Why Invest in Rio Grande do Sul

1Why invest in Rio Grande do Sul

Department of Developmentand Investment Promotion

State Government

SUMMARY

ABOUT RIO GRANDE DO SUL

06 - Land of presidents07 - A state with competitive advantages08 - Our figures09 - Portrait of the economy10 - At the center of South America’s main markets11 - The power of growth12 - Structure of the economy13 - Industrial production14 - Highlights of the industry15 - Industry geography16 - Emerging offshore industry17 - Offshore industry’s supply chain18 - Highlights of agribusiness19 - Figures of interest for agricultural machinery industry20 - The electro-electronic industry from Rio Grande do Sul21 - Human resources in eletrical-eletrocnic area22 - Figures of interest for the automotive industry23 - Highlights at the Brazilian Universities ranking24 - UFRGS, our biggest university 25 - PUCRS 26 - UNISINOS27 - Innovation and Qualification28 - Tecnosinos, São Leopoldo’s technology park29 - Tecnopuc, Porto Alegre’s technology park30 - Invesment in professional courses31 - Varied options in professional training32 - The SENAI expertise for Metalworking33 - Senai CETEMP34 - Workforce with higher qualifications35 - Bilingual schools

DRIVEN BY INFRASTRUCTURE

38 - Renewable energy and safe offer39 - New investments in wind power generation40 - Wide transportation network41 - Connecting the State to Broadband 42 - Companies that have already chosen Rio Grande do Sul

WHY INVEST IN RIO GRANDE DO SUL

CONTACT:State Department of Development and Investment PromotionAv. Borges de Medeiros, 1501, 21th FloorPhone: +55 51 3288 1000www.sdpi.rs.gov.br

Why invest in Rio Grande do Sul4 5Why invest in Rio Grande do Sul

ABOUT RIO GRANDE

DO SUL


Land of Presidents

∂ Qualified personnel, increasingly progressing to more advanced education.

∂ Universities and research institutions with capacity to develop innovation in technology.

∂ Diversified industry with capacity to supply high-quality inputs.

∂ Reliable supply of water and energy.

∂ 2nd biggest electro-electronic industrial park in Brazil

∂ Possibility of combining airport, road, rail and water transport.

∂ One of the most complete Brazilian roadway networks.

∂ Maritime access for production outflow through the Port of Rio Grande, facilitating the integration with the Brazilian and Mercosur markets.

Seven presidents came from Rio Grande do Sul, including Brazil’s present leader…

Getúlio Vargas (1930-1945) Dilma Rousseff

A state with competitive advantagesFirst rate logistics and high skilled labor at the heart of the main South American markets…

Why invest in Rio Grande do Sul8 9Why invest in Rio Grande do SulWhy invest in Rio Grande do Sul

∂ Population: 10,695,532 inhabitants (2010)

∂ Cities: 497

∂ Population density: 38 inhabitants/km² (2010)

∂ Life expectancy at birth: 75 years (PNAD 2008)

∂ GDP in 2010¹: US$ 129.7 billion

∂ GDPpc in 2010: US$ 11,823.86

∂ HDI² Rio Grande do Sul: 0.832 (4th in Brazil and equivalent to the group of countries with “very high HDI” Ranks)

∂ HDI Brazil: 0.771 Source: FEE and IBGE

Note: (1) Preliminary data. Converted using the exchange rate for sale - US$/R$ 1.76, equivalent to the average value in 2010 – source: BCB/Boletim BP.

(2) 2005, PNUD/ONU

Our figuresIf Rio Grande do Sul were a country, it would have the 29th best human development index of the planet…

GDP in expansion, significant foreign trade and unemployment in decline…

Portrait of the economy

Why invest in Rio Grande do Sul

Source: SECEX/MDIC

Economy in 2010


Brazil GDP: US$ 1,161 billion 71% of Brazil’s GDPPopulation: 104,3 million 54,7% of Brazilian population

UruguayGDP: US$ 31,2 billionPopulation: 3,3 million

Radius of 2000 km

ArgentinaGDP: US$ 326,6 billionPopulation: 41,8 million

ParaguayGDP: US$ 16,9 billionPopulation: 6,5 million

GDP Growth (annual %)

Source: FEE e IBGE (1) Preliminary Data

%

At the center of South America’s main markets80% of South America’s GDP is produced inside a radius of 2.000 km around Porto Alegre...

