Belo Horizonte State of Minas Gerais

An emerging gateway for worldwide businessin the heart of Brazil

Minas Gerais’ FiguresMinas Gerais and the Mercosul-Chile Axis

Minas Gerais Robust Economy

Belo Horizonte - A Multimodal HUB in Brazil

• The most diversified economy and 2nd largest industrial park

in Brazil.

• 2nd most important State in exports, agribusiness and industrial

production.

• Exports US$25 billion and imports over US$10 billion

(Estimate for 2010).

• 5th largest importer.

• Most extensive highway and railway network in Brazil.

• 65% of Brazil’s GDP and Consumer Market in an area of

1,000 km radius.

• 66 regional airports serving 853 municipalities.

• 5 Inland ports, including the largest one in Brazil and the only

one accredited as Industrial Inland Port (Special Development

Zone).

Mining

• Brazil’s largest iron ore producer and exporter.

• World’s largest niobium producer.

• Largest pig iron hub in the country.

• 37% of Brazilian raw steel production.

• Brazil’s leading steel plate production.

• Brazil’s largest cement producer.

Stones and Gems

• 5th largest exporter in the world of granite, slate, quartz,

marble and soap stone.

• 63% of the total Brazilian exports of gold bars, gold strings and

gold plates, 43% exports of colored gems and 72% production

of diamonds.

• Other sectors: textile and clothing, cosmetics, shoes, wood,

plastics, cellulose, electronics, ethanol and biofuel, grains (i.e.

soy and corn), coffee and dairy products, beef and chicken,

biotechnology, IT (i.e. Google branch).

• Jaiba: one of the largest irrigation projects in Latin America for

fruits (60 varieties), vegetables and ethanol production.

MINAS GERAIS

BELO HORIZONTE

MINAS GERAIS

BELO HORIZONTE

RIO DE JANEIRO

BELO HORIZONTE

JUIZ DE FORA

TEÓFILO OTONI

MONTES CLAROS

BRASÍLIA

1.000 KM

VITÓRIA

SALVADOR

PARANAGUÁ

CURITIBASANTOS

SEPETIBACAMPINAS

CAMPO GRANDE

GOIÂNIA

UBERLÂNDIA

UBERABA

SÃO PAULO

South America’s global competition area

Automobiles:

• The largest FIAT automobile plant in the world.

• 2nd largest car manufacturer in Brazil.

• 8.3% of all vehicles exported in 2008.

• 21.7% of all domestic vehicle production.

MINAS GERAIS

BELO HORIZONTE

Airside – Terminal 2

TNIA surrounding area

Tancredo Neves International Airport

The first airport in Brazil planned based on the airport city concept

(Belo Horizonte Metropolitan Airport)

Hall – Terminal 2 (Conceptual Design) TNIA Master Plan (2009 - 2039) - Built-up

• Larger airports are taking on features of metropolitan

central business districts, increasingly operating as points

of multimodal surface transportation convergence with

surrounding office, hotel and commercial facilities. Under

the airport city model, many airports are becoming

significant employment, shopping, business meeting and

entertainment destinations in their own right.

• TNIA is under development to become the 2nd most

important gateway of Brazil in the next 10 years for

passengers and cargo.

• It encompasses the first Brazilian Industrial Airport (Special

Development Zone – bidding procedures already initiated).

• TNIA Master Plan (4 phases: 2009 - 2039)

Up to 39 million passengers/year.

Up to 440 thousand tons of cargo/year.

Up to 330 thousand aircraft movements/year.

Belo Horizonte has been recognized as the first

territory in South America implemented based

on the functional concept of Airport City.

Fast Company Magazine, July - August/2006

Belo Horizonte Metro Area“A strategic location to leverage competitiveness”

• Population estimation

- Belo Horizonte Capital: 2.4 million inhabitants

- Greater Metropolitan area: 5.2 million inhabitants

• The city holds one of the largest and most modern convention

centers in South America.

