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ACKNOWLEDGEMENTSACKNOWLEDGMENTS The American Chamber of Commerce for , being the largest Amcham outside the United States is constantly serving its members by building bridges for Brazilian businesses worldwide. TheOur American foreign Chamber investment of Commerce attraction for Brazil, ef beingforts the have largest also Amcham been outside a key the leading United States point is constantly for Amcham. serving its The How membersto Series by building is part bridges of this for initiative. Brazilian businesses With the worldwide. support Our of foreign some investment of our corporateattraction efforts members have also we been are a putting keytogether leading point strategic for Amcham. information The How to Serieson the is part most of this various initiative. aspects With the supportof doing of some business of our corporate in Brazil. members As part of th weBRICS are putting (Brazil, together strategicRussia, information India, China on the most and various South aspects Africa) of doing and business representing in Brazil. As the part 6of BRICSlargest (Brazil, economy of Russia,the world, India, China Brazil and South has Africa) clearly and representing demonstrated the 7th largest its economyimportance of the world, in the Brazil global has clearly market. demonstrated The itscountry’ s importancebusiness in environmentthe global market. Theas wellcountry’s as businessforeign environment investment as well numbers, as foreign investment despite numbers, international despite international crisis, continues crisis,very continues positive. very Mediumpositive. Medium and andhigh high classes classes are are increasing, increasing, which creates which a solid creates internal amarket solid and internal contributes market to and contributes to maintain good results in the economy. The 2014 FIFA World Cup has been estimated maintain good results in the economy. The 2014 FIFA World Cup has been estimated in US$ 56.8 billions and the 2016 Olympics in USD 56.8 billions and the 2016 Olympics in USD 19.3 billions in investments. These events have in US$ 19.3 billions in investments. These events have had an impact on direct investments in Brazil and in infrastructure projects had an impact on direct investments in Brazil and in infrastructure projects needed to hold them in needed to hold them in the country. It is now more than ever a strategic time for businesses opportunities in Brazil. We welcome the country. It is now more than ever a strategic time for businesses opportunities in Brazil. We youwelcome and hope that you the and information hope thatyou are the about information to read serves you you best. are about to read serves you best.

GabrielGabriel Rico Rico- CEO, Amcham- CEO, Brasil Amcham Brasil

Recent data on Rio Grande do Sul economic performance provides evidence of the state’s dynamism. In 2013, the growth of the state’sRayes gross & domestic Fagundes product Advogados (GDP) led the Associados national ranking, is with a full a 5.8% service increase, law while firm the overallrecognized Brazilian forrate itswas expertise2.3%. and Inexperience addition, RS saw in 6.8% representing industrial production and growth,advising ahead foreign of the 1.2% companies national average. and Unemployment individuals statistics in Brazil.(3.5%) and Over the exportsyears, (+44.3%) we have also highlightlearnt thatRio Grande it is importantdo Sul’s economic not performanceonly to provide in comparison specific with the legal national support, average. but also to help our clients understand the whole environment in which they will make their decisions. The idea Theseunderlying results are athis reflection brochure of a combination is providing of different foreign factors, investors such as Rio andGrande entrepreneurs do Sul’s strategic withlocation, an the overview diversity of the ofmain its economy legal and aspects an environment for establishing that is favorable a tocompany business. It oralso simply reflects thedoing work businessdone by the statein Brazil. through its Our Industrial relationship with Amcham is a long-standing one and comes from the great number of US companies and Policy, drawn up to promote Rio Grande do Sul’s economic development. All these aspects are described in detail in this individuals we have been advising since the firm´s inception. publication, which aims to supply interested parties with the information necessary to make investments in the state.

IvanJoão De Pellegrin Paulo - CEO,Fagundes Rio Grande, Foundingdo Sul Development Partner Agency (AGDI)Lia Esposito Roston, Partner Rayes & Fagundes Advogados Associados Rayes & Fagundes Advogados Associados STATES CONTENT

