Brazilian Embassy in Oslo Trade Sector September 2009 NEWSLETTER Year 3 No.5

BRAZIL NORWAY

Brazilian Exports to the Nordic Countries US$ FOB Year Norway Sweden Finland Denmark 2007 650.590.587 634.423.475 525.034.610 279.487.888 2008 865.009.845 624.541.063 441.419.580 320.302.686 jan – aug 2009 366.845.622 189.725.698 210.300.635 168.181.901

Norway still the main market for Brazilian exports among the Nordic Countries. During the first eight months of 2009 Brazilian exports to Norway continued to represent more than twice the figures for Denmark, and are 93% higher than sales to Sweden, notwithstanding the relative fall in commodity prices in comparison to last year. The main items exported to Norway during Jan-Aug 2009 have been alumina, soy, coffee, bovine skins, carbides of silicon and accessories for pipelines, while the main items imported from Norway, in addition to the traditional “bacalhau” (dried fish), were liquefied petroleum gases (propane and others), fertilizers, machines and diesel engines.

Brazilian Minister of Fisheries and Aquaculture, leading large delegation, visited Aqua Nor. In the follow-up of the Brazil-Norway Memorandum of Understanding for Cooperation in Aquaculture signed in March, Minister of Fisheries and Aquaculture, Altemir Gregolin, visited the Aqua Nor - International Fair of Aquaculture, in Trondheim, from 17 to 23 August, leading a large delegation of experts, researchers and businesses. The Brazilian Minister and his Norwegian colleague Helga Pedersen opened the seminar “Opportunities for Cooperation and Investments in Aquaculture in Brazil”, organized by the Brazilian Embassy in Oslo. A collection of the presentations showed during the seminar are available at www.brazilchamber.no .

In his contacts with Norwegian authorities, researchers and businesses, Minister Gregolin emphasized that the Brazilian Government is firmly decided to develop aquaculture and fisheries in Brazil due to the large potential these activities, particularly in the areas of food security, job creation and preservation of the environment, specially in the Amazon region. Minister Gregolin considered Norway a strategic partner of Brazil in this area.

Aquaculture is a promising activity in Brazil, where production has more than doubled in the past ten years. The country has a 8.500km long coast, 13% of the world’s fresh water reserves and a domestic market of nearly 200 million consumers. According to the United Nation’s FAO, Brazil, which nowadays produces 1 million tons of fish per year, has the potential to produce 20 million tons/year, creating 10 million new jobs and generating yearly incomes of USD 40 billion.

During Minister Gregolin’s visit five agreements were signed between: 1) NOFIMA (Norwegian Institute of Food, Fisheries and Aquaculture Research) and EMBRAPA (Brazilian Agricultural Research Corporation); 2) SINTEF Fisheries and Aquaculture and the Ministry of Fisheries and Aquaculture of Brazil (MPA); 3) National Veterinary Institute of Norway, MPA and the Federal University of Santa Catarina (UFSC); 4) Institute of Marine Research in Norway (Havforskingsinstituttet) and MPA, and 5) Federal University of Santa Catarina (UFSC) and the Norwegian University of Life Sciences (UMB). During their stay in Trondheim, Minister Gregolin and the Brazilian delegation also visited the research vessel “Gunnerus”, the headquarters of SINTEF and salmon farm and processing plant in Hitra.

AMAGGI takes control of DENOFA. The Brazilian company Amaggi, part of the André Maggi Group, has bought Agrenco´s 40% stake in Denofa, a Norwegian soybean processing company located in Fredrikstad. In addition, Amaggi bought from Norgrain another 11% of the shares in Denofa, becoming the main shareholder. Norgrain will continue their presence in Denofa with 49% of the shares. Denofa is the only soycrusher in Scandinavia producing soybean meal and oil, as well as lecithin, for the feed and food industry from non-genetically modified soybeans. The company’s extraction plant generated revenues of

approx. NOK 1,3 billion in 2008 and 60 jobs. Amaggi has its own soybean plantations in Brazil and three large industrial extraction plants. Amaggi has been an important supplier for Denofa during many years.