Rio Grande do Sul’s economy has grown more than Brazilian economy in 2010…

The power of growth


Structure of the Gross Added Value of Rio Grande do Sul in 2009 Segments of the processing industry (in US$ billion)

Structure of the economyThe structure of Rio Grande do Sul’s economy is compatible with developed countries where the service sector is the most thriving sector…

Rio Grande do Sul has a strong and diversifiedindustry, ranking first or second position in several sectors of Brazilian industry…

Industrial production


Highlights of the industry

Industry geography

Rio Grande do Sul has a strong and diversified industry, being the 3rd largest industrial park of Brazil…

Spacial concentration of main industry clusters of Rio Grande do Sul...

∂ 1st producer of leather and footwear

∂ 1st center for transport equipment production

∂ 1st center for agricultural equipment

∂ 2nd electro-electronic industrial park

∂ 2nd center for furniture

∂ 2nd center for beverage production

∂ 2nd center for machines and equipment

∂ 2nd center for chemical products

∂ 2nd center for metal products

∂ 2nd center for rubber and plastics

∂ 3rd center for wind power generation

∂ 4th center for food manufacture

∂ 4th center for vehicle production

0 50 100 150 200km

Santa Catarina

Argentina

Paraguay

UruguayAtla

ntic O

cean

Porto Alegre

Agribussiness

Wind Power Offshore

Petrochemical

Automotive

Eletronicsand software

Metal Mechanicaland Machinery


A new offshore industry is emerging thanks to Rio Grande do Sul’s unique waterway system...

Offshoreindustry’ssupply chain

Emergingoffshore industry

Region: Santa Maria, Cachoeira do Sul and CharqueadasDraft: 2,5 m Distance: 230 Km

Region: Metropolitan area - TapesDraft: 5,2 m Distance to Ocean: 221,4 Km

Region: Serra and Vale do TaquariDraft: 54 m Distance: 87 Km

Region: Rio Grande, São José do Norte and Pelotas Draft: 5,2 m (Pelotas)Draft: 17 m (Rio Grande and São José do Norte)

Expansion area: São Gonçalo Channel, Mirim Lagoon and JaguarãoDraft: 5,2 m Distance: 58 Km (channel)Draft: 2,5 m Distance: 180 Km (Mirim Lagoon and Jaguarão)

Steel and Electronics(Porto Alegre - Vale dos Sinos Axis, Serra Gaúcha and North-west)

Equipments(Caxias do Sul)Automation(São Leopoldo)

Modules and Big Equipments(along the waterway)

Shipwards and EPC(Naval Pole)

Draft: 2,5 mDistance: 188 Km

Draft: 4 - 5 mDistance: 360 Km

Draft: 17 mRio Grande

and São José do Norte

∂ Attract Offshore Industry Investments to Rio Grande do Sul

∂ Sustainable industry:

∂ Estimulate Joint Ventures and International Cooperation

∂ Seamlessly Integrate the Offshore Industry with Rio Grande do Sul’s Production chain

∂ Develop programs for education, innovation, research and technology

Objectives for the emerging offshore industry

∂ Professional qualification

∂ Urban and Social Planning

∂ Enviromental planning


Rio Grande do Sul is Brazil’s 1st center for agricultural equipment...