01 ABOUT RIO GRANDE DO SUL 06

02 ORGANIZATION AND DEVELOPMENT 14

03 ESTABLISHED ECONOMY 17

04 NEW ECONOMY 22

05 SUPPORT FOR INVESTMENTS 25

06 INNOVATION AND TECHNOLOGY 27

07 INFRASTRUCTURE 29

08 EDUCATION, SAFETY AND HEALTHCARE 34

09 TOURISM AND CULTURE 37

10 USEFUL CONTACTS 39

11 ABOUT OUR SPONSOR 42 06 STATES Credit: CamilaDomingues/Palácio View ofPorto Alegre, capitalofRio GrandedoSul America’s mainmarkets. of theSouthernCone,justafewhoursawayfromSouth border withUruguayand Argentina, intheexactcenter Paulo andBuenos Aires, Argentina. The stateisonthe to Santiago,Chile,andliesbetweenthecitiesofSão city closest Brazil’s is it cities: strategic other to close area of281,730km².ItscapitalcityPorto Alegre is over 11 millioninhabitantslivingin497cities,onatotal has it state: populous most fifth country’s the is Sul do Located atthesouthernmosttipofBrazil,RioGrande ABOUT RIOGRANDEDOSUL STRATEGIC LOCATION 01. THE MAINBRAZILIANANDMERCOSURCITIES. DISTANCES ALEGREAND BETWEENPORTO Montevideo (Uruguay) Asunción (Paraguay) Buenos Aires (Argentina) PauloSão (Brazil) deJaneiroRio (Brasil) Brasília (Brazil) Santiago (Chile) La Paz (Bolivia) Lima (Peru) Quito (Ecuador) (Colombia) Bogota R$ 310.5 billion in 2013* – nearly threeR$ 310.5billionin2013*–nearly timeshigherthanthenational rate Grande doSul’sRio Gross Product Domestic (GDP) grew presented thebiggestgains andequipment, andbeverages rubber andplastic, machinery average of1.2%. The petroleum andalcohol refinery, automotive vehicles, Grande doSul’sRio growth industrial was Gross Value Added (GVA) The state’s earned agricultural industry the national average Grande doSul’sRio GDPper capitais in thenational total The state was thethird largest exporter, with10.36%participation 44.3% representing 64%oftheGVA contributed sector with The service The state represents The industry representedThe industry City or US$7.7 billion were how much RS exports increased in 2013. orUS$7.7billionwere increased in2013. how muchRSexports 6.42% State Statistic R$ 61.2 ofthenational GDP billionintheGDP, 26.9%oftheGVA R$ 145.6 R$ 27,813.21 R$ 20.9billion 6.8% billion to the GDP in this period, billionto theGDPinthisperiod, , ahead of the national , aheadofthenational – 15.6% higher than –15.6%higherthan in 2011, 9.2% of the in2011,9.2%ofthe 5.8% in 2013, reaching in2013,reaching 1,119 km 1,572 km 1,623 km 1,875 km 2,289 km 3,330 km 4,401 km 4,560 km 712 km 824 km 844 km

Km settlements in the17 around theworld. This occupation began withtheJesuit Rio GrandedoSulreceived waves ofimmigrants from Initially inhabited byindigenous peoples, little by little The HISTORY ing theevaluatedcriteria. comparison tothelargest states inSouth America accord . This table presents Rio Grande do Sul in economic andsocialdatafrom237statesprovincesin third mostpromisingstateinBrazil. The surveyevaluated publication producedbytheFinancial Times group.Itisthe of theFuturerankingdonebyFDIMagazine,abi-monthly The statewaslisted Favorable businessenviroment Infrastructure Economic Potential Human Capital *Source: FundaçãodeEconomiaeEstatística(FEE) the 2013HumanDevelopment Atlas ofBrazil years 2years –nearly more thanthenational average –according to Average for Grande doSul’s Rio life expectancy inhabitants is City economic development ontheBrazilian ranking, standing outfor oflifesixth quality and as high(theindex-ranges goesfrom 0to 1). The state comes in Grande doSul’sRio humandevelopment index is Gaucho territory is made up of a mixture of peoples. State Statistic 9 th th onthe2014South American States century, which later gave riseto 0.746 Ranking , classified 8 8 7 6 th th th th 75.38