Brazilian Sailing Vessel “Cisne Branco” (“White Swan”) in Oslo. The three-masted tall , which serves the Brazilian Navy as a sail-training vessel and accumulates representative functions, visited Oslo from 28th August to 3rd September. A Seminar on Brazilian and Norwegian Polar Activities took place onboard, opened by the Brazilian and with presentations by the Ministry of Foreign Affairs, the University of Tromsoe and the Nansen and Polar institutes. The ship was open for public visitation. Last year, the “Cisne Branco” visited Måløy and Bergen during August and participated in the “Tall ’ Race”.

Polar navigator Amyr Klink in Oslo. The Brazilian sailor and shipbuilder Amyr Klink visited Oslo for the second time on 1-2 September to participate as a speaker in the Seminar on Polar Cooperation on board the “Cisne Branco” and to give a lecture on polar navigation and exploration at the Norwegian Maritime Museum, in Bygdøy. Mr Klink hold a joint presentation with Mr. Knut Solberg, famous for his voyage “on the footsteps of Amundsen”. Joint activities were discussed between the Norwegian Maritime Museum and National Museum of the Sea, in São Francisco do Sul, in the state of Santa Catarina, south of Brazil ( www.museunacionaldomar.com.br ).

Aker Solution delivers in Brazil. Aker Solutions has delivered the first equipment for PetroquímicaSuape's Pure Terephthalic Acid (PTA) plant being built in the Port of Suape, in the State of Pernambuco, north east of Brazil. The new PTA plant will be the largest polyester plant in Latin America. The PTA plant will produce modern and competitive raw material for the textile industry in Brazil. It will come on line in the second half of 2010.

FMC Kongsberg Subsea acquires Brazilian contract. FMC Kongsberg Subsea has been awarded a contract with Petrobras to supply a subsea separation system for the Marlim field, located in the Campos Basin, offshore Brazil. The contract is valued at approximately USD 90 million. The FMC’s subsea separation system will separate heavy oil, gas, sand and water at a sea depth of approximately 2,950 feet (900 meters). The system will apply a novel pipe separator design, licensed and developed in cooperation with StatoilHydro. This will be the first deepwater deployment of subsea separation technologies in a mature field. It will also be the first separation system to include reinjection of water into a reservoir to boost production. The equipment will be jointly engineered between FMC’s operations in Brazil, Norway and the Netherlands.

Strong growth in the trade between Brazil and Iceland. The total trade flow between the two countries so far this year has already reached almost four times the total of last year, with figures totalling USD 80,8 million until July 2009 against USD 22,9 million in 2008. Brazilian exports to Iceland from January to August 2009 reached USD 77,4 million (5,7 times bigger than the whole 2008), with alumina as the main item, while Icelandic exports to Brazil dropped from USD 6,2 million to USD 3,4 million during the same period. The main items sold by Iceland to Brazil were frozen fish fillets and dried salted fish.

Social Issues - Brazilian National Secretary for Housing in Oslo. Brazil participated in the “International Seminar on Security in Slums” (Oslo, 27 and 28 August) and the meeting of the board of the “Urban Poor Fund International (UPFI)”, through its National Secretary for Housing, Mrs. Inês Magalhães da Silva, and her Chief of Staff, Cid Blanco Jr. During the seminar, Mrs. Magalhães da Silva presented the Brazilian experience and mentioned the increasing measures taken by the federal and state governments in the construction of housing units, opening of streets and pacification of territory disputed by drug traffickers. Finally, the Secretary pointed out that social issues are also part of Brazil´s environmental concerns.

Vice-President of FIRJAN in Norway, cooperation with NHO. During the first week of September, the Vice-President of FIRJAN ( State Industry Federation), Mr. Luis Chor, visited Oslo, Stavanger and Bergen, attending to invitation from the President of NHO, Mr. Finn Bergesen. The aim of Mr. Choir’s visit was to become acquainted with the experiences that large Norwegian companies like Statoil, Hydro, Det Norske Veritas and Yara have in the area of social responsibility. Mr. Bergesen confirmed the good cooperation that exists between NHO and FIRJAN, CNI (Brazil’s National Industry Confederation) and FIESP (São Paulo State Industry Federation), expressing particular satisfaction with the prospect of establishing a forum for dialogue, to be coordinated by the governments of both countries.