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Why Minas Gerais

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STATE GOVERNMENT OF MINAS GERAIS Breno Batista Sardenberg Information and content

Davyson Demmer Fábio Alves

Breno Batista Sardenberg Revision Letícia Vargas Bento

Daniel Pedersoli Luiza Lages Translation

Marco Oliveira Otávio Rezende Victor Alchaar

Lucas Rossi Design Simão Pedro Oliveira

INDI Minas Gerais Investment and Trade Promotion Agency February, 2019


Minas Gerais

Introduction

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Why Minas Gerais

In Minas Gerais, the mountains preserve not only natural riches, but also a creative capacity constantly explored. The state has a native ability in doing good business and gathers characteristics that allow ideas to become opportunities. Excellent teaching institutions guarantee knowledge development and its specialisation, fostering the ingenious spirit that fuels Minas. Here we build the future and enterprise. Here business thrives. Our people are able to cultivalte not only coffee, but also good and enduring relations. Articulation, networking and aliance-building are legacies of our gregarious manner. After being familiarized with Minas Gerais, it becomes clear that the treasures kept here are more than historical heritage cities or the flavour of our pão de queijo (Brazilian cheese bread): It is the combination of diverse elements and ingredients – as you are about to see in the next pages – that make Minas Gerais

Precious

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Minas Gerais

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Why Minas Gerais

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Brazil

8


brazilian market

Why Minas Gerais

209 million inhabitants

8 th largest world economy GDP US$ 2.05 trillion (2017) 275.38

4 th largest FDI influx US$ 62.71 billion (2017)

136.32

8 th country

104.33

Most quoted by CEOs to broaden their businesses in the next 12 months (22nd Annual Global CEO Survey, January 2019, Pwc)

5 th largest country In territorial extension, allowing for great economic diversity in its different regions

R$ 4.45 trillion Is the 2018 projected national consumption (iPC Marketing)

62.71

62.00

57.95

49.79

46.36

40.98

39.91

Source: UNCTAD/FDI INFLOWS (2017) 9


Why Minas Gerais

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Minas Gerais

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location

Why Minas Gerais

Brasília Belo Horizonte

Rio de Janeiro São Paulo

Minas Gerais is located in the Southeast Region of Brazil (the most developed region in the country), with easy access to consumer markets and a privileged location. Neighbor to states such as São Paulo and Rio de Janeiro and the Center-West and Northeast Regions, the state of Minas Gerais is the main business corridor in Brazil. 13


Minas Gerais

economy

Third largest Brazilian economy US$ 179.69 GDP in 2017 Second largest exporting state in Brazil US$ 24.52 billion in 2017 Second largest population in Brazil: 21 million inhabitants (roughly the size of Australia) Larger than France or Spain in territorial extension Located in the southeast of Brazil, which is responsible for 54% of the Brazilian GDP (IBGE) The state’s GDP is comparable to countries such as Hungary (US$ 126 billion), New Zealand (US$ 188 billion) or Czech Republic (US$ 195 billion) All these features contribute to the existence of an economic environment marked by diversified sectors, making the state the second largest consumer market in Brazil.

Source: Direi/FJP (Minas e-dados), MDIC/Comex Stat, UNCTAD 14


consumer market

Minas Gerais has the second largest consumer market in Brazil, with a 10% share, only behind the state of SĂŁo Paulo. Considering the Southeast region as a whole, companies from Minas Gerais have a considerable logistic advantage: easy access to 48.81% of the Brazilian consumer market, with a consumption potential estimated at R$ 2.16 trillion in 2018. The region also concentrates 50.58% of the 20.78 million Brazilian companies. Share in the consumer market(%)

Ranking

SĂŁo Paulo

28

1

Minas Gerais

10

2

Rio de Janeiro

9

3

Rio Grande do Sul

7

4

ParanĂĄ

6

5

Brazilian state

Belo Horizonte, the state capital, stands out for being the 4th largest Brazilian city in terms of consumer potential, with a share of 1.7%.

Why Minas Gerais

Regional share in the Brazilian consumer market

8%

6%

18%

49%

19% Southeast

Northeast

Center-West

North

South

Source: Based on iPC Marketing data 15


Minas Gerais

consumer market

An example of the consumer market potential in Minas Gerais is represented by the evolution of its share in the national vehicle registration (cars, light commercials, trucks and buses). In the last decade, Minas Gerais presented the largest growth among the top states.

Brazilian state shares in vehicle registration 35.00%

32.43%

30.00%

26.58%

25.00%

19.14%

20.00% 15.00%

11.11%

10.00% % 5.00% % 0.00% 2008

16

2009

2010

2011

2012

2013

SĂŁo Paulo

Minas Gerais

ParanĂĄ

Rio Grande do Sul

2014

2015

2016

2017

2018

Rio de Janeiro Source: ANFAVEA


gross domestic product

Why Minas Gerais

Between 2002 and 2017 the state of Minas Gerais had a GDP growth of about 362%

573 billion

GDP | current prices (R$ billion)

124 billion

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Sources: Direi/FJP; Minas e-dados 17


Minas Gerais

gross domestic product

GDP | Break-down by sector (2016) The largest part of state’s value-added production comes from the service sector, which accounts for more than 69.7% of the total production. Among services, those related to health provision, education and commerce stand out. Industry is responsible for more than 24.4% of the state’s production, with emphasis on the transformation industry and mineral extraction. In agriculture, grain-producing activities, such as coffee and soy, as well as cattle raising and milk production stand out.

Agribusiness 5.8% Industry 24.4%

Services 69.7% Source: Direi/FJP 18


Why Minas Gerais

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Minas Gerais

gross domestic product

Share of Minas Gerais mesoregions in the overall state

GDP - 2016

Norte | 4,3% | Jequitinhonha | 1.3% | Noroeste | 2.1% |

Vale do Mucuri | 0.9% |

Central Mineira | 1.8% |

Vale do Rio Doce | 5.7% |

Triângulo Mineiro/Alto Paranaíba | 16.8% | Metropolitana de Belo Horizonte | 40% | Oeste | 4.3% | Campo das Vertentes | 2.1% | Sul/Sudoeste | 12.7% | Source: Based on Direi/FJP data 20

Zona da Mata | 8.1% |


main activities by mesoregion

Triângulo Mineiro e Alto Paranaíba

Oeste

Coffee

Metropolitan de Belo Horizonte

Agribusiness

Metallic mineral extraction

Food Products

Food Products

Automotive and automotive parts

Agribusiness (cattle, poultry and coffee)

Sul/Sudoeste

Automotive and automotive parts Textile Electronics Non-metallic minerals

Metallurgy (pig iron, foundry and laminated steel) Construction industry Life sciences

Cargo Transport Sugar and Ethanol Food products Chemical products Wholesale

Cargo transport

Information and Comunication Technology (ICT)

Tourism

Food & beverage

Norte

Helicopters

Tourism

Agribusiness (cattle and fruit)

