor with 10 important and diversified companies, many visitors and experts in plastic business. “The composition of the Brazilian group of exhibitors reflects the wide variety of companies at K 2013 – there are global players as well as young specialized companies, suppliers of raw materials and auxiliaries as well as machinery producers. The Brazilian companies enrich and complete the range of offers at K 2013”, says Mr. Werner Matthias Dornscheidt, President & CEO of Messe Duesseldorf. Brazil and Germany are already important trading partners, a connection that can still grow. “Brazilian companies have earned a reputation for being well managed, highly professional and innovative”. What is the evolution of K since the last edition in 2010? What’s new for 2013? K 2013 has increased considerably compared to the show three years ago. So one important point is the number and the international composition of the exhibiting companies. Furthermore, there are also new special events and formats such as the special show “Plastics move the world”, the premiere of the Science Campus, the PEPSO Pavilion (Printed Electronics Products and Solutions) and the design chain@K conference. 8 > >Plástico 08 PlásticoSul Sul> >Plástico PlásticoNordeste Nordeste> >Special SpecialEdition Edition- K- K2013 2013>>>>

International crisis has just “The industries of completed five years. How did it affect the plastic Brazil and Germany industry specifically? What give their responses effects should have in relato the challenges of tion to business generated at the fair? What entrepreneurs today and tomorrow. report? They have strong The plastics and rubber companies worldwide were business relations: hit particularly hard by the Brazil is the most global financial and economic important business crisis. Some of their major user industries went into a recespartner of Germany sion, the like of which even in Latin America” long-serving experts had never seen nor considered possible. Shortly before K 2010 economies were picking up again all over the world, and consumption and production strengthened. K 2010 was held at the right point in time and succeeded in providing strong impetus for further growth. And we are convinced that the business platform K 2013 will be as excellent as it was three years ago. We’ll expect about 200,000 visitors from all continents, and they come with high expectations. They are eager to learn about innovative products, technologies and applications. Those exhibitors who’ll meet customers’ needs with interesting solutions will be able to do business with numerous international experts of high decision-making competence. Traditionally, suppliers of machinery and equipment represent the largest exhibitor group. This year will be more than 2/3 of the display area, no? What can visitors expect? You’re right – the machinery and equipment suppliers represent the largest exhibitor group and will take up 119,000 sqm, more than two thirds of the overall exhibition area. It’s about 4,000 sqm more than in 2010. Halls 1 to 4 and 9 to 17 are reserved for those companies. They will show the most extensive range of trend-setting production, processing and machining technologies world-wide. The live presentations of complex production units shown in Düsseldorf’s K exhibition halls are unique. What can visitors expect on raw materials? Manufacturers of raw materials, semi-finished goods, and industrial components will present their products and services in halls 5 to 8a. The raw material producers will take up a net area of 37,500 sqm, almost 3,500 sqm more than in 2010 and almost one fifth of the overall exhibition area. Important subjects include the optimization of standard plastics, biopolymers, specialties and reinforced plastics as well as the latest developments in the structural plastics and functional polymers segments for the production of pioneering applications.


Talk about sustainability at the fair, please. As I’ve mentioned already, K 2013 will present the complete range of raw materials, processing and application technology. In all these segments, energy, resource and material efficiency are the most proliferate topics. As you know, plastics are extraordinarily energy-efficient. They are the key to resourceconserving technologies characterised by low materials consumption, for example, heat insulation of buildings, lightweight design in cars. This hidden property of the material and the progresses in energy and material efficient machinery technologies will be on focus not only at the stands of the exhibitors, but also in particular areas as in the special show “Plastics move the world” and the Science Campus. What are the highlights in the programming that occurs in parallel to the exhibition? (Lectures and panel discussions) There is a range of accompanying events, which promises additional benefits for visitors.Let me mention just a few: At the PEPSO Pavilion (Printed Electronics Products and Solutions) in the North Entrance, print technologies and plastics for functionalised surfaces such as RFID solutions, flexible displays and OLEDs will have a platform in order to be presented to trade visitors from the processing and user industries. Furthermore, a special brochure will help visitors to find all exhibitors that are active in the printed electronics segment. The Design Chain@K Conference will premiere this year. The event will offer both designers and material companies the opportunity to showcase their use of materials in innovative design for a variety of product sectors. The conference will be held in the Congress Center South over two days during K 2013, on the 21 and 22 October 2013. On three mornings during the show (17, 18 and 19 October, 8:00 to 12.30), the Bioplastics Business Breakfasts offer the opportunity to listen and discuss highclass presentations on the latest developements in the sector of bio-based and biodegradable plastics. Talk about “Plastics move the world” and “Science Campus”, please. The special show “Plastics move the world” in hall 6 takes a broad approach to the meaning of the word “to move”. It includes not merely the direct contributions of plastics to different areas of mobility, but also emotional aspects, e.g. their effect on art and design, and their potential for solving future problems such as demographic growth, increasing energy consumption and climate change. As usual, the special show will be hosted in a special area which provides a combination of information, interaction and show elements. The premiere of the new Science Campus is also well worth a visit, it involves presentations by universities and research institutes on pioneering subjects. The shared venue of hall 7.0 provides ideal conditions for a comprehensive overview of the activities and results of scientific organisations and offers ample opportunities for a lively discourse between research and economy.

“Germany was in 2012 you assess that? How will this participation be? the most important Every three years, K Düsseldorf supplier of plastics mirrors the ongoing changes in the global market. Since machinery to Brazil. the last K show in 2010, the The global Brazilian number of exhibitors from Asia companies on the and the overall area booked by Asian companies has grown other hand export substantially. The net exhibitheir products to tion area of the largest five Asian exhibiting nations of Germany and have China, Taiwan, India, Japan even production and South Korea has increased by almost one third (more than plants in our country.” 25,000 sqm in 2013 compared to 18,000 sqm in 2010). Nevertheless, suppliers from Europe and particularly from Germany, Italy, Austria, Switzerland and France will again account for the majority of the exhibitors. And, having recovered from the industry’s crisis years, US exhibitors are also back in force. What is the perception in Europe about Brazilian companies/ products? What Brazilian participation adds to K fair? Brazilian companies have earned a reputation for being well managed, highly professional and innovative. The composition of the Brazilian group of exhibitors reflects the wide variety of companies at K 2013 – there are global players as well as young specialized companies, suppliers of raw materials and auxiliaries as well as machinery producers. The Brazilian companies enrich and complete the range of offers at K 2013. We are in the year of “Germany + Brazil 2013-2014”, with some activities going on here. Talk about the relationship between the two countries in plastics industry? The theme of the year “Germany + Brazil 2013-2014” is very well chosen and suits also perfectly to an international trade show such as K 2013: “Where ideas connect”. The industries of both countries give their responses to the challenges of today and tomorrow. They have strong business relations: Brazil is the most important business partner of Germany in Latin America and Germany is no.1 among the European business partners of Brazil. You’ll find these well established business relations also in the plastics industries of both countries: Germany was in 2012 the most important supplier of plastics machinery to Brazil. The global Brazilian companies on the other hand export their products to Germany and have even production plants in our country. We were happy to welcome more than 4,000 visitors from Brazil at K 2010 and we do hope that there will be as many this year!

