Minas Gerais your trade partner in Brazil

Minas Gerais State Government Economic Development Secretariat

Exportaminas Center

Territory of continental dimensions Fifth largest country in the world 193 million inhabitants (2010) GDP approximately USD 1.31 trillion (2007) GDP nearly USD 1.61 trillion (2008 ) GDP roughly USD 1.48 trillion (2009 )

Source: Wikipedia, based on IMF data. 2010

BRAZIL

Mercosul – Chile Axe

Area: 3.1 million square kilometers

Population: 126 million inhabitants GDP: USD 469.7 billion Source: IIRSA, May 2010.

20 million (2010) Belo Horizonte – 2.4 million (2010) Greater Metropolitan area – 4.9 million GDP: US$ 46.8 billion (2003) US$ 138 billion (2010) Source - Fundação João Pinheiro

7.5% of Brazil’s GDP in 2010 GDP growth in Minas Gerais: 2006: + 3,9% 2007: + 5,6% 2008: + 5,2% 2009: - 3,1% 2010: + 10,9% Source: IBGE, MDIC/SECEX

Minas Gerais

Brazil

France

Sweden

Spain

South America

* Belo Horizonte – State Capital

Belo Horizonte

Population: Capital: Economy:

Minas Gerais main figures

2nd most important in:

• exports

• agribusiness

• industrial production

5th largest importer

Source: Ministry of Development, Industry and Trade – MDIC - August 2009

Minas Gerais is among the most developed states in Brazil

Belo Horizonte – A Multimodal HUB in Brazil

1000 Km 500 Km

Minas Gerais compass Brazil’s largest highway and railroad networks

The largest road system in Brazil, which facilitates the integration of urban centers in the country and Mercosul to major ports.

The State’s 5.329Km railroad network is privately operated and is the largest in the country.

“Green Line” – the highway connecting the International Airport to downtown Belo Horizonte

Centro-Atlântica (FCA) Railroad

Source: Presentation SEDE 2007

Transportation Network

Belo Horizonte International Airport

The first industrial airport in Brazil, operating in a tax free area similar to a FREE TRADE ZONE SYSTEM.

One of the finest and best equiped airports in Latin America, designed to host local and foreign industries.

Source: INDI 2010

A World Class International Airport

Source: SEDE

Belo Horizonte International Airport

International flights operated by: TAP (Portugal) COPA (Panamá) TAM (Brazil) GOL (Brazil) AMERICAN AIRLINES (USA) TAM (PARIS) PLUNA (Montevideo)

ABSA Cargo (Miami)

Belo Horizonte Existent

Under development

Planned

Initial phase

Detroit

Denver

Guangzhou

Pequin Seoul

Hong Kong

Kuala Lumpur

Dubai

Frankfurt Amsterdam

Singapore

Ontario

Dallas/Forth Worth

Memphis

Source: SEDE

Shanghai

Bangkok

Aerotropolis under development

Logistics – Airport Locations

Iturama

Ituiutaba Uberlândia

Patos de Minas

Montes Claros

Diamantina Teófilo Otoni

Governador Valadares

Ipatinga

International Airport

Belo Horizonte

Pampulha Uberaba

Araxá

Divinópolis

Alfenas

Poços de Caldas Pouso

Alegre Varginha

São Lourenço

São João Del Rey

Barbacena

Juiz de Fora

Minas Gerais has 82 airports, and is planning to

built 69 more by 2012.

5 Inland Ports

The 1st industrial park accredited by

the Federal Customs Authority

The largest dry port in Brazil

Granbel Inland Port BH Metro Area

South Minas Inland Port - Varginha

Uberaba Inland Port

Inland Port Uberlândia

Inland Port Juiz de Fora

EXPOMINAS Exhibition & Convention Center One of the most famous venues of the country. It hosts some of the renowned international events linked to a variety of industries. Average of 50 national and international trade shows and events yearly. The area is multifunctional, flexible and connected by subway to downtown Belo Horizonte.

International Trade Shows

The state of Minas Gerais will make its presence in some of the most important international food fairs in the world in 2011 .