Cattle Raising Iron and Steel foundry Ethanol Cargo Transport Non-metallic minerals Metallurgy Leather and footwear Clothing manufacturing

Forestry production

Campo das Vertentes

Noroeste

Vale do Mucuri

Textile

Agribusiness

Agribusiness (cattle and soy)

Cattle Raising

Food products

Food Products

Mineral extraction (iron, aluminium and tin)

Food Products

Metallurgy (pig iron and non-metallic minerals)

Leather and Footwear

Petroleum Coke, petrol. & by-products

Petroleum Coke, petrol. & by-products

Ferroalloys

Ethanol Cargo Transport

Vale do Rio Doce Steel Industry

Central Mineira

Metal Products

Agribusiness (cattle)

Agribusiness

Forestry production

Food Products

Food production (dairy)

Paper and Cellulose

Textile

Metallurgy (pig iron and precious minerals)

Metallurgy (Non-ferrous metals and their alloys)

Why Minas Gerais

Non-metallic minerals Cargo Transport Automotive Parts

Zona da Mata Clothing manufacturing

Jequitinhonha

Food Products

Agribusiness (cattle and coffee)

Wood Furniture Cattle and Pig breeding Textile Metal Products Cargo Transport

Forestry production Precious and ornamental stones Non-metallic mineral extraction and products

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Minas Gerais

industry

Regarding the industrial production value in Minas Gerais, there is a strong presence of the construction sector, with a share of nearly 22.5% in 2016. Noteworthy as well is the food sector, with 12.7% of the industry, followed by metallic minerals extraction, with a 10.8% share. Together with metallurgy, these groups represent 56% of the industrial transformation in the state. Construction 22.5%

Minas Gerais industry data (2016) Industrial GDP: R$118.4 billion 10.3% of the Brazilian industry Over 1 million Jobs Other 24.7% Tobacco 1.6% Beverages 2%

INDUSTRIAL PRODUCTION VALUE 2016

Metal Products 2%

Food 12.7%

Non-metallic minerals 2.2% Chemical Products 3.8% Metallic minerals extraction10.8%

Petroleum Coke and fuel 3.8% Automotive vehicles 3.9% Metallurgy 10% 22

Source: CNI, Direi/FJP


industry

Why Minas Gerais

Almost 60,000 industrial companies are installed in Minas Gerais, accounting for 12.6% of the Brazilian industrial companies in 2017. More than 39% of the industrial employees work for large companies (those which employ over 250 people).

DISTRIBUTIONS OF INDUSTRIAL COMPANIES BY SIZE

DISTRIBUTIONS OF INDUSTRIAL EMPLOYMENT BY COMPANY SIZE

4.2% 1%

13.3% 23.2%

20.4%

74.5%

23.8%

39.8% Source: CNI 23 23


Minas Brazil Gerais

demographics

Minas Gerais has over 21 million inhabitants (about 10% of the Brazilian population). Nearly 85% of them live in the urban areas of the 853 municipalities of the state. In 2018, the population estimate of Belo Horizonte’s Metropolitan Area (RMBH), comprising 34 municipalities, was of 5.31 million inhabitants, of which 2.5 million live in Belo Horizonte, the capital. There are 13 municipalities in the state with over 200 thousand inhabitants and 16 with between 100 and 200 thousand. The state’s HDI is considered high according to UN standards and life expectancy, over 77 years, is above the Brazilian average.

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Why Minas Gerais

demographics

Feature

Minas Gerais

Brazil

MG/BR (%)

Area (km2)

586,520.73

8,515,759.09

6.8

Population – 2018*

21,040,662

208,494,900

10

84%

84.7%

-

Economically Active Population – 2015 (thousand inhabitants)

11,395

104,835

9.2

Employed population – 2015 (thousand inhabitants)

10,361

94,820

10.9

Population density (inhab./km2)

35.87

24.48

-

Life expectancy at birth – 2018 (years)

77.7

76.3

-

Human Development Index (HDI) – 2010

0.731

0.727

-

Birth rate (births/1,000 persons) – 2018**

12.86

14.41

-

Total fertility rate – 2018 (children/woman)**

1.62

1.77

-

Population-growth rate – 2018**

0.63

0.82

-

Rate of urbanization – 2015

*

Estimate

based on IBGE’s population projection, revised in 2018

**

Source: IBGE, Direi/FJP 25


Minas Gerais

logistics and infrastructure

Minas Gerais boasts a privileged location in Brazil, being in the center of the Brazilian Southeast Region and connecting the Center-West and the Northeast to the states of São Paulo, Espírito Santo and Rio de Janeiro, where some of the major Brazilian ports are located. Therefore, Minas Gerais stands as the main logistics corridor in the country, responsible for a high volume of inland transportation of cargo. In addition, Minas Gerais has five Inland Customs Units (EADI), known as “dry ports”, located in: Betim Juiz de Fora Uberaba Uberlândia Varginha The main advantage of dry ports is their greater speed in the process of customs clearance.

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Location of the main ports in the Southeast Region


logistics and infrastructure

Why Minas Gerais

Location of the main airports in the state

Montes Claros

Uberlândia

Uberaba

The most important airport of Minas Diamantina Gerais is the Patos de Minas Governador Valadares BH Airport. About 40 kilometers to the Ipatinga Belo Horizonte Araxá north of downtown Belo Horizonte, it Divinópolis Belo Horizonte is one of the top five Passos São João airports in Brazil and del Rei registers a flow of over 10 Varginha million passengers/year, with Juiz de Fora international flights to Europe, Pouso Alegre United States and Central and South America.

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Minas Gerais

logistics and infrastructure

Minas Gerais has the largest road network and the second largest railway network in Brazil. Natural Gas: Controlled by CEMIG and the municipality of Belo Horizonte, GASMIG distributes about 4 million m3/day of natural gas to all major industrial centers of Minas Gerais. Sanitation: COPASA is the second largest sanitation service provider in Brazil and is nationally renowned for the quality of its work. The state’s industries consume more than 17% of Brazil’s industrial energy, supplied mainly by the Minas Gerais Energy Company (Companhia Energética de Minas Gerais – Cemig). Infrastructure

MG

Brazil

MG/BR (%)

Energy Installed capacity - 2017 (MW)

15,115

157,112

9.6

Energy Generation - 2017 (GWh)

44,922

587,962

7.6

Energy Industrial Consumption - 2017 (GWh) 29,242

167,398

17.4

Energy Total Consumption - 2017 (GWh)

54,240

467,161

11.6

Paved Roads - 2017 (km)

31,554

213,452

14.8

Railway - 2017 (km)

5,296

30,621

17.2 Sources: EPE, CNT, DNIT, Direi/FJP

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logistics and infrastructure

Why Minas Gerais

29 29


Economy

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Why Minas Gerais

31


Economy

32


agribusiness

AGRIBUSINESS in Minas Gerais has plurality as one of its main features. The climate, soil and terrain diversity contribute to the establishment of several business in many fields of this economic activity.