The presence of exhibitors from Asia, as well as their exhibition space, increased significantly since 2010, no? How do <<<<Special SpecialEdition Edition- K- K2013 2013< <Plástico PlásticoSul Sul< <Plástico PlásticoNordeste Nordeste< <90 9


DIVULGATION

K’2013: the fair

“Plastics move the world” With the coming of new event and a significant growth compared to the last edition, K’2013 wants to generate good business to the world’s plastic industry.

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2013 opens its doors to the world from October 16th to 23th in Düsseldorf, when over than 3200 exhibitors will present what’s best and most innovating on the multisectoral plastic industry. The event dimension – over than 170000m² of exhibition space in 19 halls – is proportional to the plastic world diversity and to the specialists and visitors desire, for they spend three years preparing to the fair. About 200000 people are expected to come. “They will find the biggest and the most international set of exhibitors, which will make the best platform to information, innovation and investments. I’m sure that many good businesses will be settled in Düsseldorf this year.” – grants Messe Werner’s president and CEO, Mr Matthias Dornscheidt. He says K has grown a lot compared to the last edition, and that we can see that on the exhibitors amount and composition. New events were also created, like the “Plastics Move the World” Show and the “Science Campus”, a new space dedicated to research and innovation.

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There are new spaces and events scheduled, and they will present the latest news on impression, bioplastics and design. The Brazilian industry is represented in K 2013 by ten exhibitor products and services companies from many sectors, which reflect the fair’s diversity, as Dornscheidt himself well observed; there are global players, specialized companies, raw material and components suppliers and also machine producers. Dornscheidt says that there’s a strong commercial bound between Brazil and Germany. “Brazil is Germany’s most important business partner in Latin America and that Germany itself is in the first place between Brazil’s commercial partners in Europe. And this bound is well established in the plastic industry sector too” – he affirms. “Both countries’ industries can provide answers to today’s and tomorrow’s challenges.” Just for you to know a little about the Brazilian brands you can find in K 2013: A. Carnevalli, Braskem, Cromex, Eletro Forming, Inbra Chemical Industries, Mecalor Thermal Engineering and Solutions, Nanox- Antimicrobial Protection, Pavan Zanetti Metallurgical Industry, and Romi, from the Romi and Seibt industries, who works with machines designed specifically for plastics. Pavan Zanetti (15/C 51 Hall) was once


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in K as a visitor and its participation as na exhibitor has a role in a strategy that was settled three years ago, when a new factory construction was agreed. This new factory would have to be large and modern enough to be able to increase the production by that time and to improve the equipments technology. “Our participation in K is the prize for our efforts and it aims to make our brand, which is already well advertised in South America, a better known brand. We want to reach new markets like North America, Africa and the Arabian countries in order to increase our exports, which were downsizing due to the dollar’s descent. And now that we have a better dollar quotation, we hope to increase our exports through our participation in K fair” – says Newton Zanetti. The company will expose a Bimatic BMT model 5.6D / H dual season with 1,000 ml quadruple molds series blower, fully automated and, through its new partnership with the global manufacturer of extrusion heads PZ, W. Mueller will install one of its worldwide known heads monolayers. “We hope to have a good participation in the event in order to return in the next issue with a larger area, since that in this current edition we only managed to have 81m2 due to the fact that it was our first participation. In this fair, due to its importance, anything can happen, even a first world country could take interest in our brand, “ he says. Romi (15/D40 Hall) is in its second K participating, the first one was in 2010. “Our last time here was good to us because we reached a greater exposure among the fair’s players and visitors. We hope to strength our global presence and we will also present the new ROMI EL 75 , EL ROMI ROMI 300 and EN 450 injectors”, says William dos Reis, Romi’s Plastic Machinery Business Unit director. Romi has great experience in exporting its products. Its first export took place in the 40s, when the first lathe was sold to a client in Argentina. “Since 2008, we intensified our plastic machines efforts in foreign markets. Today, we supply machines and we provide the sales and services support to our customers, and we do that through our Romi subsidiaries, which are located in Germany, the UK, France, Spain, Mexico and the United States” says Reis. In the current K edition, Carnevalli (16/D 05 Hall) brought two new equipments: a three layers co-extruder and a 40mm extruder. “The Coex Plus 3 -1600 will be presented to the international market, this machine is a co-extruder that offers an excellent value for money, besides, it’s a very versatile and complete machine, which makes it perfect to transformers that switch orders a lot, because it’s

agile and easy to program. It can be used for technical films manufacture, therm-contractiles, plastic sacks and bags in general. Our focus is on customers who do not have Co-extruders and that are still wishing to enter this market with a competitive product that fits their pockets” says the commercial director, Mr. Wilson M.Carnevalli Son. “We will also bring an E-40 extruder, which is our smallest machine, but it has a lot of potential on emerging customers and markets, because they need smaller machines to fit useful and narrow widths with up to 800mm, machines that would provide them a better value for money” – says him. Electro Forming (3/E 46 Hall) has prepared an institutional stand with videos, photos and some samples of the products their machines can make. That includes all types of thermoforming machines: they produce components from a cut-sheet (these components can be used on refrigerators, car parts, kayaks, dental equipment, fitness equipment and etc.) and they also produce components from plastic rolls of a very small thickness (those can be usable on disposable cups, lids, plates , PET packaging for bakeries and fruit, etc). “We have sold machines mainly for Latin America countries, but also to Turkey, India, Canada, Angola etc. And a lot of businessmen from Brazil also went to K and we have already sold to companies we have known in K. We believe the exports success depends largely on the exchange” said Jorge Lakatos. This is his third K Fair participation. “We hope to make good contacts and sell at least as the other two editions in which we participated,” says Lakatos. Nanox (7.2/ A22 Hall) presents a full

K fair, tradition in the global plastics industry. Issue 1952

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DIVULGATION

K’2013: the fair

K'2013: Over than 3200 exhibitors will present what’s most innovating on the multisectoral plastic industry

range of antimicrobial additives for plastics. These are products made with their own technology and that can be used in applications ranging from commodities to engineering plastics. “Clean Nanox technology, as we call it, is designed to be used in food contact and it was approved by ANVISA and FDA-US. Its use as a product transformation additive, either by extrusion, injection or rotational molding, ensures permanent protection against any plastic surface bacteria or fungi on the surface, and it’s also very useful when you aim to get an additional security with great market potential” says the commercial director Daniel Minozzi. Braskem (6/6D27 Hall) believes that the K Fair is always an excellent opportunity to approach Brazilian and foreign clients. Among the products that we will introduce this year , we must highlight the ‘Braskem Maxio®’ line and the ‘I’m green™’ green polyethylene . “Braskem Maxio ® line concept, represented by a set of products that have a label with the same name, aims to develop the company’s resins portfolio, which will provide a better efficiency to the plastic chain and reduce any environmental impact the transformation process might have. Its benefits are the energy consumption reduction that will happen due to a lower temperature processing, the production cycle reducing and the raw material use reduction that will happen due to the final product properties maintenance. Currently, about eight polypropylene resins and an E.V.A. one are part of this more competitive ans sustainable family and the goal is to make this line grow and have new products”, explains Pier Pesce - Strategic Marketing Director at Braskem.