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07 HOW TO INVEST IN RIO GRANDE DO SUL 08 STATES do SulisaBrazilianleader: See justafewofthe industrial sectors whereRioGrande also reliesonstrongparticipationfromtheservicesector. and continue adding to the region’s development, which state’s transformation industry aresectorsthathaveleveraged the made influences of economy just asdiverseitsculture. Agriculture and the variety great a Such DIVERSITY among othernationalitiesindifferent periods. but therewerealsoPoles, Africans, JapaneseandSpaniards, and RioGrandedoSulreceivedmainlyGermansItalians, European immigrationwasstrongthroughoutthe19 century andweremainlyinvolvedinwheatproduction. cattle. Portuguese Azorean immigrantsarrivedthefollowing state’s economywithitsproductionofyerbamate,leatherand Sete PovosdasMissões production andautomotive vehicles. The fourth largest industrial complex for food The thirdlargest center for wind powergeneration. and rubber, andnaval. equipment, chemicals, metal-mechanical, plastic electronics, furniture, beverages, machinery and The secondlargest industrialcomplex for agroindustry. footwear, wineandsparkling wine,rice and wheat agricultural machinery and implements, leather and biodiesel, roadconstructionandbusimplements, The largest industrial complex for automation, , a region that became important for the , aregionthatbecameimportantforthe th century, was responsiblefor30.7%ofthestate’s GDP in 2013. chain, representedbythesumofitsexportsandimports, state’s competitiveness. Rio Grande do Sul’s foreign trade International insertion isadetermining factor forthe INTERNATIONALIZED ECONOMY from outsideBrazilthatinstalledthemselvesinthestate. actions were made real in the high number of undertakings international missions to 30 countries. The results of these In addition, in three years, the state participated in 63 companies andR$105million in businessdealsclosed. in Braziland19abroad,with715participations of RS Program, 29 international trade shows were supported Participation in International Trade Show Support 2011 to2013,aspartoftheRioGrandedoSulBusiness businesses abroad and attract foreign investments. From In this context, the state has soughtto promote its own exporter andfourthlargest importer. and increased 9.1%. The state was Brazil’s third largest and grew 44.3%,while imports were US$ 16.7billion During thisperiod, exports reached US$ 25.1billion Source: MinistryofDevelopment,IndustryandForeign Trade (MDIC), 2014. Others Argentina Total ofarea Belgium Paraguay United States Panama South KoreaSouth Netherlands Germany Uruguay China Main Destinations Main Exports Country/ By 25,093,698,478 1,641,621,935 1,897,532,290 2,522,376,128 2,897,175,367 4,550,981,715 8,624,099,435 647,648,035 565,635,840 715,954,437 484,837,585 545,835,711 (Jan/Dec) US$ F.O.B 2013 100.00 Part% 34.4 34.4 11.5 18.1 2.6 1.9 2.2 2.3 2.9 6.5 7.6 10 17,385,699,533 8,753,363,240 1,357,877,737 1,540,803,500 2,860,303,994 303,007,162 447,365,271 412,318,445 506,699,214 529,216,228 642,024,893 32,719,849 (Jan/Dec) US$ F.O.B 2012 100.00 Part% 50.3 16.5 1.7 2.6 2.4 2.9 3.0 7.8 8.9 3.7 0.2 2013/2012 8754 Var% 114 293 44 32 12 35 21 23 59 -1 8