Figures of interest for agricultural machinery industry

Source: RAIS 2011, ANFAVEA 2011Values converted using exchange rate for sale - US$/R$ 2,00, equivalent to the average value in 2009 - source: BCB/Boletim BP

∂ Highly heterogeneous industry,

∂ 24.169 jobs in Rio Grande do Sul

∂ 12.224 units sold in RIo Grande do Sul’s internal the market in 2010

∂ 19.176 units exported

∂ Rio Grande do Sul is home to 62% of the companies who supply the brazilian market

Rio Grande do Sul has a strong agricultural background

Highlightsof agribusiness

∂ Premium market: premium beef, organic products, etc.

∂ Wine and grape juice

∂ Rice, soya and corn

∂ Dairy products

∂ Food

∂ Poultry


The electro-electronic industry from Rio Grande do Sul

Human resources in electrical-electronic area

The importance and diversity of our electro-elec-tronic industry is shown by 181 companies divided into 10 segments...

The State’ s capacity to train and supply the project with capable human resources can be stressed by the number of students that graduate each year...

Superior Education comprises UFRGS, PUCRS, Unisinos, UCS, FEEVALE, UERGS and ULBRA

Source: ABINEE

Estimated number of technical and undergraduated students


Highlights at the brazilian universities rankingThe universities of Rio Grande do Sul reached a prominent position during the last assessment of the General Index of Courses done by MEC in 2008...

∂ Federal University of Rio Grande do Sul (UFRGS): 4th position overall.

∂ Pontifical University of Rio Grande do Sul (PUCRS): 3rd position among the private universities.

∂ University of the Vale dos Sinos (Unisinos): 4th position among the private universities.

∂ The Universities of Rio Grande do Sul have the highest proportion of teachers with master and doctor degree (75%) of Brazil (Synopsis of the Superior Level Education – 2009 – MEC).

∂ The post-graduation courses offered by the Universities of Rio Grande do Sul in Computer Science, Engineering and Material Sciences are ranked among the best in Brazil (Triennial Evaluation CAPES - Ministry of Education 2010).

The industry of Rio Grande do Sul has a tradition for the production of vehicles and related areas…

Figures of interest for the automotive industry

Total of the industry

Sub-total

Manufacture of rubber and plastics

Metallurgy

Manufacture of metal products, except machines and equipments

Manufacture of machines, devices and electric materials

Manufacture of machines and equipaments

Manufacture of motor vehicles, trailers and vehicle bodies

Manufacture of other transport equipment, except motor vehicles

18,314

5,322

941

200

2,115

283

1,291

437

55

651,904

209,893

31,131

13,393

50,493

12,576

55,947

45,186

1,167

63,578.5

21,138.2

2,459.4

2,559.5

2,944.0

949.6

5,496.3

6,416.0

313.4

DescriptionNumber of Local

Units

Number of Employees in

December 31st

Gross Value of industrial Production US$ Million

12% of Rio Grande do Sul’s GDPUS$15,5 billion in sales in 2010

Source: IBGE - PIA Empresa 2009Source: IBGE - PIA Empresa 2009Values converted using exchange rate for sale - US$/R$ 2,00, equivalent to the average value in 2009 - source: BCB/Boletim BP


Biggest university of Rio Grande do Sul and one of the best fifth in Brazil...

UFRGS, our biggest university

It has under its structure: ∂ 69 Graduation Courses ∂ 68 Master Programs ∂ 62 Doctoral Programs ∂ 500 Laboratories

∂ 37 thousand students, 75% at graduation and 25% at post-graduation.

∂ 77% teachers with Doctor Degree

Structure of the Engineering Courses ∂ 8 Undergraduate Courses ∂ 7 Graduate Programs ∂ 76 Research projects ∂ 49 Specialized laboratories

Highlights ∂ The Post-Graduate Course of Metal-

lurgical Engineering scored the maxi-mum grade on the national avalua-tion

∂ National Center of Supercomputing ∂ Regional Lab of Nanotechnology

CNANO - UFRGS/RS

PUCRS, one of our main universitiesIs the third best private university of the country...