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Braskem will also bring to the event its already known Green Plastic. In this year’s May, during São Paulo’s Feiplastic, Braskem announced its I’m green™ polyethylene portfolio expansion, which will happen with the launch of the new low-density polyethylene (LDPE) green line. This new resin annual production will be of nearly 30,000 tons and the product will be available in the market from January 2014 on. “This renewable products line expansion reinforces the company’s commitment to creating value through sustainable development for the sector’s productive chain, for the society and for their clients, which have been increasingly seeking for solutions that contribute to the greenhouse gas emissions reduction. And because it is made from raw materials from renewable sources, the Green Plastic contributes to reducing the emission of greenhouse gases” says Pesce. Braskem exports nearly 30% of its polyethylene and polypropylene production, and the main destinations are in South America. On the other side, in North America (Mexico), Braskem started in 2010 a Joint Venture (Braskem Idesa) with investments of about U.$ 3.2 billion in a petrochemical project which will have capacity enough to 1.05 million polyethylene tons and an equivalent volume of feedstock ethylene. The project is already 45% completed and had employed 10,000 people, which represents a very significant increase on the local employment. Among the planned investments for the region, this will be the first to go into operation, on 2015. To attend the American and the European market, the company has also five plants in the U.S. and another two in Germany, which are focused on meeting the PP demands of these markets. About K Fair, he says “Braskem was created on 2002 and was already present in the 2004 K Fair edition, enjoying this opportunity to present itself to an international audience. In this latest edition, we shone by presenting the world’s first industrial-scale plant for the polyethylene-based cane sugar production” He emphasizes that this edition is the first one on which Braskem can be considered a local player. “With our new PP assets acquisition from Dow in 2011, Braskem has now two plants for the production of this resin in Europe. Therefore, our expectation with the fair is to strengthen our bounds to our customers, to promote and to seek new partnerships and to position ourselves as a global petrochemical industry. This fair will be also very important to reinforce our quest for the Sustainable Chemistry leadership.”


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The Plastic in Brazil

The X-Ray of the industry

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he Brazilian plastics industry adds approximately 12,000 businesses, contributing to the generation and distribution of income in the country, the third largest employer in the manufacturing industry, with 348,000 jobs. In 2012 the plastics industry produced about USD 53.83 billion, making 6660 tons of plastic material, which resulted in revenues of USD 56.49 billion, about 7% higher than 2011. Most of the 11,700 companies that transform plastic in Brazil are of medium and small size (82% of Brazilâ&#x20AC;&#x2122;s exports to Germany were from medium and small). Those companies employ more than 350,000 workers being the plastics industry, the third largest employer in the Brazilian industry and paying the highest average salary among the five largest sectors employers in the country. According to the Brazilian Association of the Plastics Industry (Abiplast), from the Brazilian sectors that consume more plastic products in their composition are construction (which consumes 16%), the sector of food and drinks (which also consumes 16%) and the automotive sector and auto parts (15% of the consumption of plastic products). Even the rubber and plastic industry also stands as a major claimant of raw materials plastics since it can use film and plastic sheet to make them into packages that will be resold to another company, for example. Also according to information from Abiplast, the vast majority of companies of the sector are classified as micro and small enterprises (which have up to 100 employees) and are located in south and southeast of the country, adding together more than 85% of companies. The rate of job creation is the industry average of 2% each year, but in 2012 the increase was 1% in relation to number of employees reg16 > PlĂĄstico Sul > PlĂĄstico Nordeste > Special Edition - K 2013 >>

istered in 2011. The sector accounts for 4% of the workforce, busy work in the Brazilian industry and more than half of workers have completed high school.

Recycling

The indices of the Association also indicate that the indicators of recycling post-consumer plastics are inching in the country. For example, the mechanical recycling rate grew 12% compared to 2011, which places Brazil in front of countries like France and Portugal. PET is also recycled plastic material over Brazil, followed by products polyethylene (LDPE, LLDPE and HDPE), which are mostly packaging of foods and beverages.

Performance

There was an increase of 5% in the production of processed plastics (weight) between 2011 and 2012, the same growth hit by apparent consumption. In monetary terms, output growth was about 6%, which was reflected in the growth of sales, which grew by 7%. Already in the case of raw materials, the apparent consumption of thermoplastic resins in Brazil grew by 4% between 2011 and 2012. Polypropylene is the main resin consumed in the country, representing more than a quarter of the national consumption. Other resins that add a small portion of the total volume come gradually gaining share, as in the case of PET resins, EVA and EPS. For 2013, expectations are good. As Abiplast, it is believed that the low GDP growth seen in 2012 will not be repeated in 2013 and that the global consumer market go back to having breath, driving demands directed to the sector of processed plastics.


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Southern Region At the southern Brazil, a major industry

After Sao Paulo, that it is the financial capital of Brazil and Latin America, the South Region of Brazil is where the greatest stake in Brazilian plastic processing industry. And this region, the southernmost state gets the first place at the ranking: Rio Grande do Sul. “The Rio Grande do Sul is a center well established processing plastic and rubber, standing out the presence and proximity chain inputs (1st and 2nd generation) at the city of Triunfo, as well as the existence of a robust environmental technological / scientific (notably CETEPO in São Leopoldo city and LPOL UCS in Caxias do Sul city), a workforce trained, skilled and accustomed with the routine of industrial labor, and the existence of an active industrial policy (in which the plastic strategically fits) “says André Carmona, executive coordinator of the Petrochemical industry, Rubber Products and Plastic Material AGDI (Agency for Development and Investment Promotion). The state also has a diverse and robust manufacturing and therefore, it is an important buyer of plastic. The Plastics Industry of Rio Grande do Sul grew 3% in 2012 and is forecasted to grow by 5% in 2013, double of the expected growth of the Brazilian GDP. Consumes more than 500,000 tons of resin annually and is in second place in the national ranking of the manufacturing industry with 11% of installed capacity in Brazil. Are 1,316 companies for an industry that is an important employer, keeping nearly 30,000 direct jobs over the decade. According to Maxiquim Advice Market, considering the products produced from plastic resins PE’s, PP and PVC, the Plastic Products manufactured at Rio Grande do Sul has exported 9% of the total Brazilian industry of plastic and the half from the southern region. Were more than $ 100 million in 2012. At Rio Grande do Sul, the plastic processing companies are represented by three unions, each belonging to a region: Sinplast (Union of the Industries of Plastic Materials in Rio Grande do Sul), SIMPLÁS (Union of the Industries of Plastic Materials at the Northeast of Rio Grande do Sul) and SIMPLAVI (Union of the Industries of Plastic Materials from the Valley of the Vineyards). Each has its geographic reach and performs independent events, but the exchange of information and knowledge happens. The companies of the plastic processing of Rio Grande do Sul and its representative bodies

Deitos: “The presence of Braskem is a positive approach for the local businesses

already work for a long time in close and strategic relationship with its suppliers of raw materials in the state of Rio Grande do Sul, as Braskem, and Innova Lanxess. This relationship was rooted at an industry program for the direct and constant participation of the Government of the State of Rio Grande do Sul primarily through the AGDI (Agency for Development and Investment Promotion). A delegation of businessmen will visit the K 2013 which is even one more step planned out in that sectorial program. “The plastic processing industry of Rio Grande do Sul is economically integrated with the Triunfo petrochemical complex and with Petrobras refinery in Canoas. Participating in this sector (oil-petrochemical-plastic-rubber) companies such Petrobras, Braskem, Innova, Lanxess, Oxiteno and DSM, as well as plastic and rubber companies which interconnect cost of a cross shape with several productive chains at Rio Grande do Sul: food, agribusiness, furniture, electronics, shipbuilding, automobile, “says Solange Stumpf, Executive Partner of MaxiQuim. She points out that chain consolidated to support these players, as prominent. “The state has a strong industry plaintiff; smaller than São Paulo, yes, but bigger than Rio de Janeiro, for example,” he adds. For Edilson Deitos, president of Sinplast-RS, the goal of the businessmen mission is the pursuit of new technologies, new processes, value-added products and joint ventures. The presence of Petrochemical Braskem in the State, in addition to German and Italian colonization, << Special Edition - K 2013 < Plástico Sul < Plástico Nordeste < 17


