La Araucanía, Region of opportunities Welcome to La Araucanía

La Araucanía is in the SOUTHERN IT IS DIVIDED INTO THE MAIN ECONOMIC AREA OF , and it is one ADMINISTRATIVE of the 16 regions into which the ACTIVITY IS country is divided. 2 CAUTÍN AND farming and forestry, MALLECO GIVEN ITS IS THE CAPITAL CLIMATE AND SOIL OF THE REGION. AND 32 DISTRICTS. CONDITIONS.

LA ARAUCANÍA FOREIGN INTERNATIONAL AIRPORT INVESTMENT Currently comes from the United IS LOCATED AT FREIRE States, Japan and Argentina, among DISTRICT, 20 KM SOUTH others, in different sectors such as OF TEMUCO. AGRICULTURAL INDUSTRY, ENERGY AND TECHNOLOGY.

The main regional terrestrial logistics The regional railway infrastructure The regional energy supply is infrastructure is the Ruta 5 Sur, which has a cargo network through which guaranteed thanks to the local connects to Chile’s Pan American over 10 million tons are annually production with wind, thermal and Highway, allowing communication transported, thus constituting hydraulic sources. The region is from the border with Perú until a logistical alternative for the connected to the National Electric Quellón city. The main cargo border is challenges of the mining, forestry, System [Sistema Eléctrico Nacional Pino Hachado, which allows imports industrial, agricultural and (SEN)], a network complying with and exports to connect with the ports containers industries. the 360 V three-phase requirements of Lirquén, Coronel and San Vicente. which guarantees energy for industrial production purposes.

PAG 2-3 PAG 4-5 PAG 6-9 PAG 10 PAG 11 Welcome to La Araucanía. Why La Araucanía? Investment Opportunities Regional economy profile Some Figures 2 The region at a glance. Our contribution as partners The region at a glance

PERÚ AREA OF ITS NORTHERN BOLIVIA BORDER IS WITH 869.535 31.842,3km2 BIOBÍO REGION, TO POPULATION= inhabitants THE SOUTH WITH ARGENTINA EQUIVALENT TO LOS RÍOS REGION, TO THE EAST WITH EQUIVALENT TO 5.8% OF THE CHILE 4.2% OF THE ARGENTINA AND TO DOMESTIC POPULATION, WITH A LA ARAUCANÍA COUNTRY’S AREA. THE WEST WITH THE DENSITY OF 27.3 INHABITANTS/KM2. REGION PACIFIC OCEAN. SOUTH AMERICA NATIVE FORESTS, CLIMATE Roads LANGUAGES: VOLCANOES, AND SOIL covering SPANISH AND CONDITIONS RIVERS, AND 1.827.719 km, MAPUDUNGUN. LAKES ARE A PART FAVORING A COPIOUS VEGETATION, which OF THIS ZONE’S WITH UNIQUE SPECIES represent 7% of LANDSCAPE. IN THE WORLD SUCH the country’s AS THE ARAUCARIA. total.

LA ARAUCANÍA REGION

It has an Industrial and Technological estate managed by the Corporación para el Desarrollo Productivo de La Araucanía (Corparaucanía), 23 km from Temuco, with an area of 430 hectares. The purpose of it is to create a center to unify companies and entities, improving In the beginning of 2019, the competitiveness, productive development, and Regional Government created the the incorporation of new technologies. first Regional Unit for Direct Foreign Investment Promotion and Attraction, InvestAraucanía.

La Araucanía, Region of opportunities 3 Why La Araucanía?

Our contribution as partners regional strengths

Multicultural population. Communities belonging to indigenous people deliver a seal multiculturality of quality to the production of local goods and services. This is the region in Chile concentrating the greatest presence of indigenous population communities. collaboration Tourism attractions. Five national Parks, six national reserves and two natural monuments, volcanoes, lakes, and rivers are a perfect scenario. Together with the world view of its ethnic value communities, they create an ideal atmosphere for productiveness with respect for the environment, biodiversity and multiculturality. biodiversity Innovation ecosystem. The presence of entrepreneurs, private companies, and universities, together with a public sector enabling interaction spaces among such entities allowing for development opportunities in this area. innovation ecosystem

4 La Araucanía, Region of opportunities The capability to “build companies” includes initiatives such as Araucanía Digital, that intends to convert the region into a technological development center which is a reference not only at a domestic, but also at a Latin American level.

