The Brazilian States: Espirito Santo

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Hello everyone, and welcome once again to Denmark Brazil.com.

Today we finalize the Southeast region by bringing shairng with you this last artcle on the state of Espirito Santo. Just as a quick recall, over the past few days I have presented the Southeastern Region of Brazil.

The first series of posts from “The Brazilian States” series, I’ve presented all the Southern Region of Brazil. The South of Brazil comprises 3 states: Rio Grande do Sul, Santa Catarina and Paraná.

After the South, I started presenting the Southeastern region. The Southeast comprises 4 states: São Paulo, Rio de Janeiro, Minas Gerais and Espirito Santo. Today I’l be presenting the state of Espirito Santo, the last state part of the southeast region.Next week I’ll start presenting the Northeast of Brazil.

The State of Espirito Santo:

Espirito Santo is one of the 27 states of Brazil.Espirito Santo is located in the southeast region of Brazil. Espirito Santo makes boarders with the Atlantic Ocean to East, with the state of Bahia to Northweast with Bahia, to Minas Gerais to West and with Rio de Janeiro to South. Espirito Santo’s ocuppies an area of 46.095.583 km2, and it comprises 78 municipalities and a population of 3.510 .390 inhabitants according to the latest cesnsus from 2010. Espirito Santo is the 4th smallest state of Brazil only behind, it’s capital is called Vitória.

In Vitoria, the capital of Espirito Santo it is located one of the most important and efficient complex of ports of Latin America. Vitoria groups 6 ports that functions as destination point to roughly 25% of the total amount of goods in Brazil. In Espirito Santo there are especialized ports capable of handling various sorts of loads ranging from materials such as brute iron ore ,steel, grains, pulp&paper,automobiles,etc.

Economy

Foreign Trade**

Over half of Espirito Santo’s GDP is provenient from the foreing trade. Espirito Santos main exports are commodities such as steel, iron ore,coffee, bleached eucalyptus pulp in additition to other goods such as telecommunications appliances and automobiles. Espirito Santo is the 8th largest importer/exporter state of Brazil. It is the 6th state that generates the highest trade surplus, and Espirito Santo’s exports contributed for 28,6% of the GDP of the state in 2011. The main products exported by Espirito Santo by aggregated factor are:

 

Espirito Santo’s main Exports Destinations are:

 

Agriculture

Espirito Santos agriculture is highly driven by the production of coffee. In fact, Espirito Santo is the second major coffee producer, staying behind Minas Gerais.Furthermore Espirito Santo is also the main papaya exporter of Brazil and is a relevant producer of fruits such as strawberries, pineapples,passion fruits,etc.

Pulp

The state is the world leader in production of bleached pulp from the eucalyptus The pulp produced in Espirito Santo is exported to over 40 countries. Additionally, the bleached pulp accounts for 30% of the global offer of the product, which is destinated for the manufacture of toilet paper, witting paper, and several other sorts of paper for very uses.

The largest company present in the state is called Fibria. Fibria was born from the merger of the two massive companies, Aracruz and Votarantim. and is located in the municipality of Aracruz.

Automotive Industry

The Automotive industry is the most recent industry in the state. Espirito Santo has just received Marco Polo, one of the largest bus manufacturers of the globe. Marco Polo is installing a business unit in the municipality of São Matheus in the north of the state.

Metalmechanic Industry

The metalmechanic sector is the strongest sector of Espirito Santo’s economy. It moves more than 8 Billion BRL/year, what represents 20% of the GDP of the state. Furthermore the sector employs 30.000 people and generate around 120.000 indirect jobs for metal transformation and production of intermediary goods.

Clothing & Fashion

The clothing and fashion industry is representative and comprises some 1300 companies, including micro,small and medium sized firms. The most important and creative region for this industry is located in Colatina and Vitoria, the capital of the state.

Furniture

The furniture industry is suprisingly increasing in Espirito Santo. Its in the municipality of Linhares where all furniture industries are located. An interesting fact is that Linhares is the 2nd most populous city of Espirito Santo, and is the one that is growing more both economically and in population. The sector has seen an average growth of 6% per year due to the investments destinated to some industries that are also present in the municipality such as the oil and gas and food and beverages industries.

Mining

Espirito Santo is the largest exporter of iron ore pellets. Companies such as Companhia Vale do Rio Doce and Samarco and the major steel producer, Arcelor Mittal  are installed in the state.

Arcelor Mittal has two production sites in the state in the Vitória region. One unit produces steel plates and rolled coils and produces up to 7,5 million ton/year and the other unit produces long and flat steel products used in the mechanic construction industry

Oil

Over the past few years the state of Espirito Santo has gained much notoriety due the productions of oil and gas that has been happening in there. Espirito Santo is the second largest oil province in Brazil and it´s production accounts for 15% of the total volume of what is produced in Brazil.

Recently the Brazilian state owned Petrobras has just closed a deal of 11 Billion BRL with Jurong. In 2013 the state also realized the 11th tender for oil fields on and offshore. 12 blocks were offered.

What you won’t find at the Economist Intelligence Unit 😀

Did you know that Espirito Santo has one of the largest port complex in Latin America? Espirito Santo’s port accounts for 20% of the Brazilian trade commerce balance. The structure of Espirito Santo’s ports allows the movement of several types of cargos. The foreign trade is probably one of the most important activities for the state.

Main ports of Espirito Santo in Operation

Vitória

Tubarão

Praia Mole

Porto de Urubo, from Samarco Mineracao

Portocel from Fibria

Terminal de Vila Velha

Terminal Norte Capixaba

Companhia Portuária de Vila Velha

***BONUS INFORMATION

Did you know that in Espirito Santo there is a new port being built and it is being built in partnership with the Roterdan Port ( know-how) ?? This port will attend sectors such as Automotive, agriculture, mining, cargo and containers in general,among others and it will be built in the municipality of Presidente Kennedy, right in the south of the state. Really nice, more jobs, and opportunities.

Granite and Marble

Espirito Santo possess one of the largest reserves of granite and marble of Brazil,with a vast variety of colours. An industrial park of 3500 businesses act ranging from the extraction and the production of ornamental rocks, to the exportation of these rocks.

The regions that should be highlighted for this industry are Cachoeiro de Itapemerim in the south and Nova Venécia and Barra the São Francisco, both in the North and Northweast respectively.

By the end of 2013 the ammount of ornamental rocks exported had grown almost 20% over the period of 2012 and the total ammount exported was roughly 200 Million BRL

**Bonus Information**

The Incentives to Investment 🙂

In Espirito Santo, local firms can find investment incentives, conceived by the local government.The types of incentives to investment that you can find in Espirito Santo are the following:

Fundepar-ES,which is an investment fund and participation in Espirito Santo that support strategic enterprises or of high technological intensity, that will bring ultimately a contribution for the development of the state.

LEI DA INOVACAO-( Innovation Law)- Offers mechanisms to facilitate the cooperation of PPP’s for the creation of a fund that will finance the development of new products and processes or services that are know-how intensive

INVEST-ES- The program seeks to contribute for the expansion, modernization and diversification of the local productive sectors, by stimulating investments, technological renovation and increase the competitiveness of the state.

Sudene Tax and federal incentives for new investments in 28 municipalities of the state.

Did I miss out on something, please let me know.

I hope you have enjoyed this last article from “The Brazilian States “Southeast”Series

Mange Tak

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Carlos Monteiro is a Brazilian citizen, graduated in Business Administration by the Catholic University of São Paulo. He lives in Odense, Denmark with his Danish Wife, Cathrine, and their half Danish /Brazilian daughter Ines Marie. You are very welcome to be in contact him at any time.

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