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PAULINE GAZZOLA

The Plastic in Brazil

Zeca Martins: “We want to open other possibilities such as direct export

is a positive approach for the local businesses with companies in the European Common Market. The growth of the agricultural implements that is demanding new applications of plastic parts to replace other materialsis also an opportunity to see new alternative materials and production processes at K 2013. The executive director of Simplás, Zeca Martins says that Rio Grande do Sul wants to foster the plastics industry segments such as marine, wind energy, furniture, automotive (light and heavy), agribusiness, construction, packaging in general. He points out that the industry of the state has enough processing technology and quality products. “We have a lot to offer, the trade balance of the plastic industry is negative, but if we consider what is exported - parts produced with plastics in Brazil is a considerable amount. At the Automotive, tractors, buses industry we find many plastic parts and steel and aluminum as well, Consumer Electronics, Furniture exported with plastic parts , “he says. “Marcopolo company purchase from plastic converters in the South and put it on buses exported. If I export indirectly, is because I have quality. We have quality, we do. We want to open other possibilities such as direct export. The market is big and exporting indirectly, who has the international perspective is who buys from the transformer. We want closer contact, direct business. “

Fairs and events

In August, two important events happened in Rio Grande do Sul: Plastech Brazil - Fair 20 > Plástico Sul > Plástico Nordeste > Special Edition - K 2013 >>

of Technologies for Thermoplastic and Thermoset, molds and equipment, organized by the Simplás, and the Brazilian Forum of Energetic Recycling of Solid Residues with emphasis on Plastics - ENERGIPLAST organized by Sinplast. According to Maxiquim, The Plastech Brazil is a major sectorial fair in Brazil and at the 2013 edition confirmed the expectations of business generation and release trends. This year with a great participation of international exhibitors. The Plastech Brazil was also chosen by the program Think Plastic Brazil. to receive a unique edition of the Purchaser Project held outside Sao Paulo this year. “The South, especially Caxias do Sul, is an important center with plastic transformation, with focus to increase the export performed by the export incentive program Think Plastic Brazil.. Due to it, these companies to be in her becomes a strategic approach for the international buyers and Brazilian business sector. The chance to consolidate business is greater when there is this approach “said the executive manager of Think Plastic Wydra Marco Brazil. _ The Think Plastic Brazil. is a program to encourage the export organized by the Brazilian plastic processed parts, focused on packaging and Housewares. “The Plastech is a fair that has been established as a very representative exhibition for the industry because it puts the southern region highlighted, showing how is structured and developed this region of transformation of plastic. And in terms of organization, has left nothing due to the great fairs that normally occur in the Southeast, “he said. The Energiplast aims to present alternatives of valuation of MSW (municipal solid waste) for energy in all its forms and featured with national and international participants. “It was very positive. At each edition increases participation, including public agencies seeking information and demystify concepts. There were a few years ago a reaction to the burning of solid waste, which is already common in Japan, “says Deitos. The Rio Grande do Sul recycles 112,000 tons of plastic per year, which is equivalent to 10% of the total plastic recycled in Brazil. With the holding of the two events in 2013, the business of the Plastics Industry of Rio Grande do Sul reported that the sector expects to invest approximately USD 1 billion in new machinery and equipment in the next two years.

Entrepreneurs of Rio Grande do Sul together at K 2013

The Sinplast, SIMPLÁS and Braskem hired MaxiQuim and the Brazil-Germany Chamber,


DIVULGATION

to create a meeting agenda at K 2013 among companies at Rio Grande do Sul plastic processing and similar enterprises of the eurozone, as well as tooling, organizations and research institutes such as the Fraunhofer Institute. The mission also has the support of the Government of the State of Rio Grande do Sul, through the active participation of AGDI, after all this is one of the goals of the program sectoral mainstreaming in the discussion of strategic actions between the Government of Rio Grande do Sul, entrepreneurs and sector organizations, in the pursuit of sustained growth of the industrial chain of the oil-petrochemical-partsrubber in Rio Grande do Sul. For Solange, considering the current scenario on technological challenges of the plastic processing industry of Rio Grande do Sul in the search for increasing the added-value of their products and, bearing in mind the current economic crisis in the Euro region, the opportunities for prospection and validation of technological partnerships with European companies and local companies in the framework of the K 2013 in Düsseldorf, Germany, are unique. “Being in this mission for K 2013 is another step to strengthen the competitiveness of this important discussion and the industrial chain from Rio Grande do Sul, outlining new strategic steps to strengthen the value chain.” On the other hand, the state offers its market, making of this mission a settlement between the local market and the German technology. Meetings between entrepreneurs aim to develop new business by leveraging the synergies between the companies, as well as vocations and / or opportunities for each country, on which stand the German technology and

the Brazilian market. In this sense, the main areas of interest of the Plastic Industry from Rio Grande do Sul is seek technology suppliers of machinery, equipment and tooling (molds), focusing on the development of new products; seek input suppliers as additives, pigments, masterbatches, which add value to products, development of partnerships between companies to develop products to meet the Brazilian market; export of plastic, development of partnerships in general, from joint venture, merger, acquisition, representation, etc..

Albano: “It is clear that countries like Brazil has huge opportunities due to the expansion of the middle class”

Santa Catarina – a good competitor

Santa Catarina has 852 companies and 8.2% of th share of the Brazilian plastics

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DIVULGATION

The Plastic in Brazil

Denise: “Within the Plastics industry, we were the first state that has joining a project which deals with the Reverse Logistics” says

industry. It is the fourth state in the national ranking, generating 36,000 jobs. “As soon as we receive products imported from around the world, we also have companies that export significant quantities of plastic products. But we have to live with tariff and nontariff barriers, payment issues, credit restriction. Not all business owners know the mechanisms of trade promotion at our disposal, in the form of financing, tax incentives, and the drawback - support tools, but are relatively low used. We have some companies, actually using such instruments and having success, whether in markets of South America, either in Europe or in Africa, “says the president of the Association of the Industry of Plastic Material in the State of Santa Catarina, Albano Schmidt . He notes that “In the globalized world, our competitors are in Chinain Vietnam, in the U.S., Argentina, but also in São Paulo, Alagoas, Bahia and Rio Grande do Sul. No more barriers to the international trade as it had in the ‘80s . The world has changed and are adapted, we acquired technology and we are leaders in Brazil in per capita terms. We are well positioned for this competition. “ According to the executive, the sector of processed plastics tends to grow slightly faster than the GDP due to its properties of strength, flexibility, durability, lightness, among others, which makes it gain market share over other materials, whether in the form of packaging , transport equipment and parts, electronics parts, auto parts, etc.. “In developed countries, the per capita consumption exceeds 120 kg per year, while in Brazil 22 > Plástico Sul > Plástico Nordeste > Special Edition - K 2013 >>

has not reached 30 kg, which allows us to imagine that still have a lot to growth.” Still on growth and business partnerships, he says that “It is clear that countries like Brazil has huge opportunities due to the expansion of the middle class, reducing inequalities. No wonder that the market north northeast has shown the best growth rates. In the world, the fastest growing countries are precisely our biggest competitors: Asians. There are not many opportunities. Already in the African market, not much explored by us so far, there may be better opportunities to grow. “ In Santa Catarina happens the Interplast exhibition in the city of Joinville. The next edition is scheduled for 2014. “The INTERPLAST 2014 will be held in August and represents the second largest industry trade show in South America (the first is FEIPLASTIC, formerly called BRASILPLAST) that happens every two years in São Paulo. The SIMPESC is already working with the fair MESSE BRAZIL and again, a space will be available to member companies to show their products in a booth integrated with SIMPESC “. At the K 2013, SIMPESC will participate as a visitant with a mission with 11 associated companies.