Why Minas Gerais

Agribusiness is the state’s 3rd economic activity in terms of jobs creation, employing 236,000 people in 2017

Minas Gerais is the largest milk producer in Brazil, accounting for 26.7% (8.9 billion liters) of the national production in 2016. In the following year, the state’s milk production reached almost 10 billion liters. Milk processing and dairy production take place in more than 700 plants all over the state. Some of the most important players in this sector, such as Danone, Itambé, Embaré and Cemil, are located in Minas Gerais. As for grains, corn and soy represented 89.3% of the state’s production in 2017, around 14.3 million tons. In 2016, Minas Gerais accounted for 60.7% of the national production of coffee. In 2017, with the production reaching 1.68 million tons, coffee and coffee products were responsible for 43.4% of the state’s agribusiness exports and 65.5% of national exports in the same category. Growing conditions in southern Minas Gerais make the region the main coffee producer in Brazil. According to the Brazilian Specialty Coffee Association, the state presents the biggest concentration of specialty coffee producing regions.

Coffee 43.4%

Sugar and alcohol 43.4%

Soybean Complex 13.8%

Meat 12.3%

Forestry Products 8.1%

Leather 1%

Other 6%

Source: IBGE, SEAPA-MG, RAIS 33


Economy

agribusiness

Highlights National 1st place in: Coffee production and exportation Milk production Potato production Horse breeding Zebu genetics – largest hub in the world

Also noteworthy is the Cândido Tostes Dairy Institute, which, since 1935, has been giving decisive

National 2nd place in:

contributions to the permanent growth of the

Cattle raising Sugar production Bean production

Brazilian dairy industry by developing and sharing technology, as well as providing training for the sector’s personnel and technicians.

And also 3rd largest sugar cane and etanol producer.

Minas Gerais is home to Scientific and Technological Institutions (ICT) reference in animal and vegetal genetic improvement. The Viçosa Federal University (UFV) develops projects in the field of agricultural genetic improvement and the city of Uberaba hosts the Center of Excellence for Bovine Genetics of the Brazilian Zebu Breeders Association (ABCZ) 34


agribusiness

Share of Minas Gerais in Brazilian Agribusiness GDP (%)

Why Minas Gerais

192.3

Source: CNA/FAEMG

R$ billion (2017)

1,223.8

13.7 12.3 11.1 9

9

9.7

10.8

11.1

13

12.6

13.1

13.5

13.8

13.6

11.4

9.6

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Economy

food and beverage

FOOD AND BEVERAGE Minas Gerais has a very diversified beverage sector as well, producing cachaça (Brazilian rum spirit), beer, soft drinks, energy drinks, juices, and so forth. AMBEV has 4 factories and 10 distribution centers in the state. One of the productive units, located in Uberlândia, is 1.3 million square meters large and employs 480 people The FEMSA Coca-Cola factory in Itabirito is the group’s most modern facility The first Nestlé’s factory outside Europe producing NESCAFÉ® Dolce Gusto® coffee capsules is also located in Minas Gerais. This unit uses 100% Brazilian coffee and other national raw materials, such as milk cocoa and sugar Renowned cachaça producers, like Salinas, Vale Verde and Caribé, are as well from Minas Gerais A significant number of specialty and craft breweries were born in the state, such as Wäls, Backer, Falke Bier and Krug Bier

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The state is also home to a wide variety of companies in the food sector, comprising all levels of food processing. Some of the food companies established in the state are: Algar Bauducco/Pandurata Barry Callebaut Cargill Danone Ferrero Kopenhagen PepsiCo Unilever Yoki The Lavras Federal University (UFLA) has the largest number of students enrolled in the course of Food Engineering in the state, and the Juiz de Fora Federal University (UFJF) has the largest number of students enrolled in Nutrition.


Why Minas Gerais

food and beverage

Universities offering courses in Food Engineering in Minas Gerais (2017) Enrolled: 2.14 thousand students. Lavras Federal University (UFLA)

17,1%

22,1%

Viçosa Federal University (UFV) São João Del-Rei Federal University (UFSJ)

6,1% Triângulo Mineiro Federal University (UFTM)

6,3%

Minas Gerais Federal University (UFMG)

21,3%

7,1%

7,7%

South Minas Gerais Federal Technology Institute Uberlândia Federal University (UFU)

13,3%

Other Source: DataViva 37


Economy

mining

Largest national producer of iron ore, gold, zinc, phosphate, graphite and lithium

MINING

World’s largest producer of niobium One of the main national producers of limestone More than 300 mines operating in the state Responsible for 53% of metallic minerals’ production of Brazil and 29% of overall national minerals’ production The state has 40% of the BrazilIan biggest mines and 67% of the national mines producing over 3 million tons/year Source: ANM, IBRAM

Barite Basalt Diamond

Gold Lead Limestone

Niobium Phosphate Rare Earth Elements Zinc

Diamond Feldspar Gemstones

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Agalmatolite Aluminum Emerald Gold Granite

Iron Ore Kaolin Limestone Manganese

Gold Granite Graphite

Marble Mineral Water Phyllite Quartz

Kaolin Limestone Mica

Quartzite Slate Talcum Topaz

Lithium Quartz Quartzite


mining

Why Minas Gerais

3 among the top 10 5 among the top 20

16

9

6

49 programs 25 programs

Source: INEP/IGC (2017), INEP/CES (2017), CAPES/GEOCAPES (2017) 39


Economy

metal and steel industry

METAL AND STEEL INDUSTRY Minas Gerais has the most important steel industry in Latin America (largest Brazilian steel, pig iron and ferroalloys producer) and counts with some of the main companies operating in Brazil. There are also important equipment suppliers strengthening this sector in the state, besides excellent education institutions, such as UFMG and UFOP. The importance of tThis production chain is also responsible for a substantial amount of tax collection and job creation in different regions, such as Central, Vale do Aรงo, Vale do Rio Doce and Zona da Mata.

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1st STEEL PRODUCER 30.5% of the national crude steel production in 2018 1st CEMENT PRODUCER 21.4% in 2017 1st ZINC PRODUCER 100% of the national production 2nd AUTOMOTIVE HUB IN BRAZIL 13% of the national vehicle manufacturing and 13.8% of the revenue in the auto parts sector in 2018

Sources: Anfavea, DNPM, Instituto Aรงo Brasil, SNIC.


metal and steel industry

Why Minas Gerais

Industrial production – selected products Products

Brazil

Minas Gerais

MG/BR (%)

Ranking

Processed Iron Ore – 2016 (millions of tons)

421.35

269.32

62.5

1st

Pig iron – 2017 (millions of tons)

3.81

2.77

72.7

1st

Crude steel – 2018 (millions of tons)

34.73

10.59

30.5

1st

54

11.57

21.4

1st

94.45

32.28

34.2

1st

Locomotives – 2016

64

64

100

1st

Helicopters – 2015

12

12

100

1st

Niobium – 2016 (thousand tons)

142.79

109.04

76.4

1st

Vehicles – 2018 (thousands)

2,893

376.18

13

2nd

Zinc – 2015 (thousand tons)

270.71

270.71

100

1st

Cement – 2017 (millions of tons) Gold – 2016 (tons)

The Minas Gerais’ industry is the second largest in the country, representing 10.3% of the Brazilian industrial GDP (2016).

