São Paulo – With growth of 4.1% in Gross Domestic Product (GDP), the state of Paraná easily exceeded the global average in 2011, when growth was estimated at 2.9%, according to Central Bank of Brazil forecasts. The performance of the state of Paraná was the best in the South. More? The state’s industrial GDP grew 5.2%, against a 0.7% in the country, 2.4% in Rio Grande do Sul and -4.4% in Santa Catarina.
It was the third highest growth in the country, only after the states of Espírito Santo (7%) and Goiás (5.4%). The good performance is due to several factors, but was boosted by implementation of the Paraná Competitivo (Competitive Paraná) program, which offered fiscal incentives to companies interested in setting up structures in the state. With this, over the last year, investment in the state has reached 9 billion reals (US$ 5 billion), with another 15 billion reals (US$ 8.3 billion).
“Paraná is the area of Brazil that should grow most in coming years,” said the state’s Finance secretary, Luiz Claudio Hauly. According to him, Paraná Competitivo is an important factor to understand the current phase of development, but it is also necessary to consider other points. “We have qualified labour, with over 300,000 college students, good roads and abundant water and energy,” said Hauly. “And that is not to mention that we are close to Argentina, a great importer of Brazilian products, and to São Paulo, the main economic hub in the country.”
Paraná Competitivo includes the payment in instalments of the value added state tax (ICMS) for companies participating, which may have up to eight years to honour their dues. According to Hauly, companies in all areas may participate, except for those in fuel, electricity and telecommunications.
In the ranking of those that announced the greatest investment in the program are corporations like Renault, with 1.5 billion reals (US$ 835 million), Sumitomo Rubber (R$ 560 million – US$ 312 million), Cargill (R$ 350 million – US$ 195 million), Supremo Cimento (R$ 340 million – US$ 189 million) and Paccar/DAF (R$ 330 million – US$ 184 million). According to the Paraná state government, the Renault investment was the greatest investment made by a private company in one single Brazilian state in 2011.
In three turns
The vice-president at Renault, Alain Tissier, stated that the carmaker has always had good reasons to bet on Paraná. “To invest, it is necessary for there to be a decent level of development, with qualified labour, energy and good logistics,” he said. “We find this in the state, so much so, that we decided to continue investing here.”
The R$ 1.5 billion in investment announced within the Paraná Competitivo will be made up to 2015. With this, the carmaker plans to expand its production by 100,000 vehicles a year, reaching capacity of 383,000 units a year.
For such, a new engineering centre, a training centre and an area turned to logistics should be established. With this, 2,000 work posts will be opened by the company. “We already work in three shifts and on Saturdays every 15 days,” explained Tissier. “With all these actions, it is as if we were building a new factory alongside the structure we already have in São José dos Pinhais.”
The Ayrton Senna Complex includes the brand’s three production units in Brazil: passenger vehicles, utilitarian vehicles and engines. The company currently employs over 6,000 people directly.
In terms of employment, in fact, the figures in Paraná are also good. According to the CEO of the Paraná State Institute of Economic Development and General Coordination (Ipardes), Gilmar Mendes Lourenço, the state broke records in the generation of official work posts in 2011, with growth of 6.6% up to November. In all, there were almost 160,000 posts, of which over 60% were outside the Metropolitan Region of Curitiba (RMC). “The RMC presented the lowest unemployment rate among all cities in the country, ending the year with 3.8%, against a national average of 6.1%,” said Lourenço.
When faced with such agitation, the target is for the state to answer to 7% of the GDP of Brazil in six or eight years, occupying the fourth position in the ranking, after São Paulo, Minas Gerais and Rio de Janeiro. “Today, we represent 6% of the country’s GDP, a percentage that was 6.4% in 2003 and 6.8% in the 1980s,” said Lourenço.
Arabs are welcome
Exports are Paraná state allies to reach this growth plan. In 2011, the state sold to the world a total of US$ 17 billion, a record value. According to figures disclosed by the Secretariat of Industry, Trade and Mercosur Affairs, the products most sold abroad were soy, sugarcane and chicken.
Among buyers, the Arabs are targeted by Paraná. And they are prominent as promising partners. Within this group, Egypt was the one that bought most from the state: US$ 91 million from January to June last year, followed by the United Arab Emirates, with US$ 88 million, Algeria (US$ 60.1 million) and Morocco (US$ 33.4 million). The greatest expansion was in exchange with Algeria, to which the state of Paraná sold 216.8% more than in the same period in 2010.
Pleased with these possibilities, the state Finance secretariat invites investors from the Middle East to look at his land. “We offer good infrastructure and legal safety for investment,” said Hauly. “That is not to mention that we have a foot in the Arab world: I myself am the son of Lebanese parents.” Hauly says that the state of Paraná has its arms open to receive missions from the region. “Or to organise delegations there. They only need to contact us at the secretariat,” he explained. However it may be, many good results may be presented to all those interested, whatever their origin.
*Translated by Mark Ament