099 HOW TO INVEST IN RIO GRANDE DO SUL 10 STATES Source: Ministryof Development,IndustryandForeign Trade (MDIC),2014. Wheat andwheat mixed with rye Exported Products Exported Total ofMain Total Exported Fresh, refrigerated orfrozen pork Rice automotive vehicles Passenger and other form in primary Ethylene polymers, soybean oilextraction Cakes andothersolidwaste from of egglaying birds refrigerated orfrozen, Edible meat andtripe, fresh, scrap tobacco tobacco; Non-manufactured Soybeans, includingtriturated floating orsubmersible orexplorationDrilling platforms, exported by RS exported Main products Main 16.108.081.263 25.093.698.478 2.270.109.006 4.226.178.875 4.772.731.870 1.202.313.640 1.276.971.806 337,330,146 370,740,773 379,480,598 455,693,827 816.530.722 (Jan/Dec) US$F.O.B 2013 100.00 Part% 16.8 19.0 64.2 1.3 1.5 1.5 1.8 3.3 4.8 5.1 9.0 14,470,317,130 20,183,065,238 1,144,536,323 2,526,481,448 7,873,641,969 138,618,613 881,942,032 507,550,507 664,578,270 435,409,351 251,627,690 45,930,927 Net Kg 17,385,699,533 1,153,891,902 1,276,474,799 2,191,302,280 1,975,539,621 8,892,277,779 486,379,933 392,345,430 497,435,217 170,950,855 747,957,742 (Jan/Dec) US$FOB 2012 0 Part% 100.00 12.6 11.4 51.1 2.8 2.3 2.9 1.0 4.3 6.6 7.3 0.0 10,924,674,027 15,470,145,622 1,877,694,207 1,055,270,837 2,625,254,378 3,587,491,509 482,608,638 682,836,340 444,206,726 149,970,420 19,340,972 Net Kg 0 2013/2012 166.6 113.9 -30.6 -23.7 Var% 81.1 44.3 -5.5 9.2 4.2 0.0 3.6 0.0 Several multinationalcampaniesarelocatedinRioGrandedoSul.Heresomeexamples: Lanxess Randon Artecola Marcopolo Amman Fujikura ElevatorHyundai Alstom Internation Magna Cosma CMPC Foton Dell Votorantim KMW General Motors Monsanto John Deere Gerdau Company Braskem South KoreaSouth Switzerland Country Germany Origin Origin Canadá France Japan China Brazil Brazil Brazil Brazil Brazil Brazil Brazil Chile USA USA USA USA USA Triunfo Caxias doSul Caxias doSul Caxias doSul Gravataí Montenegro LeopoldoSão Santo Antônio daPatrulha Guaíba Guaíba Eldorado doSul , doSul, Sapucaia Santa Maria, Viamão Montenegro, , , , , , Capão doLeão, Caxias doSul, , , Lajeado, Santa Maria Gravataí andNão-me-toque Porto Alegre, Leopoldo São Charqueadas, do Sul, Sapucaia Charqueadas, Location at RS Triunfo andMontenegro

11 HOW TO INVEST IN RIO GRANDE DO SUL 12 STATES Weatherford Terex Bunge ADM Cargil AGCO International Navistar Toyota Toyo Engineering HT Micron Manitowoc Takeda Mahindra Corp.Electric Mitsubishi Company Dupont Louis Dreyfus Honda Stihl South KoreaSouth Switzerland Country Origin Origin Germany France Japan Japan Japan Japan Japan India USA USA USA USA USA USA USA USA Location at RS Santa Cruz doSul, andEsteio Santa Rosa LeopoldoSão and Caxias doSul Grande Rio Grande Rio Pelotas, Grande Cruz Alta andRio Porto Alegre Canoas andSanta Rosa Ibirubá, Xangri-Lá Canoas Guaíba JosédoNorte São LeopoldoSão Passo Fundo Irmãos Dois Guaíba JerônimoSão doSul São LeopoldoSão PPG Industries Yara Elevadores Thyssenkrupp Danfoss Corporation Hyva Philip Morris GKN TDK Dana Johnson Controls Petrobras Gestamp Denso Pirelli BRF Noble Group SAP Company Netherlands Hong Kong Germany Denmark Country Germany England Norway Origin Origin Japan Japan Spain Brazil Brasil USA USA USA USA Italy Gravataí Porto Alegre Grande andRio among othercities Guaíba, Capão daCanoa, Caxias doSul, , Porto Alegre, Porto Alegre andCaxias doSul Charqueadas andPorto Alegre Santa Cruz doSul Charqueadas andPorto Alegre Gravataí Gravataí Canoas Passo Fundo, Canoas, Osório, Grande, Rio amongotherscities Gravataí Gravataí Gravataí among otherscities Lajeado, , Santa Rosa, Ijuí, Três deMaio, Passo Fundo São LeopoldoSão Location at RS