La Araucanía, Region of opportunities 5 European Southern Hazelnut Wines

La Araucanía has a large area available to grow European Hazelnut. The first vineyards were planted in the region in the mid-nineties.

THE GROWN AREA IS OF ABOUT 130 HECTARES OF DIFFERENT COLD DURING THE LAST ITALY IS CURRENTLY WEATHER GRAPE VARIETIES SUCH AS THE DESTINATION FOR 10 YEARS PINOT NOIR, CHARDONNAY 95% OF EUROPEAN AND SAUVIGNON BLANC. IT HAS SHOWN A HAZELNUT EXPORTS GREAT EXPANSION FROM CHILE. IN THE REGION. Wines intended for a premium segment given their characte- ristics, among them being the climate at origin.

A significant characteristic of Chile, compared to the large worldwide This is the most southern region that has achieved continuity producers is its location in the southern hemisphere, added to the with a significant production. country’s phytosanitary conditions and an important number of free trade agreements.

Investment Opportunities Technological Tourism Industry and software development

La Araucanía region has three features granting a competitive advantage This sector’s opportunities may be split into two areas: in this market:

THE EXISTENCE OF AN ALREADY INSTITUTIONALIZED INNOVATION ADVENTURE TOURISM AND USE OF ECOSYSTEM, DRIVEN AT A DOMESTIC AND REGIONAL LEVEL. NATIONAL PARKS

THE ACKNOWLEDGMENT OF A COMPETITIVE PERFORMANCE INTEGRATED OPERATION OF MOUNTAIN IN SPECIFIC PRODUCTIVE SECTORS, BOTH AT A DOMESTIC AND TOURISM SERVICES REGIONAL LEVEL (AGRICULTURAL INDUSTRY, MINING), BENEFITTING TECHNOLOGICAL SUPPLIERS OF THESE INDUSTRIES. La Araucanía has five national parks, six national reserves and two natural monuments, equivalent to approximately 10% of GIVEN ITS GEOGRAPHICAL LOCATION, WHICH IS the regional area; it also has several volcanoes, lakes, and rivers. ATTRACTIVE FOR SOME MARKETS WITH REGARDS TO OTHER POTENTIAL SUPPLIERS SUCH AS INDIA OR SOUTH KOREA. With different sites of geological interest, biodiversity, lands- cape, and cultural-historical aspects, it is possible to develop The region, mainly Temuco city, has a trained workforce for the develop- adventure tourism activities during the 365 days of the year, in ment of this industry. The labor cost for this sector is approximately 25% addition to multiple mountain activities. lower than in the rest of the country.

La Araucanía, Region of opportunities 7 Berries Deli Sustainable products aquaculture production

Chile is the greatest fruit producer and export- Deli products, also known as specialist The aquaculture industry has a great potential, er of the southern hemisphere and one of the butcher, corresponds to production and both locally and worldwide. It is estimated that worldwide leaders in the export of products such marketing of meat products, mainly de- by 2030, over 60% of fish for human consump- as cherries, blueberries and grapes. rived from pork, with preservation of meat tion will be provided by aquaculture (GAA, Global through cooking, salting, smoking, matur- Aquaculture Alliance). LA ARAUCANÍA HAS AN ing, or fermenting. ADVANTAGEOUS SOIL AND LA ARAUCANÍA HAS ONE OF THE CLIMATE, ALLOWING IT TO ENCOURAGEMENT, MOST IMPORTANT FRESHWATER CONTINUE CONSOLIDATING DEVELOPMENT RESERVES IN CHILE, COVERING ITS SHARE IN PRODUCTION AND POSITIONING AND EXPORT, PARTICULARLY OPPORTUNITY FOR A 25% OF THE CONTINENTAL OF BLUEBERRIES, CHERRIES, PRODUCTION MARKET HYDRIC RESOURCES IN THE RASPBERRIES AND ALREADY EXISTING IN COUNTRY. CRANBERRIES OR RED THE REGION, AND ROOM BLUEBERRIES. FOR THE DEVELOPMENT Introducing new technologies and OF INITIATIVES ORIENTED processes aimed to strengthen There is a growth trend in the worldwide de- TO INNOVATION IN sustainability of the initial links in the mand for these products, opening a space for salmon production chain is one of the HEALTHY AND/OR business opportunities. producers to increase their capacity and for the PREMIUM DELI PRODUCTS. entrance of new players, given the market’s at- traction. Investment Opportunities Industrial pharmaceutical Geothermal electric laboratories generation