The state of Paraná and the sustainability

The Paraná State has a horizontally industry, with companies that stand for quality and diversity, from recycling to high-tech products. There are approximately 900 companies, 25,000 employees and produces around 450 000 ton / year. The industries of Paraná exports around 19,000 tons / year and the president of SIMPEP - Syndicate of the Industry of Plastic Material in the State of Paraná State, Denise Dybas Dias highlights the products for the automotive industry, construction sector, food packaging and technical parts injection. The manager notes that the state has to become more competitive in the international market, but one of the challenges is the characteristic of micro and Small business industry _. The state stands on issues related to sustainability. “Within the Plastics industry, we were the first state that has joining a project which deals with the Reverse Logistics in the State of Paraná, and also the National Policy on Solid Waste” says.. Today, Paraná has about 200 companies of Recycling of thermoplastic resins that together recycle 100 tons of plastic and generate an average of 3000 direct jobs and over 10 thousand indirect jobs.


DIVULGATION

Northeast’s the fastest growing region The Northeast loaded long stigma of a region of little attraction for investment and high emigration of low skilled labor to other parts of Brazil. For some years ago, however, the situation is completely reversed and all entrepreneurs want to be there. The region goes through an economic boom and social growth with large power consumption and good business opportunities with government support. Several industries in the Southeast and South migrated to Northeast whole or in part, as this is now the second largest market in Brazil for many entrepreneurs. In order to meet the demand, professional education institutions are working hard and will even skilled professionals for the Northeast behind excellent jobs that attract even foreign professionals.

Alagoas: highlighted in PVC

The Productive Chain of Chemical and Plastic of Alagoas is taken as reference in Brazil Consisting of more than 65 companies that integrate from the first to the third generation of production, raw material extraction for industrialization, mostly, almost 80% with small businesses. The first generation, stands Braskem in the PVC. At the third, a major player is Krona, inaugurated in 2012, at the Multifabril pole Aprígio Jose Vilela, in Marechal Deodoro, and produces pipes and fittings. “In Alagoas, the growth of the plastics production chain, almost tripled its GDP in the last ten years, 65 companies have settled in the industrial centers, leading to the biggest Brazilian promoter to duplicate its production . The state is considered the greatest productive plastic power in Latin America, the success of the PVC from Alagoas is the result of a collective construction that over the years has only to grow, “says the president of Sinplast / Alagoas, Wander Lobo. He points out that from 2009 to 2012, the amount of plastic broken off in Alagoas increased from 51831.91 ton / year to 66199.20 tons / year, which demonstrates the visible growth of the sector in the state with investments by the existing businesses and with the coming of others companies. For Lobo, the Productive Chain of structured Chemical and Plastic from Alagoas, combined with a concrete program of government incentives, makes from this state to be

the best destination for investments in the Northeast. Therefore, it shows as advantages industrial centers with adequate infrastructure; Supply Chain organized; government combined with the productive sector; Government incentives for differentiated sector; privileged geographical location (in the center between the North and South of Brazil); largest producer of PVC Latin America; professional training guaranteed by the Center for Plastic Technology - NTPlas; land prices more competitive with other states in the Northeast and lower costs due to the use of natural gas. Companies can also use the Central Utilities and Services Braskem, which ultimately relieve facilities of industrial units in the region, and appropriate environmental solutions. “The favorite destination of tourists also becomes attractive to companies. Today, Alagoas has the largest PVC production in Latin America. Anchored by Braskem, the chain of the chemical and plastic allowed the installation of 10 new industries of medium and large size at the Multifabril Pole. Leveraging logistics facilities of the Port of Maceió and tax incentives, dozens of companies are coming to the state, “said Lobo. Braskem acts strongly at the PVC market, has productive plants that produce resin in Bahia and Alagoas. In Alagoas, the first unit was located in 1988 and in 2012 opened its new plant in the state. Americo Bartilotti, commercial director of PVC at Braskem, says that in the first half of this year, Braskem has grown its sales of PVC in line with the plan, ensuring the

Several industries in the Southeast and South migrated to Northeast whole or in part

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Walter Camara “In Pernambuco we are in a strong advance in industry preform and other products in PET”

DIVULGATION

The Plastic in Brazil

entire allocation of the incremental production, from the new PVC plant in Alagoas, in the Brazilian market. “Following the civil construction sector, and the PVC market continues to grow and continues with good prospects for next year. The deficit in sanitation, dwellings and infrastructure and the great events like the World Cup and the 2016 Olympics will contribute to the continued growth of the demand for PVC products, “he says. The Sinplast-AL takes part in the K 2013, with a business delegation composed of five people.

Pernambuco: attention to the logistics

The plastic industry is developing fast in Pernambuco and waiting for further growth with the implementation of an automotive center and systems suppliers. It is the state which is the port of Suapeone of the main of the country. “Suape is today one of the great ports of structure and flexibility in cargo handling, and the proximity of the metropolitan area and access to the rest of the Northeast,” said the president of Simpepe - Union of the Industries of Plastic Material of Pernambuco, Walter Camara. He says that with this geographic location and logistics hub very strong, Pernambuco stands out in manufacturing plastics. “Now we are in a strong advance in industry preform and other products in PET due to the implementation of raw material production unit M&G”. It also happens in Pernambuco state since 2006 the trade show Embala Nordeste, with a large emphasis on the plastic sector. The last edition of the event took place recently in August. At the time, the 460 exhibitors, 280 were plastic segment. Entrepreneurs fron the nine states from northeastern, take place at the exhibition, but also all over the country, due the strength of the Northeast economy in the Brazilian economy recently. The next edition takes place in 2015 and Câmara says that one of the ideas is to have international suppliers.

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The Plastic in Brazil Interview

What are the last figures from the Brazilian Plastic Industry? Industrial production of processed plastics: at the first eight months of 2013, the physical production of processed plastics grew 2.6% over the same period last year, impacted by positive performance in the production of plastic laminates and various artifacts. Apparent consumption of processed plastics: From January to August 2013 the apparent consumption of processed Brazilian plastics was BRL 41.9 billion, 11.2% higher than that consumed in the same period of 2012. In August/2013 apparent consumption was USD 5.43 billion, virtually the same as in the previous month. Compared to the same month last year, the growth was 1.5 %. ** Database: Econoplast - Abiplast Economic newsletter Talk specifically about the South and Northeast, please. What is the profile of these regions and the position relative to the rest of Brazil?