Sources: ANFAVEA, Instituto Aço Brasil, DNPM, SINDIFER, SNIC 41


Economy

automotive and transport

AUTOMOTIVE AND TRANSPORT

Minas Gerais is home to the 2nd largest automotive hub in Brazil, with 13% of the national production in 2018. It has a consolidated production chain and is also a great producer of primary material for the automotive industry. The state’s industry also stands out in other transportation modals: Only helicopter factory in Latin America Only locomotive production plant in Brazil

Main domestic markets (registration of new vehicles) State

2017

2018

São Paulo

26.5%

26.5%

Minas Gerais

19.1%

19.1%

Paraná

6.4%

6.6%

Rio Grande do Sul

5.9%

5.8%

Rio de Janeiro

5.8%

5.4%

Source: Anfavea (2017)

THE SECTOR’S MAIN PLAYERS IN THE STATE ARE:

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FCA (Fiat)

XCMG

Landini

Iveco

Helibrás

GE Transportation (locomotives)

Mercedes-Benz

CNHi

EMD (locomotives – CaterpillarGroup)


automotive and transport

Minas Gerais is the 2nd state in number of companies affiliated to the National Union of Automotive Components Industry – SINDIPEÇAS, with 59 business units (almost twice the 3rd place).

State Competitiveness Ranking Average wages in the mechanical industry (R$)

Why Minas Gerais

Minas Gerais Shares Revenue

13.8%

Employees

12.2%

Business units (affiliated or not)

8.9%

Exports

6.5%

Imports

3.7% Source: Sindipeças (2018)

4,873.18

5,000.00

4,207.34 4,000.00

3,542.91

3,651.25

3,047.61 3,000.00

2,000.00

1,000.00

0.00 Source: RAIS, 2017 43


Economy

aerospace

AEROSPACE

The aerospace industry in Minas Gerais stands out both nationally and internationally due to the presence of higher education institutions and also big companies such as Embraer, Helibras, IAS, GOL and Azul. Through initiatives that gather research institutes, universities, industry and government, the state is set on strengthening its competitive advantages in the sector. Minas Gerais is home to the only helicopter factory in Latin America. With R$ 750 million in investments until 2016, BH Airport (the concessionary company responsible for the administration of Confins International Airport) increased its capacity to 22 million passengers/year. Until 2025, the total investment will amount to R$ 1.5 billion.

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Workforce In Minas Gerais, many institutions provide qualified professionals every year to the aerospace sector. There are, for instance, courses in aerospace engineering at UFMG and FUMEC, both in Belo Horizonte. The Itajubรก Federal University offers a course in aerospace mechanical engineering with emphasis in helicopter manufacturing. In addition to those higher education institutions, SENAI-MG also offers a technical course in aircraft maintenance. In 2015, UFMG students and professors developed the fastest plane on Earth.


aerospace

Why Minas Gerais

PASSENGER TRAFFIC GROWTH BH Airport (Confins) 11,304,284 10,922,433 10,398,296 10,301,288

10,591,138 10,164,077 9,638,789

9,534,987

7,261,064

5,617,171 4,826,193 4,316,411 3,727,501

+ 184%

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018 45


Economy

life sciences

2nd largest Brazilian hub LIFE SCIENCES

Biotechnology and Life Sciences

Over 200 biotechnology and life sciences companies Source: Biominas

The first biotechnology company in Brazil (Biobrás) was founded in Minas Gerais, in the 1970’s, and later acquired by Novo Nordisk, in 2001.

related to life sciences, many of which excel at the national level or fulfill international quality standards, according to the classification set by CAPES.*

Today, the sector counts with dozens of companies born in the state and many other multinational companies, such as ACG Worldwide, GE Healthcare, Novo Nordisk, Philips VMI and St Jude Medical.

Also of great importance to the sector are the Ezequiel Dias Foundation (FUNED), a research center focused in public health and linked to the state’s government, and the René Rachou Research Center (CPqRR/ Fiocruz Minas), responsible for the creation of new medicines, vaccines and diagnostic methods.

The concentration of teaching, research and professional formation institutions stands out in the state, with a total of 151 postgraduate programs

Note: CAPES (Coordenação de Aperfeiçoamento de Pessoal de Nível Superior) is the Brazilian institution responsible, among other things, for the evaluation of postgraduate programs

*

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life sciences

Why Minas Gerais

Laboratory Analysis:

FUNED is aligned with the Brazilian national health system (SUS), with the task of producing currently imported drugs. It takes part as well in partnerships with private companies, counting with a modern 2,500 square meters biotechnology plant.

Tests to measure the quality of water for human consumption, cosmetics, medicine, cleaning materials and ambient air Proficiency tests Analyses in biologic material for disease control Water and food monitoring Haemodialysis quality-monitoring services and several other services such as research, development and innovation in health, science and technology.

Source: funed.mg.gov.br 47


Economy

renewable energy

RENEWABLE ENERGY

CEMIG, the largest integrated company in the electrical energy sector in Brazil, has prepared a detailed study of the potential for renewable energy in the state. Solar incidence and radiation, geographical conditions and territorial extension make Minas Gerais a perfect place for solar energy generation.

MINAS GERAIS PROGRAM FOR RENEWABLE ENERGY Programa Mineiro de Energias Renovåveis Energias de Minas/Energy of Minas Pioneer in Brazil, this program aims at promoting both the production and consumption of renewable energy, bolstering the state’s position as a national reference center in clean energy. The programme covers: Various types of energy: solar, wind, biomass, biogas, and hydraulic Low rates for equipment purchasing Special tax regime for the generation of renewable energy Special financing line Capital and technology formation for the sector

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renewable energy

Why Minas Gerais

Solarimetric Atlas of Minas Gerais

ANNUAL AVERAGE OF DAILY SOLAR RADIATION

JANUÁRIA

Source: Cemig (2016).

JEQUITINHONHA

MONTES CLAROS

TRÊS MARIAS

GOVERNADOR VALADARES

UBERLÂNDIA BELO HORIZONTE

POUSO ALEGRE

JUIZ DE FORA

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Economy

information and communication technology

INFORMATION AND COMMUNICATION TECHNOLOGY Renowned as one of the best universities in the country, the Minas Gerais Federal University (UFMG) helps to provide qualified professionals in Belo Horizonte by means of its course in computer science. Another hub of technological development in the state is the city of Santa Rita do Sapucaí, where the National Telecommunications Institute (INATEL) offers undergraduate and graduate courses in engineering, telecommunications and information technology.