The aquaculture industry has a great potential, THE WORLDWIDE PHARMACEUTICAL La Araucanía region shows a competitive advantage given its six both locally and worldwide. It is estimated that MARKET IS GROWING, AND THIS TREND volcanic complexes in the territory, located in its mountain range area. by 2030, over 60% of fish for human consump- IS EXPECTED TO CONTINUE DURING THE tion will be provided by aquaculture (GAA, Global Aquaculture Alliance). NEXT FEW YEARS. THE USE OF NON-CONVENTIONAL LA ARAUCANÍA HAS ONE OF THE RENEWABLE MOST IMPORTANT FRESHWATER IN CHILE, THIS MARKET IS CHARACTERIZED FOR OPERATING UNDER A FREE TRADE MODEL. ENERGIES IS A RESERVES IN CHILE, COVERING NATIONAL POLICY. 25% OF THE CONTINENTAL HYDRIC RESOURCES IN THE THE CREATION/INSTALLATION OF IN 2019, 238 PROFESSIONALS OF CAREERS COUNTRY. PHARMACEUTICAL LABORATORIES STRATEGICALLY RELATED TO THIS BUSINESS IN THE REGION REPRESENTS A OPPORTUNITY OBTAINED THEIR DIPLOMAS. Introducing new technologies and BUSINESS OPPORTUNITY FOCUSED ON processes aimed to strengthen INDUSTRIAL LABORATORIES RENDERING sustainability of the initial links in the THE LABOR COST OF THIS INDUSTRY IS 18% salmon production chain is one of the SERVICES TO KEY SECTORS. LOWER COMPARED TO THE REST OF THE COUNTRY. business opportunities.

La Araucanía, Region of opportunities 9 Regional economy profile

The main activity in the region is farming and forestry, given its climate and soil conditions. The most important are traditional cropping, livestock and forestry production, areas in which it has an outstanding position in the country.

The agricultural activity includes crops of oat, Services also represent a significant sector of barley, and rye, in addition to lupine and pota- the dynamic local economy. toes. They represent the greatest areas culti- vated in the country (except for potatoes). The During the last few years, a significant growth in growth experienced in the production of hazel- the forestry activity of pine and eucalyptus has nuts and berries should also be highlighted (es- been observed, mainly in Malleco . pecially export blueberries). The region has a great tourism potential given Livestock production also plays a significant role the beauty of its landscape composed by in the regional economy, particularly the bovine forests, lakes, rivers, volcanoes, and mountains, sector, being the second region with the great- with a wide offer of hotel and tourism complexes est production in Chile. services.

10 La Araucanía, Region of opportunities Some Figures

Despite its relatively small size, Regarding the main economic La Araucanía region has shown activities performed by workers in La a dynamism higher than the Araucanía, in 2019 the greatest number average in the country since 2015 of employees was concentrated in: and up to date. AGRICULTURE; TRADE, TEACHING AND CONSTRUCTION.

IN 2018, LA ARAUCANÍA REGION FIGURE 1. RECORDED AN ECONOMY Employees by sector, Araucanía, 2019. EXPANSION OF

OTHER 17% AGRICULTURE, 18% LIVESTOCK, FORESTRY AND 4% FISHING 4,3% TRANSPORT AND STORAGE COMPARED TO 3.9% FOR THE 437,908 6% INDIVIDUALS 17% CHILEAN ECONOMY. HEALTH CARE ACT. 2019 WHOLESALE AND RETAIL IN 2019, THIS GROWTH 7% TRADE PUBLIC ADMINISTRATION AMOUNTED TO 1.7% AND AND DEFENSE 1.1% FOR THE REGION AND 8% MANUFACTURING 12% COUNTRY, RESPECTIVELY. INDUSTRIES 11% TEACHING CONSTRUCTION

SOURCE: CSP INGENIERÍA INDUSTRIAL U. DE CHILE BASED ON INE DATA

SINCE 2018 STATISTICS HAVE SHOWN AN INCREASE IN THE LABOR FORCE, AND A DECREASE IN THE UNEMPLOYMENT RATE, TO 6,9%, BELOW THE NATIONAL AVERAGE.

La Araucanía, Region of opportunities 11 CONTACT US To learn on La Araucanía and the investment opportunities offered by the region, we invite you to visit us. www.investaraucania.com WhatsApp +56982126680 [email protected]

@investaraucania @investaraucania InvestAraucanía ConnectAmericas: https://connectamericas.com/es/company/investaraucania

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