Administrative Center of MG

4 of Minas Gerais universities ranked amongst the 10 best universities in Brazil in 2010. UNIVERSIDADE FEDERAL DE LAVRAS UNIVERSIDADE FEDERAL DE MINAS GERAIS FUNDAÇÃO UNIVERSIDADE FEDERAL DE VIÇOSA UNIVERSIDADE FEDERAL DO TRIÂNGULO MINEIRO

Minas Gerais Universities world class education

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Dom Cabral Foundation

Dom Cabral Foundation ranks 6th among the best business schools in the world and the best in Latin America. Source: Financial Times, 2010

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Minas Gerais Federal University

Skilled Workforce

International Business with Minas Gerais

Source: Central Exportaminas – Panorama do Comércio Exterior de Minas Gerais - 2011

Balance of MG International Trade 5

.00

8

7.0

20

9.5

79

10

.80

0

11

.85

0

13

.92

9

12

.16

8

21

.25

9

9.8

72

12

.99

5 1

7.4

51

20

.51

7 2

4.8

60

34

.89

5

26

.86

9

41

.18

9

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Saldo Comercial / Net Trade Balance Corrente de Comércio / Trade Flow

Figures in US$ million FOB

Source: Central Exportaminas – Panorama do Comércio Exterior de Minas Gerais - 2011

Balance of MG International Trade

The 10 largest exporters in Minas Gerais 1. Vale 2. Comp. Brasileira de Metalurgia e Mineração 3. Fiat Automóveis 4. Nacional Minérios 5. Gerdau Açominas 6. Mercedes-benz do Brasil 7. Celulose Nipo Brasileira 8. Companhia Siderúrgica Nacional 9. Anglogold Brasil 10. Rio Paracatu Mineração

7.4

40

10

.00

7

13

.51

5

15

.65

8

18

.35

5

24

.41

2

19

.51

9

31

.22

4

2003 2004 2005 2006 2007 2008 2009 2010

- 2

0,0

%

+34

,5%

+35

,1%

+15

,9%

+17

,2%

+ 3

3,0

%

+ 6

0,0

%

2.4

32

2.9

87

3.9

36

4.8

59

6.5

05

10

.48

3

7.3

50

9.9

65

2003 2004 2005 2006 2007 2008 2009 2010

- 2

9,9

%

+22

,8%

+31

,7%

+23

,5%

+33

,9%

+ 6

1,2

%

+ 3

7,4

%

Total Exports

Total Imports

Figures in US$ million FOB

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World’s largest niobium producer

Brazil’s largest iron ore producer and exporter

Largest pig iron hub in the country

• Iron ore

• Niobium

• Pig iron

• Nickel

• Manganese

• Copper

• Bauxite

• Coal

• Cobalt

• Platinum

• Aluminum

Mining

37% of Brazilian raw steel production

Brazil’s leading flat steel company

MG has five of Brazil’s largest steel plants

Source: INDI 2007

Steel

MG is Brazil’s largest cement producer

12 plants / 8.8 million tons per year

Extensive private investments in mineral exploration

Holcim plant in Minas Gerais Source: SEDE 2005

Cement

5th largest exporter in the world of

granite, slate, quartz, marble and

soap stone

160 varieties of ornamental stone

Source: SEDE 2007

Ornamental Stone

Brazilian jewelry exports reached US$ 1.3 billion in 2006

Minas Gerais – leads national exports with excellence in design:

MG Gemstone Association - AJOMIG Jewelry company - Talento

63% exports of gold bars, gold strings and gold sheet 43% exports of colored gems 72% production of diamonds

Source: IBGM 2006

Gems and Jewelry

2nd largest car manufacturer in Brazil

8,3% of all vehicles exported nationally in 2008

21.7% of all domestic vehicle production

The largest FIAT plant in the world Mercedes Benz plant

Producing class C cars to US market

Source: ANFAVEA 2008

Automobile and Auto Parts

2nd largest car manufacturer in Brazil

8,3% of all vehicles exported nationally in 2008

21.7% of all domestic vehicle production

The whole chain is well stablished in the State

Source: ANFAVEA 2008

Automobile and Auto Parts

Clothing and textiles exports of US$ 195 million and US$ 168 million, respectively in 2008

A complete production chain from cotton to fashion

Largest Minas Gerais Textile Corporations: COTEMINAS

SANTANENSE CEDRO CATAGUASES

Source: ABIT – Brazilian Textile Association

Textile and Clothing

The cosmetics industry in Minas has

grown more than 20% over the past

few years.

Products with tropical appeal are

particularly succesful in foreign

markets.