The state has more than 100 education institutions offering undergraduate courses in areas related to the ICT sector and: 8 Masters in computer sciences 3 PhD courses in computer sciences 21 incubators for technology-based companies connected to the Minas Gerais Innovation Network (Rede Mineira de Inovação – RMI) 126 companies undergoing incubation process

Source: Inovadatamg

312 graduated companies (that have already gone through the incubation process) 23 resident companies (formally linked to technological parks)

Source: Inovadatamg, INEP/CES (2017), CAPES/GEOCAPES (2017) 50


information and communication technology

Why Minas Gerais

HARDWARE

SOFTWARE

Minas Gerais is home to two Data Center companies:

Important IT companies are established in Minas Gerais, most of them located in the metropolitan area of Belo Horizonte:

Ativas with a 11,000 square metre built-up area following the latest international sustainability and energy efficiency standards Algar Tech, with two Data Centers in Uberlândia

Google has a Research and Development Center in Belo Horizonte, the only one of this its type in Latin America; SAP is strengthening its operations in the state and has already spotted considers the Triângulo Mineiro region as a strategic region; Microsoft has a branch in Belo Horizonte, aimed at consolidating and increasing its partnerships in the area. Other IT companies located in Minas Gerais are Avenue Code, Infosys, Sankhya e Totvs.

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Minas Gerais

52


Why Minas Gerais

53


Minas Gerais

54


export development

Why Minas Gerais

Minas Gerais is the second largest Brazilian exporter. In 2018 the state exported US$ 23.9 billion, an amount corresponding to 10% of total Brazilian exports.

Export development (US$ billion)

41.3

33.1 33.4 31.2

29.3 25.3

24.4 22 18.3 13.5

15.6

21.9

23.9

19.5

10 7.4

Source: MDIC/Comex Stat 55


Foreign Trade

main exported products

THE MAIN PRODUCTS EXPORTED IN 2018 WERE: ores and other mineral products, with a 30% share, followed by iron and steel, with 14%, and coffee, with 13% of the total exported Products

FOB Value (US$)

Share (%)

Ores and other mineral products

7,339,955,285

30.6

Iron and steel

3,382,351,933

14.1

Coffee

3,217,630,156

13.4

Soya beans, whether or not broken

1,693,739,901

7.1

Precious metals, precious and semi-precious stones, jewelry and imitation jewelry

1,338,905,633

5.6

Road vehicles and its parts and accessories

875,806,372

3.7

Meat and edible meat offal

798,572,716

3.3

Chemical wood pulp, soda or sulphate, semi-bleached or bleached, of nonconiferous wood

766,319,693

3.2

Sugars and sugar confectionery

751,096,687

3.1

Inorganic chemicals; organic and inorganic compounds of precious metals, of rare earth metals, of radio-active elements and of isotopes

647,352,525

2.7

Machinery, mechanical appliances and its parts

517,133,261

2.2

Other

2,637,388,688

11

Total

23,966,252,850

100 Source: MDIC/Comex Stat

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Why Minas Gerais

main imported products

MINAS GERAIS IMPORTED MORE THAN US$ 6 BILLION IN 2018. THE MAIN PRODUCTS WERE: road vehicles and its parts and accessories, with a 15% share, followed by machinery, mechanical appliances and its parts, with 13%, and electrical machinery and equipment and its parts, with 10% of the total imported Products

FOB Value (US$)

Share (%)

Road vehicles and its parts and accessories

1,403,458,330

15.5

Machinery, mechanical appliances and its parts

1,187,846,051

13.1

Electrical machinery and equipment and its parts

935,628,325

10.3

Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes

830,376,940

9.2

Fertilizers

668,907,410

7.4

Organic chemicals

575,366,836

6.3

Optical, photographic, cinematographic, measuring, checking, medical or surgical instruments and apparatus and its parts and accessories

347,547,686

3.8

Plastics and its articles

309,005,453

3.4

Ores and its concentrates

279,148,171

3.1

Iron or steel articles

255,354,310

2.8

Other

2,280,054,305

25.1

Total

9,072,693,817

100 Source: MDIC/Comex Stat 57


Foreign Trade

export markets | 2018

The major amount of Minas Gerais’exports is sent to Asia, with China outstanding as the greatest market.

Countries – export destinations (2018) FOB Value (US$) Share (%) China

6,931,166,100

28.9

United States of America

1,768,834,516

7.4

Netherlands (Holland)

1,461,860,367

6.1

Argentina

1,393,157,328

5.8

Japan

1,013,394,573

4.2

5.29% 6.71%

4.53%

4.34% 6.78%

Asia (excluding middle esat and ASEAN) European Union (EU) North America

10.55%

38.77%

Mercosur Middle East Association os Southeast Asian Nations (ASEAN)

23.02%

Europe (excluding EU) Other Source: MDIC/Comex Stat

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import origins | 2018

Why Minas Gerais

The major amount of Minas Gerais imports come from Asia and the European Union. China, the United States, Argentine, Italy and Germany stand out as the greatest exporters to the state. Countries – import origins (2018)

FOB Value (US$) Share (%)

China

1,615,138,168

17.8

United States of America

1,363,952,641

15

Argentina

1,341,492,066

14.8

Germany

479,236,844

5.3

Italy

414,081,853

4.6

6.00% 6.83%

A significant bilateral trade relation between Minas Gerais and China, the United States and Argentina is noticed, once all these countries appear with the highest share of both export markets and import origins.

8.30% Asia (excluding middle esat and ASEAN)

24.79%

North America European Union (EU) Mercosur

15.78%

South America (excluding Mercosur) Europe (excluding EU)

17.80%

20.50%

Other

Source: MDIC/Comex Stat 59


Minas Gerais

60


Why Minas Gerais

61


Innovation

62

innovation

62


innovation

Why Minas Gerais

Great Brazilian Information technology Cluster

SAN PEDRO VALLEY Recognized as the best Brazilian start-up cluster , San Pedro Valley is *

454 Startups

59

Digital Agencies

21

Co-working spaces

6

Accelerators

located in Belo Horizonte, the capital

6

of Minas Gerais.

Venture capital firms

5

Incubators

2

Hackerspaces Source: Hub Minas Digital, www.sanpedrovalley.org 63


Innovation

innovation

Startups and Entrepreneurship Ecosystem Development SEED is an institution that promotes the development of the entrepreneurship and innovation system in Minas Gerais. The chief project is a startups acceleration program for entrepreneurs from all over the world who want to develop their business in the state. SEED is the only Brazilian institution of its type maintained with public resources, working to enhance the interactions, networks and knowledge and skills exchanges between supported entrepreneurs and the local, national and global system. Participants in the program go through six months of intense activities, which help to strengthen their entrepreneurial characteristics and their projects. Each round selects 40 startups, which indicate two to three entrepreneurs to participate in the activities, receiving seed capital of up to R$ 80 thousand. Coordinated by the Secretariat for Economic Development, Science, Technology and Higher Education – SEDECTES, SEED is part of Minas Digital, a 64


innovation

Why Minas Gerais

range of governmental initiatives directed to boosting the development of innovative businesses and strengthening the entrepreneurial culture in Minas Gerais. SEED’s goal is to transform Minas Gerais into the largest center of entrepreneurship and innovation in Latin America.