• Tancredo Neves International Airport is currently the 6th busiest

airport and the 5th most profitable in Brazil.

• The city holds the 1st Industrial Inland Port in Brazil (similar to

Special Economic Zone).

• Belo Horizonte will host several world cup soccer matches in

2014.

• The only Metropolitan Region with an Environmental and

Urban Governance Plan designed to transform the region into

a highly competitive territory in a global scale, throught the

development of a High Technology Multimodal Corridor.

Expominas Exhibition Center New Administrative City of Minas Gerais Belo Horizonte Capital

Broad Structural Plan for the High

Techonolgy Multimodal Corridor

Hub in the Belo Horizonte Metro

Area under implementation.

• Efficient land occupation is the objective of this broad Structural

Plan and a requirement for developing the necessary infrastructure

of key industries as Aeronautical & Defense; IT; Life Sciences and

Eletronic Components.

• The largest available soft land area in the Southeast region of

Brazil.

• The planning focus is to improve the physical development of

the area into a city of excellence and an international investment

hub by:

- Safeguarding and providing land for development to meet all

needs, aiming for investments intensive in knowledge and

technology.

- Encouraging sustainable social-economic growth and

coordinated development of infrastructural equipment.

- Enhancing the quality of life and creation of qualified jobs.

Special Economic Zone

Advantages of the1st Brazilian Industrial Airport Customs Procedure(under regulation of the Federal Revenue and Customs Bureau)

GeneralCompanies must pay the necessary

import and domestic taxes when

importing parts or components, and

domestic taxes when buy them on the

domestic market.

If they sell their products on the

domestic market, they must pay

domestic taxes.

If they export, the products are exempt

from domestic and export* taxes.

*Except tobacco and raw leather

DrawbackIf they export their products, they do not

have to pay either for domestic or export

taxes.

• Refund: Companies must pay the

necessary import and domestic taxes

when importing parts or components, and

domestic taxes when buying them on the

domestic market. When they export their

products, they have to request the tax

credit in the next 2 to 4 months.

• Suspension: when importing parts or

components for goods to be exported,

imports and domestic taxes will be

temporarily suspended.

• Exemption: Companies must pay the

necessary import and domestic taxes

when importing parts or components, and

domestic taxes when buying them on the

domestic market. When they export their

products, they have to request the tax

credit in the next 2 to 4 months in order

to import similar parts and components

without paying taxes, replacing their

stock.

Industrial Airport (SDZ) – Phase 1 Industrial Airport (SDZ)– Phase 2SDZ conceptual design

Industrial Airport (Special Development Zone)• Companies may import parts or components,

or buy them on the domestic market, without

paying any taxes. They are immediately sent to

their assembly lines, and further processed and

exported with tax exemption, increasing their

competitiveness in the international market.

• Operations allowed: manufacturing, storage,

exhibition, demonstration, testing, overhaul

and repair.

• The production can be sold on the domestic

market as well; in this case, the import and

domestic taxes only have to be paid when

the goods leave the industrial airport.

• Computerized control: agility and speed for

customs clearance and goods supervision.

• Reduce costs of storage, security, transportation

and taxes.

• Priority for high technology industries

and added-value goods manufacturers

for worldwide markets, such as medical

and hospital equipments, biotechnology,

electronic trade and aeronautics.

State Secretariat for Economic Development Government of Minas Gerais

Cidade Administrativa do Estado de Minas Gerais

Rod. Prefeito Américo Gianetti, s/n

Préd. Minas - 3° andar - Bairro Serra Verde - 31630-900

Belo Horizonte - Minas Gerais - Brazil

Tel: +55 31 3915-2997 | Fax: +55 31 3915-3079

www.desenvolvimento.mg.gov.br

Exportaminas CenterAv. Afonso Pena, 2.910 - Térreo - 30130-007

Belo Horizonte - MG - Brazil

www.exportaminas.mg.gov.br

email: central@exportaminas.mg.gov.br

Tel/Fax: +55 31 3269-5500

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