Northeast: Mr. José Ricardo Roriz Coelho - President of ABIPLAST – The Brazilian Plastics Industry Association

From all the 11,690 Brazilians companies that process plastics (2011), 1,100 are located in the Northeast region. The main segments of these companies are packaging and other plastic segments (automotive plastic parts and household appliances). The region accounts 10% of the Brazilian workforce at the plastic area. There are around 34,000 workers directly employed at the processed plastics area, distributed mainly between Bahia and Pernambuco.

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South:

The southern region has 3,235 companies, representing 27.7% of all plastics companies from Brazil. RS, SC and PR respectively ranks the 2nd, 3rd and 4th position at the states ranking, behind only SP. The region employs 92,293 persons, 27% of the total workforce of the Brazilian sector. Could make a brief assessment of the balance of trade in processed plastics today? In 2012, while domestic demand grew 7%, production fell by 1%, which demonstrates that the market was largely met by imports. Last year were exported USD 2.61 million and imported USD 6.99 million, generating historic negative balance, higher than USD 4.38 million, 20% over 2011. The main products exported are not-reinforced polyethylene laminates, boxes and crates, laminated polypropylene tube umbilicals, reinforced laminates of melamine and buckets for transport. Already imported are: bottles and jars, not reinforced polyethylene laminates, laminated polypropylene, thick self-adhesive tapes, PVC floor covering and kitchen utensils. Besides the conjectural issues, the competitiveness of the domestic industry suffers from resin price, which increased more than 17% since the beginning of the year. Talk about Brazil and Germany at the plastics industry? What are the opportunities for both countries at this relation? In 2012, Germany was the target of 2% of the Brazilian processed plastics exports and rise of 7% of imports. It is a country that has developed its industrial park from micro and small businesses and is now considered the main vector of innovation and technology for the industry, being the K Exhibition, global benchmark in terms of technology and innovation for the processed plastic sector. Whereas that the Brazilian industry of processed plastics is mostly comprised of small businesses , the case of the development of German plastics industry is an important benchmark in terms of strategies for promoting and supporting companies. Brazil is competitive in the export of products with higher value-added ? Which products? The Foreign Trade of plastic processed products is computed and analyzed from two aspects: • Goods of Chapter 39 of the NCM (3915-3926), included in the category of production of plastics (plastics and glassware). • Products classified elsewhere at others chapters that due to its end product characteristic, but are specifically produced with plastic (eg, automotive parts , raffia sacks , plastic furniture , etc. ) . The products of Chapter 39 represent approximately 85% of the trade volume and usually have a lower value per ton exported than 15% other products classified in any other heading of the nomenclature (automotive parts, furniture, textile, etc.). However it is noteworthy that this same configuration is also recorded at the import when it finds that the exported and imported products have the same characteristics . It should be noted that the processed plastic products in general record this same profile of trade in most countries.

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Commercial Relations

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A large market open for the world

A

s already said, the economic opening is recent, at the 1990s . At the plastics industry area, Brazilian companies exported about 5 % of its production in 2012 while imports represent 13% of the consumption at the same period. The trade balance of plastic products has a historic deficit, according to Abiplast , which was deepened in 2012 worth 20 % negative compared to 2011 . The main products exported by Brazil are not-reinforced polyethylene laminates, boxes and crates, laminated polypropylene, umbilical tubes, laminates and resin melamima and boxes for transport. Already the main imported products are bottles and jars, not-reinforced polyethylene laminates, laminated polypropylene, thick self-adhesive tapes, PVC floor covering and kitchen utensils. Already speaking about countries with flow of trade at the plastic transforming market the main export destination are Colombia, Venezuela, Peru, Bolivia, Paraguay, Holland and Angola; talking about origin of imports the UK, Italy , France, India , China , South Korea and Taiwan , and on both sides of the United States , Mexico , Chile , Uruguay , Argentina , Germany , Spain and Japan. Solange Stumpf , CEO from Advisory MaxiQuim Assessoria de Mercado, says that Brazil has to offer to the outside a good local market . “We have a manufacturing market established, diverse and relevant, with 11,000 companies,” he adds. On the other hand, the foreign trade sector is considered incipient. “It’s starting up. The largest industries seeking to be a worldwide company, medium and small companies - who are the majority of the Brazilian industries - take longer because they have the local market as priority, with regional operations. Regionally, the Northeast stands out with greats opportunities, with strong consumption growth of goods and non-durable products, food and drinks, and even durable “partly because the comparison base was weak” says Solingen. The South, stands out with technical parts for heavy industry, especially automobile, with major exporters. It is important remembering that in this context, the plastics appears often hidden at some products.

“We also have a vocation for agribusiness, as well as food, with new packaging,” says Solingen . At the BRICs context, she says that it’s important the characteristic of consolidated industry” This market is growing up, not as others, but it is growing.” On the issue of comparing Brazil 20102013, she remembers what it saw three years ago it was a scene of euphoria about the economy. “It was a time of recovery from the crisis and Brazil recovered fast. Now it’s real, “she says.” And 2014 will be a good year, recovery time, has a good potential. Not as China and India, but we have our characteristics, as already said. “

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Commercial Relations President and CEO of Messe Mr. Werner Matthias Dornscheidt says that the Brazilian companies reached an image of well-managed, highly professional and innovative at the international market. Speaking specifically of Brazil-Germany, the relationship is strong and to gain more market share in Europe , ideas and innovation are the key. “Brazilian companies will succeed with innovative products and solutions, finding new customers and good partners, “he says. It also highlights the activities in various parts of the chain, as well as representing the Brazilian exhibitors at K 2013.

Think Plastic, Think Brazil

The Think Plastic Brazil is a program to incentive the export of processed Brazilian plastic, with a focus on packaging and Housewares. The initiative will complete 10 years next December 2013 and is coordinated by the National Institute of Plastics with the support of Apex- Brazil . Currently, there are about 90 member companies at the database. “The South is a great polo and the plastic processing industry ranks the second place of associated companies. At the Northeast we are still working to get more memberships at the moment we have five companies, “says the executive manager Mr. Marco Wydra . The executive points out that Brazil has a very robust plastic industry and ability to provide quality processed products, but still a country focused on the domestic market. The perception of the Brazilian plastic industry, outside, he said that Latin America has a positive outlook and is the main buyer of the Brazilian plastic products. “But the rest of the world is now beginning to see Brazil as an alternative, because they realize that there are interesting competitive advantages, such as a chain complete, integrated, and stability, labor laws, quality, etc.. China stills the main competitor at this market. “ The Brazilian transformer industry is recognized, for example, as lower added value products, but this situation is changing. “We have heard good reports of export products with more value added by our members, especially for the American market. In volume, commodities still the main representative, “said Wydra.” The challenge to increase competitiveness is many, but the quality of work processes and products, design, innovation and sustainability are the key “. The relationship between Brazil and Germany, Wydra said that the European market is a mature market with focus at many initiatives to promote trade at Europe, Africa and Asia. “For us it is always an opportunity to learn from those who innovates and sets the trends in this market. Besides the fairs packaging, the Program also participates at 30 > Plástico Sul > Plástico Nordeste > Special Edition - K 2013 >>

trade shows and Decoration develops actions tailored for companies interested on this market “. Also in relation to the host country of K 2013, Brazilian entrepreneurs are aware of the important novelties of this nation. With the recent elections, the press have highlighted the impact of the crisis on the life, work and the German economy, which indicated points as low wages and precarious jobs and pensions. A surprise to Brazilians when thinking in Europe’s largest economy and such reference in the plastics industry. “Germany is and remains a strong economy and representative. It is clear that the times are demanding changes in labor relations, but I still believe that the country is a market business partner to be worked, as there are many opportunities. Technology, innovation and design remain high on the agenda and German business. If you invest on it, Brazil can grow and gain more space at this market, “said Wydra .