Minas Gerais Innovation System (Simi) The Minas Gerais’ Innovation System was established with the purpose of promoting the convergence of initiatives from government, business and research institutions in order to favor the innovation development in the state. Open to all society, the SIMI portal is a strategic tool that brings together the most important information concerning entrepreneurship, science, technology and innovation. 65


Innovation

innovation

There are 4 Technology and Science Parks in Minas Gerais, in the following cities: Belo Horizonte, Itajubá, Uberaba e Viçosa Technological Parks

Two others are under construction, in Juiz de Fora and Lavras All of them work in close collaboration within the innovation system

Minas Gerais has 21 incubators in several regions of the state. All of them are linked to the Minas Gerais Innovation Network (Rede Mineira de Inovação - RMI)

Incubators and accelerators

Technology-based companies operating in Minas Gerais receive support from accelerators New investors receive support through the whole process of investment, from its initial phase until the full operation of their businesses

Minas Gerais’ startup community has been recognized for its innovative and successful environment

Startup Community 66

San Pedro Valley is the best start-up community in Brazil, clustering more than 400 technology-based companies, as well as accelerators, incubators and co-working spaces Startups from any part of the world are welcome in Belo Horizonte


innovation

Why Minas Gerais

Companies with high technological content chose Minas Gerais for their R&D centers: Embraer, CSEM Brasil and Fiat are companies which develop new products in the state. And Google has a R&D center in Belo Horizonte, the single one of its type in Latin America

R&D Centers

There are also public research centers in Minas Gerais, such as Fiocruz (Oswaldo Cruz Foundation) and Funed (Ezequiel Dias Foundation) There are 10 INCTs (National Institute of Science and Technology), proving the state’s great capacity in R&D The state government encourages innovation and stimulates creativity and entrepreneurship through programs such as Minas Digital, which supports the digital and creative economy and innovation

Government Programs

Innovative projects may also receive support from CODEMIG - Economic Development Company of Minas Gerais Minas Gerais offers financing lines created specifically to foster innovation. Inovacred (BDMG/FINEP) – aims at supporting the development of new processes and products by companies with gross operational income up to R$ 90 million/year

Financing

Inovacred Expresso (BDMG/FINEP) – designed to finance innovative projects developed by companies with gross operational income up to R$ 16 million/year BDMG also offers equity funds to innovative solutions with high potential for growth and social impact and Codemig offers equity and credit rights funds to support high-tech companies 67


Innovation

funding

FOUNDATION FOR RESEARCH OF THE STATE OF MINAS GERAIS FAPEMIG finances scientific, technological and innovation research projects in several areas and promotes human resources training programs for science, technology and innovation; Existing innovation financing lines: Pró-Inovação: A partnership with BDMG, this line finances innovative products, processes and services developed by companies established in Minas Gerais Proptec: also a partnership between FAPEMIG and BDMG, this line is reserved to companies located in the state’s technological parks and is designed to support implantation, expansion and modernization investment projects In 2017, FAPEMIG maintained 3,479 projects in execution, corresponding to more than R$ 686 million in investments. The resources executed by the institution in the same year amount to R$ 294 million, of which almost 7% was applied directly in private companies. Most part of them, 67%, was invested in public federal research institutions located in Minas Gerais.

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funding

Why Minas Gerais

Distribution of FAPEMIG’s financial execution by investment type (%)

Investment

*

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Induced Demand Projects*

31.5

31.4

17

21.9

29.3

27.3

27.5

27.2

18.6

17.08

21.34

9.6

Universal Demand Projects

27.2

25.3

24.9

25.3

17

19.5

17.6

15.6

14

10.97

11.61

30.07

Scholarship and HR training courses

20.7

17.8

20.8

19.5

17.5

17.8

17.6

18

28.1

17.54

21.93

23.34

Academic events

3.9

2.7

2.4

2

2.2

2

2.5

2.5

3.3

2.48

2.77

2.06

Special, internal and structural projects

9.7

16.2

30.4

26.3

29

28.6

30

31.8

31.1

39.66

34.86

25.22

Other Activities

1.9

1.5

1.2

1

1

1

1

0.6

1.1

8.97

0.89

0.75

Administrative Costs

5.1

5.1

3.3

4

4

3.8

3.8

4.3

3.8

3.3

6.6

8.99

Projects in areas considered strategic for the development of the state.

Source: FAPEMIG 69


Minas Gerais

70


Why Minas Gerais

l i v i n g , l a b o u r a n d b u i l d ing costs

71


Social and Education

72

education


universities

Why Minas Gerais

Minas Gerais excels in quality education in Brazil. There are 14 public universities in the state and 3 of the 10 best public universities in the country are in Minas Gerais. Undergraduate courses offered by these universities, such as of Agronomy, Biological Sciences, Design, Information Systems, Pharmacy and Engineering occupy lead positions in the national education rankings. In addition, the state hosts one of the best business schools in Latin America, Fundação Dom Cabral – FDC, recognized in 2017, by the British journal Financial Times, as the 12th best in the world. 2nd place in education according to the States Competitiveness Ranking of 2018 Largest number of federal universities in the country; Internationally recognized business schools are stablished in Minas Gerais: Fundação Dom Cabral (FDC), Ibmec and IBS (in partnership with Fundação Getúlio Vargas – FGV).

MINA S GERAIS FEDERAL UNIVERSITY | UFMG 11th position in the ranking of Latin American Universities (QS Quacquarelli Symonds University Rankings 2018)

3rd position in the national ranking (Times Higher Education 2019) Photo: UFV - Viçosa 73


Social and Education

undergraduate courses that stand out in the national ranking

Agronomy UFV is ranked 3rd

Food Engineering UFV is ranked 6th and UFVJM is ranked 8th

Pharmacy UFJF is ranked 2nd

Automation and Control Engineering UFU is ranked 3rd and UFMG is ranked 10th

Biological Sciences UFOP is ranked 2nd, UFV is ranked 5th and UFLA is ranked 7th

Computer Science UFJF is ranked 2nd and UFMG is ranked 10th

Design UFJF is ranked 2nd

Electrical Engineering UFV is ranked 10th

Environmental Engineering UNIFAL is ranked 4th, UFLA is ranked 6th and UFMG is ranked 9th

Mechanical Engineering IFMG is ranked 10th

Civil Engineering UFV is ranked 9th

Chemical Engineering UFMG is ranked 7th and UNIFEI is ranked 10th Source: INEP/CPC (considering public universities only)�

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undergraduate student profile - engineering

Why Minas Gerais

There are over 669 thousand students enrolled in undergrad courses in Minas Gerais. Over 147 thousand are enrolled in engineering courses, corresponding to 22% of the total of graduating students Around 13% are in courses related to business areas such as administration and accounting.