It has under its structure: ∂ 55 Undegraduation Courses ∂ 24 Masters Programs ∂ 17 Doctoral Programs ∂ 89 Laboratories ∂ Technology Park: TecnoPUC ∂ Company Incubator: Raiar

∂ 30 thousand students, 85% at graduation and 15% at post-graduation.

∂ 77% 1.600 teachers with Doctor Degree

Structure of the Engineering Courses

∂ 6 Undergraduate Courses ∂ 4 Graduation Programs integrated with

the productive sector ∂ 10 Research projects ∂ 22 Specialized laboratories

Highlights ∂ It owns a high performance laboratory

(LAD) to improve research in IT and Engineering


One of the biggest private Universities of the country...

Unisinos, one of our main universities

It has under its structure: ∂ 71 Undergraduation Courses ∂ 19 Master Programs ∂ 10 Doctoral Programs ∂ 122 Laboratories ∂ Technology Park: Tecnosinos

∂ 26,1 thousand students, 88% at graduation and 12% at post-graduation.

∂ 89% teachers with Master or Doctor Degrees

Structure of the Engineering Courses

∂ 10 Undergraduate Courses ∂ 3 Graduate Programs ∂ 128 research lines at courses linked to

technology development

Highlights ∂ One of the specializations of Tecnosi-

nos is in the field of automation and engineering

Striving for quality and innovation for manufacturing processess and products

Innovationand qualification

∂ PGPQ - Quality and Productivity Pro-

gram since 1992

∂ Metrology Network

∂ International Innovation Conference

– Porto Alegre.


Tecnosinos, São Leopoldo’s technology park Tecnosinos, located in São Leopoldo, acts directly on the semiconductor industry...

∂ There are in the park 52 compa-nies from 9 different countries, 3800 jobs, 48 Patent and e Reg-istrations of IP, average growth rate of 30% per year and R$ 1,3 billion in sales

∂ One Technologycal Institute directed to the development of P&D and business support, focused in packaging and testing semiconductors

∂ The research involves 10 Doctor Degree, 21 Master Degree

Courses, 89 Research Groups.

Tecnopuc is the largest and most awarded technol-ogy park of Brazil, acting directly with photovoltaic panels and Information Technology...

Tecnopuc,Porto Alegre’stechnology park

∂ Companies: 62

∂ 5 PUCRS Research Centers, including NT-Solar -

Photovoltaic Solar Energy Research Center

∂ 22 incubated companies in RAIAR Incubator with more than 4100 people involved

∂ 150 R&D projects

∂ 60 researchers involved

∂ 160 doctorate and master’s grants

∂ 300 undergraduate grants


Investment in professional courses113 technical and technology-oriented institutions offer courses which improve the Human Resources quality …

Source: SE/SUEPROElaboration: SEPLAG/DEPLAN 11/2009

136 courses of technical education in a radius of 100 km around Porto Alegre...

Varied optionsin professional training

Professional Courses in a Range of 100 km from Porto Alegre

Data Processing, Software Development and IT

Electronics

Electromechanics

Mechanics

Mechatronics

Metrology

Environment

Refrigeration and Climatization

Gas Systems

86

26

2

12

6

1

1

1

1

Courses Number

136Total

There are several options of institutions providing professional training courses in the Metropolitan Area of Porto Alegre.

The main institutions are SENAI and Escola Técnica Liberato Salzano Vieira da Cunha.

∂

∂


The SENAI expertise for metalworking

Senai has 6 units specially devoted to training professionals for the metalworking industry...

Source: SENAI

Actual number of student’s in Automation/Mechatronicsand Automotive industry of SENAI-RS

1. Centro Tecnológico Automotivo SENAI

2. Centro Tecnológico de Mecânica de Precisão SENAI CETEMP

3. Centro Tecnológico de Mecatrônica SENAI

4. Centro Tecnológico do Mobiliário

5. Escola de Educação Profissional SENAI Automotivo - Porto Alegre

6. Faculdade de Tecnologia SENAI

917

-

80

15

2.143

-

12

217

1.199

46

-

346

929

217

1.279

61

2.143

346

Schools of Reference / Course

AutomotiveIndustry

Automation and Mechatronics

Total of the School

Number of Students per Area

3.155 1.820 5.005Total

Senai – CETEMP is internationally recognized due to its training in the area of precision mechanics...