13 HOW TO INVEST IN RIO GRANDE DO SUL 14 STATES Boards ( Rio GrandedoSulisorganized into28RegionalDevelopment ORGANIZATION Conselhos Regionais de Desenvolvimento da Região Conselhos RegionaisdeDesenvolvimentodaRegião ORGANIZATION ANDDEVELOPMENT variables like employment, healthcare and education. variables likeemployment,healthcareandeducation. social homogeneity criteria, in addition to well adjusted that aregroupedaccordingtoeconomic,environmentaland Sul – Coredes), divided into nine Functional Planning Regions –Coredes),dividedintonineFunctionalPlanningRegions 02. 15 HOW TO INVEST IN RIO GRANDE DO SUL Created in 1994, the Coredes are spaces for discussion and South Regional Development Bank (BRDE – Banco Regional decision making regarding policies and actions aiming to de Desenvolvimento do Extremo Sul) and Banrisul. promote sustainable regional development and improved quality of life. In pursuit of Rio Grande do Sul’s economic development, the main pillar is its Industrial Policy, a set of instruments DEVELOPMENT with the goal of stimulating and strengthening sectors and companies, and attracting new undertakings to the Economic and social development play a central role in Rio state. One of the Industrial Policy’s main axes is its Grande do Sul’s priorities. This matter is dealt with the Rio Sectorial Policy, which prioritize 23 strategic sectors for Grande do Sul Development System (SDRS), led by the development. In addition to these axes, the Policy also Secretary of Development and Investment Promotion (SDPI) includes the Cooperative Economy Policy, Business and also composed by the Rio Grande do Sul Development Firm Policy, Transversal Instruments and Infrastructure Agency (AGDI) and the following banks: Badesul, Extreme for Development. STATES 16 extends across Uruguayand Argentina. The geneticquality Southern Fields,including the Pampaseco-system,which the world: the in else anywhere those unlike characteristics Rio GrandedoSul’s beefisproducedinanenvironment with Grande doSulStateBank)linesofcredit. financial and support policyfortheindustrythroughBanrisul (Rio promotion investment active an adopted one stageoftheproduction chain. Rio GrandedoSulhas and nownearly half ofitscitiesareinvolved in atleast has beeninvolvedintheactivity foroverhalfacentury, third largest intermsofproductionandexports. The state Rio Grande do Sul’s poultry farming industry is Brazil’s AGRIBUSINESS established inthestateeconomy. Ahead there is adescription of the main sectors already state andBrazil’s development. to growevenmore,becomingmorerelevantthe themselves inRioGrandedoSul,buthavethepotential production sectorsthathavealreadyconsolidated The state’s established economyincludesthose BEEF POULTRY FARMING through technology andknowledge sharing.Brazil is encourages, coordinatesand instrumentalizes the sector Grandense do Arroz Grandense around 65% ofthe Brazilian harvest. IRGA –Instituto Rio concentrates state the efficiency, farm of level high and Sul foroverhalfacentury. With atemperate climate The Rice industry has been present in Rio Grande do capital forbusinesses. lines of credit available from Banrisul to provide working with R$ 82 million in the Investor’s Room portfolio, and state has adoptedanactive investment promotion policy, The brands. recognized globally for offices regional with Brazil’s secondlargest producerand thirdbiggestexporter, do Sul’s pigindustryreceives international attention. It is production system and industrial expertise, Rio Grande With greatproductionpotential, atechnologically advanced distribution ofinseminationkits. promotes geneticimprovementinitiativeswithsubsidized In ordertoexpandthesector’s performance,thestate 185 slaughterhousesandapproximately14.5millionhead. for nearly 5% of Brazil’s production, with 327,000 ranches, breeds, isanotherstrikingdifference. The stateisresponsible of the livestock, predominantly composed of European RICE PORK ESTABLISHED ECONOMY

[Rio Grande do Sul Rice Institute] 03.