NUMBER OF STUDENTS IN SOME ENGINEERING COURSES Civil | 45,142

Computer | 3,592

Production | 22,600

Agronomic | 2,839

Mechanical | 45,142

Mining | 2,229

Electrical | 15,492

Food | 2,139

Chemical | 6,719

Source: INEP/CES 2017 75


Social and Education

undergraduate student profile - life sciences

Education and training for biotechnology and life sciences professionals constitute an important element of Minas Gerais’ attractiveness. Undergraduate and graduate courses ensure the offer of qualified personnel, absorbed by the companies operating in the state, in other locations of the country and around the world. Anbiotec and Biominas are two institutions of national expression that were born in the state, aimed at developing research, innovation and business projects in the area of biotechnology and life sciences.

Medical School | 45,142 Dentistry | 15,867 Pharmacy | 12,185 Biological Sciences | 9,875 Biomedicine | 5,825

Source: INEP/CES 2017 76

By means of its professional education public centers, present in all of its regions, Minas Gerais also offers a large supply of technicians: With campi in many cities of the state, the Federal Center for Technological Education (CEFET-MG) offers technological and professional education courses, as well as undergraduate and specialization courses. The Federal Institute of Education, Science and Technology of Minas Gerais (IFMG) is also a public teaching institution which offers mainly technical and


quality of life

higher education courses, with an administrative branch in Belo Horizonte and campi in 17 other cities. The institute offers over 40 technical and 30 undergraduate courses, besides postgraduate and even basic education courses.

Minas Gerais counts also with many units of the National Service of Industrial Apprenticeship – SENAI, distributed in numerous cities and regions. SENAI offers a variety of industrial apprenticeship and technical courses, besides qualification and professional improvement programs.

Why Minas Gerais

Minas Gerais is a unique state, combining culture, history, tradition, gastronomy and nature. Sustainability Minas Gerais stands out in sustainability. The state capital, Belo Horizonte, was the national winner, for the 4th year in a row, of the WWF’s City Challenge Culture Minas Gerais is well known for being a guardian of the Brazilian historical and cultural heritage, particularly visible in its historical cities. The state is home to about 60% of the country’s historical heritage. Inhotim was chosen as one of the 20 best museums in the world by Trip Advisor. Recently, the Pampulha Architectural Ensemble was elected a World Heritage Site by Unesco.

77


Social and Education

quality of life

LIBERTY SQUARE CULTURAL CIRCUIT The Liberty Square Cultural Circuit is the largest integrated network of culture sites in Brazil. The project was developed by the Government of Minas Gerais, through the State Secretariat for Culture, in partnership with private companies. Old public buildings were transformed into interactive spaces with the aim of disclosing a diversity of historical, artistic and thematic collections, thus making Minas Gerais’ cultural heritage accessible. The circuit also counts with a planetarium, workshop and learning spaces, libraries, coffee shops, restaurants and stores.

Top 10 Human Capital and Lifestyle 5th among major states and 6th among all the states 78 78

Minas Gerais still showcases: Cost Effectiveness

High HDI: 0,731

7th among major states

Mild weather

FDI Strategy

International schools

2 in Editor’s nd

Choice Award


living, labour and building costs

Why Minas Gerais

2019 INDUSTRIAL WAREHOUSES’ 

AVERAGE BUILDING COSTS(R$/M2) MG

698.92

PR

RJ

SP

The Base Unit Cost (CUB) measures construction costs by square meters. It is calculated according to rules set up by the Brazilian Technical Standards Association (ABNT) and is a reference for the comparison of different types of construction in Brazilian regions.

756.51

+8.24%

772,21

776.58

+10.5%

+11.11%

MINAS GERAIS HAS LOWER LIVING, LABOUR AND BUILDING COSTS IN COMPARISON WITH OTHER STATES IN THE SOUTH AND SOUTHEAST REGIONS OF BRAZIL

Source: Based on data available at www.cub.org.br 79


Social and Education

living, labour and building costs

2018 RESIDENTIAL PROPERTIES’ 

AVERAGE SALES PRICE (R$/m2)

Belo Horizonte -MG

Florianópolis - SC

São Paulo - SP

Rio de Janeiro - RJ

80 80

6,427

6,894

+7.27%

8,829

9,402

+37.37%

+46.29%


living, labour and building costs

Why Minas Gerais

2018 RESIDENTIAL PROPERTIES’ 

AVERAGE RENTAL PRICE (R$/m2)

Belo Horizonte -MG

Florianópolis - SC

Rio de Janeiro - RJ

São Paulo - SP

21.12

23.16

+9.66%

30.21

+43.04%

37.02

+75.29%

Source: FIPZAP (2018) 81 81


Social and Education

82

living, labour and building costs


living, labour and building costs

Why Minas Gerais

2017 SELECTED FUNCTIONS’ 

AVERAGE SALARY (R$) Function

Belo Horizonte

Curitiba

Porto Alegre

Rio de Janeiro

Campinas

SĂŁo Paulo

Financial and Administrative Directors

16,761.08

14,654.99

18,083.83

22,915.00

21,081.20

19,406.97

Administrative and Financial Managers

5,432.62

6,991.19

6,680.72

9,989,63

7,166.74

11,110.92

Human Resources Manager

5,764.97

7,842.89

6,654.23

9,212.68

8,763.70

10,842.45

Marketing Manager

5,095.43

6,443.37

6,611.11

7,986.91

8,330.15

10,575.47

IT Manager

9,532.43

10,013.93

10,271.91

13,110.56

11,801.56

14,259.84

Professionals of Economic and Financial Administration

7,559.58

5,336.12

8,590.87

8,819.32

4,271.83

6,943.19

Computer Specialists

6,029.71

6,056.57

7,503.07

8,417.35

8,394.64

7,945.07

Business Administrators

6,366.58

6,981.40

6,983.51

9,499.72

6,479.73

7,285.94

Administration Technicians

4,742.41

4,101.32

4,978.98

7,501.30

5,162.22

5,862.54

Accounting Technicians

3,530.72

4,634.27

4,422.80

6,886.72

5,691.32

5,846,86 83


Minas Gerais

84


Why Minas Gerais

87 88 92 94

85


Business

86


public policy coordination group for sustainable economic development - GCPPDES

Minas Gerais has established the Public Policy Coordination Group for Sustainable Economic Development - GCPPDES. The group’s objective is to propose, articulate, integrate and promote policies and actions concerning industry, commerce,

Why Minas Gerais

services, environment, tourism, innovation and water resources. GCPPDES evaluates, according to a set of criteria, if investment projects are eligible for priority implementation.