News

The Think Plastic Brazil repositioned its brand last year. The old brand, Export Plastic, had a communication failure with foreign audiences because they export plastic meant for an action from the country of origin and not something global, export and import, as it should be. “With the change to Think Plastic, Think Brazil, after a strategic planning branding, this problem is solved, since the new brand draws attention to the country as a new and different player at the manufacturing plastic market, a new option, an alternative. And we have had excellent returns, both from our international contacts, we fully understand the message, and for the Brazilians, since this is brand aggregator and does not conflict with the original brands of the company. Want an example? We can say: Think Plastic, Think Brazil, Think Plastech, it is interesting, “says Widra, that is German, and so has this view more property. Besides the brand recently launched the new website of the program. “It’s 10 years on the road and the consolidation of a working export incentive that has brought ‘good results for the plastic industry in Brazil. These changes occurred to communicate better this time promoting more interaction and empathy with stakeholders” says the executive. The program doesn’t have its own stand at K 2013, but is supporting the initiative business of an associated company that will be an exhibitor at fair. It will also hold meetings and visits focused on prospecting and marketing.


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DIVULGATION

Country Economy

Dilma: Brazil has a “stable macroeconomic basis” and the country also consolidated a strong middle class market

Brazil: many aspects yet to develop, many opportunities

B

razil has a lot of surprises. Despite the fact that we’re talking of a very large country, getting from a place to another isn’t always very easy and the urban infrastructure needs a lot of investments, like roads, ports and airports. And it’s exactly on that matter that the Brazilian government seeks for international partners. Most of the Brazilian population have lived for many time in damaged economical conditions – that being so much that Brazil’s slums had got internationally known – but since last decade that’s changing because of the middle classes economical ascent: that class can now invest more not only on clothes but also on better food, education, living and even leisure. In the past few years, Brazilian people started to be able to travel more, for example, and many of them had made their first airplane trip. Brazil’s people are also passing through important changes in their age composition by abandoning the aspect of a mainly young country, that being not only because of the population aging but also due to the birth rates reducing. Brazil’s economic great opening first started in 1990’s. As many other neighboring countries from Latin America, Brazil has passed through many political upheavals and disagreements in the past few decades – that including two decades of nondemocratic governments (1964-1985)-, with a lot of quarrels on Economy and Foreign Affairs matters. The country has already overcome that situation ‘some governments ago’, that being so much that Dilma Roussef were in U.S.A on September for the “Brazil’s Infrastructure Opportunities” business seminar, which was promoted by the Goldman Sachs bank and aimed

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for introducing Brazil to potential investors from abroad, always emphasizing the commitment to a contract as an unarguable condition. “It doesn’t matter who made the deal. It’s your choice not to like him and not to agree with the deal, but you must respect and fulfilled what was settled. I think that started with the President before Lula, but Lula himself also followed that model (…) and all I can say to you is that I will follow it as well. That’s what differs Brazil from the rest of the world: we don’t shuffle on contracts”. – declared the President. In the occasion, the President showed to the audience through databases the ‘Structural Perspectives” of Brazil. She said that, in the past ten years, the GNP (gross national product) had increased in 40%, she also said that 20 million jobs were created, that the salary has expanded in 75% and that the investments grew at a average rate of 6,7% per year. According to Dilma, Brazil has a “stable macroeconomic basis” and the country also consolidated a strong middle class market, with over than 100 million consumers, which favors the private investments.

A new environment

When the last K took place, in 2010, Brazil was having its great moment in the international scenario: it was the “it country”. By that time, Brazil had just been chosen as the host of the World Cup and of the Olympics, and even the country numbers on that year couldn’t lie: a GNP 7,5% growth, the best in many years. The presi-


dent was Luís Inácio Lula da Silva, and he kept his popularity rates high, even after two mandates, that being so much that he was able to elect his own successor, Dilma Roussef, who hadn’t any political expression by that time. Most of the Brazilian people were happy with the middle class growth, the increase of employment and minimum wage and the programs the government created in order to promote an income transfer to the population’s lowest classes. Since then, one Brazilian citizen began to incorporate the list of the World’s Richest People and even the country itself had gained a better place in the international rates, achieving the 6th position in the ranking of the Best World Economies, two things that were unfortunately lost later. From that moment on, thing changed a little. The euphoria had decreased and in 2012, for example, the GNP didn’t reach 1% and a lot of old problems began to show up again, even in low proportions, like inflation. A few months ago, President Dilma had to face a lot of political upheavals in the streets and people from abroad began to question themselves: “What’s happening in Brazil? I thought everything was ok!”

Signs of Recovery

Despite that sad scenario, there are already some signs of a recovery. The Central Bank predicts a 2,5% GNP growth to 2013 and according to Brazil’s Geography and Statistics Institute – which calculates the GNP – the country’s economy had already grown 1,5% in this year’s second trimester, compared to the past trimester. “Considering the fact that we had a good result in the second trimester, I guess we can expect more from the next trimester. But, for now, it’s better to continue with the predicted 2,5% and see what happens. I’m having some signs that our economical situation is getting gradually better”, said Guido Mantega, the Minister of Finance, by the end of September. The Minister informed that, on his travel to U.S.A, he verified that the investors trust in Brazil is increasing again and that the energy and roadways auctions are exciting the foreign investor. “I guess we can start to accelerate our growth, that’s because the economy’s former adverse conditions are getting better, and they were once causing us a lot of disturbing” The GNP – amount of all goods and services produced in the country – totaled BRL 1,2 trillion on April–June period. On the year’s cumulate amount, the expansion reached 2,6% and, in the twelve months ended in June, it closed itself on 1,9%.

According to Mantega, the GNP’s growth should stay between 2,5% and 3% in 2014, compared to 2013. As ‘Agência Brasil’ informed in September and according to Mantega, the GNP’s increase on the next year will happen due to the foreign concessionaires investments on infrastructure sector. “Our goal is to make/grant three or four new roadways this year, at least two new railways, ports and airports” – emphasized him. “Next year we will have all these investments accomplished. It’s our way to increase our GNP on 2014, which will be supported by infrastructure investments” – said Mantega.

Government predicts a 40% GNP per capita growth in the next decade

Brazil’s Finance Minister, Guido Mantega, evaluates a 40% GNP per capita growth between 2013 and 2022, which will lead us to BRL 30.000 by the end of the period, according to ‘Agência Brasil’. According to the Minister, that will demand a 4% GNP average increase, and the investments would have to be increased on about 7% per year. Mantega emphasized that the registered growth from 2003 to 2012 was of 28%, considering that Brazil’s per capita GNP came from BRL 16,600 in 2003 to BRL 21,300 in 2012. In that period Brazil’s GNP grew about 3,6% and the investments had a growth of 5,7%. According to Mantega, in the last decade, there were a lot of investments not only on production and infrastructure but mainly on human resources. The new growth era, emphasizes the Minister, will be stimulated mainly by the infrastructure investments. The government is now focusing on its Grants Program, which invests more than BRL 500 billion on sectors like ports, airports, roadways, railways and electric energy. The Minister also reminds that the Energy and Roadways auctions, which are already happening, aim to transfer their responsibility to the private sector, which can infer more agility to the process. “Investments are a strong GNP multiplier, and they also have a stronger multiplier effect on economy” – declared the Minister. Mantega reminded that, in order to enable investments, the country adopted some cost decreasing measures: the exchange was undervalued strategically in order to favor the raw material costs and the country has also reduced its energy and workmanship costs through payroll exemptions like financial (interest rates) and tributary (taxes) costs reducing.