17 HOW TO INVEST IN RIO GRANDE DO SUL 18 STATES expanding irrigation and grain storage on farms through expanding irrigation andgrainstorage on farmsthrough recently, biofuelthrough soybeans. The state’s focusison and dairyproducts,poultry farming,pigfarmingandmore products arerawmaterials for othersegments,suchasmilk derivative products.Inaddition, thetwograinsandtheirsub harvests, vastterritorialdissemination andabroadrangeof for RioGrandedoSul’s agro-industry. They involve large Soybean andcornaretwoofthemostimportant crops Brazilian Riceproject. Investment Promotion Agency (Apex-Brasil), through the Rice abroad in collaboration with the Brazilian Trade and the consumer market,thestatepromotesimageofBrazilian expanding of way a As 2013/2014. and 2003/2004 increased productivity, whichgrewnearly30%between in thediffusion ofriceproductiontechnology has ledto Asian continent. The construction of a center of excellence number one in production and consumption outside the Credit: FernandoDias/Seapa Brazilian harvest. point of reference in Brazil. The state is responsible for around 65% of the Rio GrandedoSulhasawellestablishedricefarmingtraditionand it isa SOYBEAN ANDCORN Credit: FernandoDias/Seapa Rio GrandedoSulharvestedarecordwheatcropin2013 crops aretakingonincreasingimportanceinthestate’s A basicelementinthehumandiet,wheatandwinter of the environmental licensingprocess. andfacilitation conditions special with financing manufactures some of the country’s best quality milk and relies milk production.Brazil’s secondlargest producer, thestate do Sul’s Grande Rio define quality and quantity words The the Fundopem/Integrarprogram. privileged bracketinconcedingtaxincentivesaspartof recent insertionoftheIndustrialPolicy, itnowreliesona the With biennial. 2013/2014 the during million 257.1 the state,withannouncedinvestmentstoorderofR$ country’s biggestproducer. The sectorisontherisein 58% ofBrazil’s total productionandmakingitthe saw thelargest wheatharvestinhistory, amountingto growing farm productivity, in 2013, Rio Grande do Sul agro-industry. With itsgoodtemperateclimateand WHEAT ANDWINTERCROPS MILK ANDDAIRY PRODUCTS Credit: PedroRevillion/Palácio Piratini Brazilian production basedinRioGrandedoSul Wine productionisoneofthestate’s mostwellestablishedactivities,with90%of responsible forover70%ofthisamount. 105.6 million,withemphasisoncooperatives,which were Grande doSulreceivednewinvestmentstotheorderofR$ participating intradeshowsEuropeand Asia. Recently, Rio the stateistopromoteGauchowine’s imageinternationally, of focus The qualification. ongoing drives field, the in point – InstitutoBrasileirodo Vinho), aninternationalreference market foritsgrapejuice. The Brazilian Wine Institute(Ibravin quality of its fine wine and sparkling wine and expansion of the to traditionaltablewine,thestateisattractingattentiondue Rio GrandedoSulproduces90%of Brazilian wine. In addition to R$411.8 millionbetween2011 and 2014. do Leite)werecreated.Newinvestmentsintheareaaddedup the RioGrandedoSulMilkInstitute(IGL –InstitutoGaúcho Milk ProductionChainDevelopmentFund(Fundoleite)and Brazilian states. In order to ensure the sector’s organization, the the state’s cities, with 60% of this production destined to other activity, suchasNewZealand. The sectorispresentin90%of on environmentalconditionsidenticaltoworldleadersinthe VITINICULTURE automobiles manufactured in thecountry. Rio Grande do Sul is fromRioGrandedoSul,beingresponsiblefor6.8%ofthe world market.Over10%oftheindustry’s Brazilianworkforce The Brazilianautomotivesectorholdsarelevantpositioninthe AUTOMOTIVE ANDROADEQUIPMENT items, stimulating sectordevelopment. [RS MoreGrain]promotedemand forirrigationandstorage Mais Renda installed inRioGrandedoSul. Also, programslike machinery andequipment produced bycompaniesalready incentives forthenewundertakings touserawmaterials, in investmentsstarting2011. Inaddition,thestateprovides like Stihl and Stara have expanded, tallying over R$ 1.3 billion companies likethe American Manitowoc,andlocalcompanies total in2013. As proofofthisstrength, thestatehasattracted participation isevengreater, reaching43.7%ofthenational goods production.Intheagriculturalimplementssegment, its Brazil, responsibleforapproximately13%ofBraziliancapital Rio GrandedoSulisoneofthesector’s protagonistsin AGRICULTURAL IMPLEMENTS EQUIPMENT, INDUSTRIALAND CAPITAL GOODS–MACHINERY, up toapplicationsofoverR$1.5billion. Randon andMarcopolohavebeenannounced,togetheradding Yunlihong, and investments by Rio Grandedo Sul companies investments likeChinesetruckmakersFotonandShiyan Brazilian automotiveregime–Inovar-Auto –thestateattracted the nation’s production ofbuschassis.Startingwiththenew 63% ofthenation’s production ofbusbodiesand12% market, with50%ofmarketshare,andareresponsiblefor companies ledthewayinnationalhighwayimplements [More Water, MoreIncome]and RS MaisGrãos Mais Água ,

19 HOW TO INVEST IN RIO GRANDE DO SUL equipment, has great opportunities to intensify its production chains, as well as attract new companies. The state has focused on carrying out international missions to attract investments, as well as mapping of local companies, possible partners in joint ventures and business rounds.