Cosmetics

6th largest producer of footwear in Brazil

1,382 shoe factories in the state (2007)

US$ 16.22 million in exports (2008)

Fonte: ABICALÇADOS 2008

Shoes

LUMBER FURNITURE

The production area is greater than 1

million hectares of eucalyptus and 152

thousand hectares of tropical pine

22.5% of the tree plantations in Brasil

Modern and new production hubs

with a diversity of furniture products

806 new jobs in 2005

Minas Furniture Export Consortium Sier Móveis – Ubá Furniture Cluster

Source : AMS - Associação Mineira de Silvicultura

Wood

The state industry consists of 184 processing companies of resins, packaging,

pipes for construction, technical parts and footwear.

851 Companies that process plastic material

20,285 new jobs in 2008

Source: Abiplast – Brazilian Associtation for the Industry of Plastic

Plastics

9,5% of the national production – 2009 1.2 millions of tons produced in 2009

Source: BRACELPA

8.5% of country’s cellulose (pulp) 4th largest producer of cellulose in the country - 2009

Cellulose

The state shows rapid growth in the areas of electronics and software

It offers a highly skilled labor force and special financing and incentive programs

Company - Sense Electronics Clamper Electronics

Electronics

ETHANOL SUGAR 56 New units will be installed until 2013 3nd largest national producer in 2008/20009 20% of the production being exported

681 thousand hectares under cultivation (2009) 70% of the production – 54 million tones - being

exported

“Coruripe S/A” – a modern sugar cane plant in the Triângulo Region

Source: SEAPA/ CONAB (April 2009) Siamig/Sindaçúcar-MG (2008)

Source: SEAPA/CONAB , Apr 2009)

SOY CORN

Sixth largest producer in Brazil (2008/09)

2008/09 production: 2.67 million tonnes

Exports in 2008: US$ 271 million

The third largest producer in Brazil (2008/09)

2008/09 production: 6.43 million tonnes

Exports : US$ 44 million exported

Source: SEAPA

GRAINS

The largest irrigated area in Latin America for fruit, vegetable and ethanol production

Extensive variety of tropical fruits – banana, lime, mango, pineapple, others

Larger producer of vegetable seeds

Over 60 different types of fruit are grown in the Jaíba region

Jaíba Project

Common methods utilized by these companies for

preservation and processing of their fruit juices include canning,

pasteurizing, freezing and evaporation.

Juices – made in Minas

Brazil’s largest coffee producer

2010 : 1.50 million tonnes, or 52,3% of Brazilian production

Source: SEAPA

74% of Brazil’s coffee exports in 2007

63,6% of Brazil´s coffee exports in 2008

COFFEE

Source: SEAPA/Embrapa

Brazil´s largest milk and cheese producer 3rd largest cattle herd in Brazil Milk and Milk products 7.6 million head (dairy cattle) - 2008 2007: U.S. $ 116.1 million exported 2008: U.S. $ 252.9 million exported

Dairy products

3rd largest producer in Brazil

22.5 million head of cattle in MG - 2007

US$ 286.6 million in beef exports – 2008

Leader in Latina America for genetics associated

to cattle reproduction

Source: SEAPA/IBGE

Beef

8% of the national production of chicken meat (2008)

13% of the Brazilian egg exports

MG exported over 20 thousand tonnes of eggs (2008)

Source: AVIMIG & SEAPA

Chicken Meat and Eggs

Main export products: Honey, extracts, sprays, jelly, bio tablets, pollen, among others 99,7% of MG honey exports went to the USA (2007) 91,6% of MG honey exports went to the USA (2008)

Source: MDIC/SECEX/ALICEWEB

Honey and Phytotherapeutic Products

85 companies in the area of pharmaceutical compounds and research materials

Largest concentration of biotechnology firms in Latin America

The largest insulin plant in the world

ST Jude Medical Brasil Ltda in Belo Horizonte

Biotechnology

Qualified professionals in the field of Information Technology

High level of workforce graduating from specialized institutions and local universities.

Google’s Research and Development Center in Latin

America is located in Belo Horizonte

Technological park

Sou

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UFM

G

Business Consulting and strategic IT services outsourcing

From India to Belo Horizonte

IT

Artisanal work

Cachaça

Minas traditions and craft work

Central Exportaminas, a partnership between the Government of the State of Minas and entities of the private sector.

Central Exportaminas invests continuously in international business intelligence activities that seek the development of the export potential of the state, and forging of international demand, fostering business for Minas Gerais’ companies in other countries.

Get in touch: + 55 31 3269.55.18 – Mr. Paulo Campos - exportacao@exportaminas.mg.gov.br

Exportaminas