Senai CETEMP

∂ CETEMP has an area of 9.000m², with labs, offices, classrooms and support sectors, allowing the development of the Precision Mechanics Technical Courses, Industrial Instrumentation and Work Safety, and the Professionals’ Initiation and Improvement

∂ Industrial Laboratory – Consisting of Dimentional, Tridimentional, Pressure, Mass, Power and Torque, Microscopy, Volumetry, Physical-Chemical Trials and Industrial Radiology, Metrology Laboratories that provide calibration, measurement and tri-als to Companies to guarantee the quality standards of their industrial processes.


Workforce with higher qualificationsUniversity and High School levels are improving, which means an increase in companies productivity and competitiveness…

Education of the Workforce of Rio Grande do Sul

FEE/NCS and IBGE Preliminary Data

∂ RIo Grande do Sul provides schools with options for a multicultural learning environ-ment of excellence, one that supports both English and Portuguese curricula and provides maximum opportunity for children to become confident, capable, and re-spected citizens of the world

∂ Adherence to standards that improve student learning such as qualified teachers, limited classroom size, ongoing curriculum improvement and intensity of studies.

∂ Brazilian & U.S. High School diplomas awarded.

∂ Largest network of schools in the world, shared resources and quality assurance.

∂ Portuguese as a Second Language (PSL): international students who arrive with little or no Portuguese are given in-class and pull-out support in their Portuguese and BSS classes while learning the language.

∂ Student centered events / real-life exchanges: National Honor Society, National Junior Honor Society, Brazilian Model United Nations, sports tournments, leadership training for students, knowledge bowl, math counts, Destination Imagination and international college fairs amongst others.

Bilingual Schools

High level of education in English and Portuguese languages and dual high school diplomas: Brazil and U.S...


DRIVEN BY INFRASTRUCTURE


Electric energy installed capacity in Rio Grande do Sul in 2009

Source: BEN 2010/MME

Renewable energy and safe offer69% of the power generated in our State is renewable. The installed grid is linked to the rest of Brazil. The State of Rio Grande do Sul is increasing its generation with more 650 MW...

Windpower

∂ The installed electric wind power generation in Rio Grande do Sul: • Today: 282 MW • Up to 2014: 1,056 MW already contracted

∂ It is an increase of 756% in wind electric power supply in 3 years

∂ This increase is provided by investments summing up US$ 2.6 billion

Biodiesel

∂ Rio Grande do Sul is responsable for 25% of Brazil’s biodiesel production.

∂ Installed capacity of 3.787,33 m³/day

New investments in sustainable energyRio Grande do Sul will receive up to US$ 2,6 billion in wind electric power generation...


The State has 12,896.22 km (87.2%) of paved roads, besides the new roads that are built created (more than 1,531.37 km).

Wide transportation networkThe road, river and train infrastructures are connected to the main airports...

∂ The Broadband Plan is an action developed in partnership with Telebrás to establish high-speed internet with optical fiber technologies and digital radios, which will provide fast internet access to areas where broadband is not available and stimulate the competition.

∂ The government’s goal is the implementation of one thousand km of optical fiber from 1 to 10 Gbps speeds in the first phase, which can be expanded up to 40 Gbps.

∂ The Rio Grande do Sul’s Broadband Plan is expected to begin in the second semester of 2011 and will be concluded until the end of 2012, at an estimated cost of US$ 55.7 million.

Connecting through the State BroadbandThe current administration of Rio Grande do Sul is preparing a plan to deliver faster broadband connection. The total investment is US$ 55.7 million…


Companies that have already chosen Rio Grande do Sul Foregn companies operating in the State...

Department of Developmentand Investment Promotion

State Government

Documents

Why Invest in Rio Grande do Sul