GCPPDES MEMBERS Minas Gerais Development Bank (BDMG) Minas Gerais Energy Company (Cemig) Development Company of Minas Gerais Minas Gerais Investment and Trade Promotion Agency

State General Attorney (AGE) State Secretariat of Finance (SEF) State Secretariat for Agriculture, Livestock and Food Supply (SEAPA) State Secretariat for Economic Development, Science, Technology and Higher Education (SEDECTES) State Secretariat for Environment and Sustainable Development (SEMAD) State Secretary of Tourism (SETUR) 87


Business

Institutions participating in the Group GCPPDES

Minas Gerais Development Bank (BDMG) BDMG is one of the State’s strategic agents in promoting sustainable socioeconomic development.

BDMG has specific funding lines for:

The bank’s work is focused on four pillars: regional development and reduction of inequalities; innovation, aiming at diversifying Minas Gerais’ productive chain and increasing the quantity and quality of job generation; support to the agribusiness, a sector of great importance for Minas Gerais’ GDP; and sustainability, comprising environmental preservation, economic development and social inclusion.

Medium and large companies

BDMG is also the official designer of public concessions operations (in regular and PPP models), providing all methodological, legal and economicfinancial support to the city halls and the public consortia of municipalities. 88

Innovation projects Micro and small business Sustainable projects Agribusiness Financeable items for companies: Implementation, expansion or modernizing Working Capital Purchase of machinery and equipment Exportation and importation R&D and innovation in products, processes and services


Institutions participating in the Group GCPPDES

Why Minas Gerais

Minas Gerais Energy Company (CEMIG) Cemig is one of the most solid and important groups in the Brazilian electricity sector, holding shares in numerous companies (more than 173), consortiums and equity funds. Publicly-held company controlled by the Government of the State of Minas Gerais, Cemig has 140,000 shareholders in 38 countries and its shares are traded on the Stock Exchanges of SĂŁo Paulo, New York and Madrid. Today, the company is a reference in the global economy, recognized for its sustainable performance. For 19 consecutive years, it is part of the Dow Jones Sustainability World Index (DJSI World). The Cemig Group is also recognized for its size and technical competence, being considered the largest integrated company in the Brazilian electric power sector. In Minas Gerais, it accounts for 96% of the

concession area, with 8.5 million consumers in 774 municipalities. It is also the largest supplier of energy to free customers in the country, with 25% of the market, and one of the largest groups in the energy generation segment, operating 83 power plants (78 hydroelectric, 1 thermoelectric, 1 photovoltaic and 3 wind farms) with installed capacity of 5.5 Gigawatts. Cemig’s activities embrace 22 Brazilian states and the Federal District. The company has also become the controlling shareholder of Light, increasing its participation in energy distribution in Rio de Janeiro’s capital and other cities. Cemig also holds investments in the segment of natural gas (Gasmig), renewable energy (Renova) and energy efficiency (Efficientia).

89


Business

Institutions participating in the Group GCPPDES

Development Company of Minas Gerais (CODEMIG)

Economic Development Company Minas Gerais – CODEMIG is a public company controlled by the State of Minas Gerais. CODEMIG was created in 2003 to play a complementary role in the State Government’s activities, leveraging large-scale investments and advancing the economic development of Minas Gerais. The company’s activities are based in three cornerstones:

90

MINING ENERGY AND INFRASTRUCTURE INDUSTRY

The first refers to the Mining, Energy and Infrastructure Industry, in which CODEMIG seeks new business opportunities, valuing the state’s mineral potential and acting in the generation of thermoelectric and photovoltaic energy.


Institutions participating in the Group GCPPDES

CREATIVE INDUSTRY OF MINAS GERAIS The second one concerns the creative industry, fostered by CODEMIG through subsidies to the productive chains of audiovisual, gastronomy, fashion, music, tourism, new media, design, and so forth.

Why Minas Gerais

HIGH TECHNOLOGY INDUSTRY OF MINAS GERAIS And the third refers to the High Technology Industry, especially in the strategic materials, aerospace, biotechnology, semiconductor and information technology segments. The objective here is to establish strategic partnerships and new business models, pursuing new revenues and aggregation of value for the company.

91


Business

M i n a s G e r a i s I n v e s t m e n t a n d Tr a d e P r o m o t i o n A g e n c y

Minas Gerais Investment and Trade Promotion Agency (INDI)

Our objective is to promote the execution of development policies which contribute to investment attraction, reduction of regional inequalities and job creation. For 50 years, INDI has been one of the main players in the economic development of Minas Gerais.

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M A I N TA I N E RS Minas Gerais boasts an experienced and effective investor support system.

AND INDI IS THE MAIN SPEAKER


Why Minas Gerais

INVESTMENT PROMOTION For half a century, the– INDI has been assisting entrepreneurs who intend to invest in the state. The Agency works on the prospection, induction and attraction of investments aiming at the sustainable development of the state, working as well for the retention and expansion of investment projects already installed. INDI offers complete monitoring at all stages of the investment process, without any financial burden to potential investors. INDI also operates internationally, organizing missions and receptions of foreign delegations. FOREIGN TRADE INDI undertakes export promotion activities to support small and medium enterprises in Minas Gerais. Organizing trade missions and hosted buyer projects, offering training activities and issuing releases and studies (as the Minas Gerais Foreign Trade Outlook and the Monthly Trade Balance) are the most important ones. INTELLIGENCE INDI provides socio-economic and demographic information concerning the cities and regions of the state. The Agency maintains the DataViva, an open platform for socio-economic data research, through which it develops analyses used to support economic development policies. 93


Business

some projects in Minas Gerais

3000

Over companies have received INDI´s assistance in the agency´s 50 years of operation. These companies have seen their businessess grow together with the economy of the state.

Food: Aryzta, Danone, Ferrero, Kopenhagen, Unilever. Aeroespace: Embraer, Gol, Helibrás. Automotive: Fiat, Iveco, Mercedes-Benz. Beverage: Ambev, Coca-cola, Estrella Galicia, Imperial, Petrópolis. Biotechnology: Biomm, Eurofarma, Novo Nordisk, St. Jude Medical. Electronics: GE, Panasonic, Philips, Toshiba. Mining: Anglo Gold Ashanti, Anglo American, Vale. Steel Industry: ArcelorMittal, Gerdau, Usiminas. Equipments and Transport: GE Transportation, Progress Rail (Catterpillar), XCMG. Packaging: Verallia (Saint-Gobain Group) Pulp and Paper: LD Celulose. 94 94


INDICS@ INDI. MG. GOV. BR

+55 31 3360 6800

/ INDI. MINASGERAIS

Profile for Fábio Vieira

Why Minas Gerais  

Guide on potentialities, economy and natural attributes and infrastructure of Minas Gerais.

Why Minas Gerais  

Guide on potentialities, economy and natural attributes and infrastructure of Minas Gerais.

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