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National Associations ABIPLAST - Brazilian Association of the Plastic Industry Av. Paulista, 2439 - 8º andar 01311-936 - São Paulo - SP Phone (55 11) 3060-9686 Fax: (11)-3612-8988 www.abiplast.org.br - abiplast@abiplast.org.br President: Jose Ricardo Roriz Coelho ABIEF - Brazilian Association of the Packing Industry. Flexible plastic Av. Brigadeiro Faria Lima, 2081 - 3º andar cj. 32 - 01452-908 - São Paulo - SP Phone (55 11) 3032.4092 - Fax: (11) 3032.2021 Site: www.abief.com.br - email: abief@abief.com.br President: Alfredo Felipe O. Schmitt AFIPOL - Brazilian Association of Polyolefinics fiber Producers Av. Paulista, 1439 - 2º andar - cj. 21 01311-926 - São Paulo - SP Phone (55 11) 3253.7236 / 3251-2707 - Fax: (11) 3251.2886 Site: www.afipol.org.br E-mail: afipol@afipol.org.br President: Ricardo Vívolo ABMACO - Brazilian Association of Composite Materials Av. Prof. Almeida Prado, 532 Prédio 31 - térreo - Sala 1 05508-901 - São Paulo - SP Phone (55 11) 3719.0098 - Fax: (11) 3719.0098 Site: www.abmaco.org.br E-mail: abmaco@abmaco.org.br President: Gilmar Lira ABIPET - Brazilian Association of the PET Industry Rua Joaquim Floriano, 72 - cj. 85 04534-000 - São Paulo - SP Phone (55 11) 3078.1688 - Fax: (11) 3078.1688 Site: www.abipet.org.br E-mail: secretariabipet@abipet.org.br President: AuriMarçon ABRAPLA - BrazilianAssociation Industry of Plated Plastic and Flexible Foam Av. Treze de Maio, 47 - sala 709 20031-007 - Rio de Janeiro - RJ Phone (55 21) 2262.1706 - Fax: (21) 2240.8372 Email: abrapla@bighost.com.br President: Jose Carlos Soares Freire

Unions of the South and Northeast Regions of the country SIMPEP - Plastic Material Industry Union of the State of Paraná Rua João Negrão, 731 - 3º andar - sala 301 80010-200 - Curitiba - PR Phone (55 41) 3224.9163 - Fax: (41) 3222.4551

Site: www.simpep.com.br E-mail: simpep@simpep.com.br President: Denise Dybas Dias SIMPLAS-NP - Union of the of Plastic Material Industry of the North of Paraná Rua Pernambuco, 390 - 12º andar - sala 1208 86020-913 - Londrina - PR Phone (55 43) 3337.1390 - Fax: (43) 3337.1390 Site: www.simplasnp.com.br E-mail: simplas@sercomtel.com.br President: Sueli Souza Baptisaco SIMPESC - Union of the Plastic Material Industry of the State of Santa Catarina Rua Abdon Batista, 121 13º andar - cj. 1301 / 1302 89201-010 - Joinville - SC Phone (55 47) 3433.2351 - Fax: (47) 3433.5749 Site: www.simpesc.org.br E-mail: simpesc@simpesc.org.br President: Albano Schmidt SINPLASC - Union of the Plastic Material Industry of South Catarina Rua Ernesto Bianchini Góes nº91 - 2ºandar Ed. Centro Empresarial de Criciúma 88815-030 - Criciuma - SC Phone (55 48) 3461.0933 email: sindicatospatronais@acicri.com.br President: Jayme Antonio Zanatta SIAPB - Union of the Industries of Plastic Devices and Toys of Blumenau Rua F. EstanislauSchaette, 111 - sala 07 89037-001 - Blumenau - SC Phone (47) 3329.1855 - Fax: (47) 3329.0535 email: siapb@terra.com.br President: Rubens Giese SINDESC - Union of the Dismissable Plastic Industries of the Estate of Santa Catarina Rua Desembargador Pedro Silva, 540 7º andar - Sala 702 88802-300 - Criciuma - SC Phone (55 48) 3433.7420 - Fax: (48) 3433.9083 email: abrade@engeplus.com.br President: Gustavo de Villa SINPLAST - Union of the Plastic Material Industry of Rio Grande do Sul Av. Assis Brasil, 8787 - Sarandi 91140-001 - Porto Alegre - RS Phone (55 51) 3364.4503 - Fax: (51) 3364.4503 Site: www.sinplast.org.br E-mail: sinplast@sinplast.org.br President: Alfredo Felipe de Oliveira Schmitt SIMPLÁS - Union of the Plastic Materials Industries of northeast of Rio Grande do Sul Rua Ítalo Victor Bersani. 1134 - Jd. América

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95050-520 - Caxias do Sul - RS Phone (55 54) 3228.2422 - fax: (54) 3228.2090 Site: www.simplas.com.br E-mail: simplas@simplas.com.br President: Orlando Antonio Marin SINDIVERDE - Union of the Recycling Companies of Domestic and Industrial Solid Residues in the State of Ceará Av. Barão de Studart, 1980 – 3º Andar Aldeota - 60120-901- Fortaleza-CE Phone: (55 85) 3224.9400 email: sindiverde@sfiec.org.br President: Marcos Albuquerque SINDIPLAST/PB - Union of the Plastic Material Industry and Syntetic Resins of the Estate of Paraíba Av. Assis Chateaubriand, 919 - Liberdade 58414-060 - Campina Grande - PB Phone (83) 3315.1523 - Fax: (83) 3341.2888 Email: alexandre@felinto.com.br President: Pericles Felinto de Araujo SINDIPLASBA - Union of the Plastic Material Industry of Estateof Bahia Av. Santos Dumont, s/n - Shopping do Côco, 4ºandar, sala 435 42700-000 - Salvador - BA Tel: (55 71) 3379-8066 - Fax: (71) 3342-2161 Site: www.sindiplasba.org.br E-mail: sindiplasba@sindiplasba.org.br Presidente: Luiz Antônio de Oliveira SIMPEPE - Union of the Plastic Material Industry of the State of Pernambuco Av. Cruz Cabuga, 767 - 5º andar - sala 01 50040-000 - Recife - PE Phone (55 81) 3412.8300 - Fax: (81) 3412.8405 Site: www.simpepe.org.br E-mail: simpepe@fiepe.org.br President: Fernando Antonio de Araujo Pinheiro SINPLAST/AL - Union of Inks and Plastics Industry of the State of Alagoas Av. Fernandes Lima, 385 - 5º andar 57055-902 - Maceio - Al Phone (55 82) 2021.6985 - Fax: (82) 2121.3083 Email: arasil@ofm.com.br President: Wander Lobo Araujo Silva SIMPLAVI - Sindicato das Indústrias de Material Plástico do Vale dos Vinhedos Alameda Fenavinho, 481 95700-000 - Bento Gonçalves - RS Phone: (55 54) 3454.5734 E-mail: simplavi@terra.com.br Presidente: Emílio Ristow More informations: 55 51 3062.4569


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Especial k 2013