PETROCHEMICAL INDUSTRY, PLASTIC MATERIAL AND RUBBER PRODUCTS

With active participation by Rio Grande do Sul, this sector Rio Grande do Sul is a protagonist in the machinery, equipment and agricultural and industrial implement sector is prosperous in Brazil. With R$ 2.5 billion in investments Credit: Pedro Revillion/Palácio Piratini foreseen from now until 2020, the state is home to Brazil’s most modern technology and innovation center, in the WOOD, CELLULOSE AND FURNITURE city of Triunfo. Among the main investments, there is the world’s first green ethylene plant, operated by Braskem, Rio Grande do Sul’s cellulose and Furniture industry is worth R$ 500 million, as well as investments by Innova, responsible for 15% of Brazilian production. It is responsible Lanxess and Synthos. In the plastic and rubber segment, for 4% of the state’s GDP and grosses over R$ 8 billion per over thirty companies presented projects to install or year. With a striking social aspect, it directly employs nearly expand operations from 2011 to 2014, for a total of 60,000 people, a number that is going to grow even more with approximately R$ 350 million. the finalization of CMPC’s expansion project, which will invest R$ 5 billion, representing the largest private investment in Rio Grande do Sul’s history. For its part, the furniture segment, SOFTWARE which has its largest Brazilian hub in the state, is supported by the Local Production Arrangements Project (LPAs), Rio Grande do Sul’s software industry relies on highly which provides resources for projects that benefit companies skilled professionals and 11 information technology (IT) belonging to the arrangement. hubs. There are over 150 undergraduate programs offered by internationally recognized institutions and 35,000 EQUIPMENT FOR THE OIL & professionals in the state. With strong global growth, the segment is promising. The state promotes sector development GAS INDUSTRY through the LPA project, which supports arrangements in In Brazil, the Oil & Gas sector forecasts investments superior the Highlands and Central regions. In addition, Badesul has to US$ 250 billion over the next five years. Rio Grande do invested in the CRP Fund and supports the Criatec II Fund, Sul, which already has skilled labor and companies to supply which offer capital injections for innovative companies. STATES 20 addition, local brands rely on incentives to supply products to addition, localbrandsrelyonincentivestosupplyproducts LPA tofurtherincreasethesector’s competitiveness.In the statesupports Automation andControlElectronics In ordertomakethemostofsynergy betweenthecompanies, segments generateover8,000directand20,000indirectjobs. 100% ofthedemandforcertainproducts. Altogether, thetwo telecommunications segments,thestate’s companiesmeet and automation the In Sul. do Grande Rio in significant is The automation, telecommunications and electronics sector TELECOMMUNICATIONS ELECTRONICS, AUTOMATION AND which offer capitalinjectionsforinnovativecompanies. invested intheCRP Fundandsupportsthe CriatecIIFund, the HighlandsandCentralregions.Inaddition,Badesulhas through theLPA project,whichsupportsarrangementsin segment ispromising. The statepromotessectordevelopment The footwear sector is preeminent for Rio Grande do Sul’s FOOTWEAR ANDARTIFACTS April 2014,achievednearlyR$45billion. new investmentsinRioGrandedoSul,which,from2011 to footwear nationwide. trade shows forthesector, encouraging sales ofthestate’s and small businesses issubsidized at the large Brazilian from eastern Asia. Inaddition, the participation of micro through thetaxroute,incontrastwithproductsimported its participation istomakedomestic production feasible activities on higher value added products. The focusof in thestate,segmentisincreasinglyconcentrating its people and generates 6% ofthelocal GDP. Well established value addedproducts. The activity employs nearly125,000 three pairs offootwearinBrazil, and stands out withhigh economy. The state is responsible for manufacturing one in

21 HOW TO INVEST IN RIO GRANDE DO SUL 22 STATES rae te au ad uía aa hb a a a to way a as hubs naval Guaíba and Jacuí the created Taking advantage offavorablegeography, thestate and drillingrigs,dividedamong fourshipyards. US$ 7.9 billion in Petrobras commissions for platforms, poles deposits inthemaritimeenvironment.Currently, thestatehas for whichinvestmentswillbeleveragedbynewpetroleum Brazil. Itsconsolidationisduetonavalsegmentdevelopment, Rio GrandedoSulisaprotagonistforoceanindustrygrowth in Privileged by its geographic conditions and diversified economy, OCEAN INDUSTRY ANDNAVAL POLE sectors willbedetailedahead. these Industry.All Creative Advanced and Medicine; and Helthcare – Semiconductors; Biofuel Biodiesel; and Power; WindBioethanol Depollution; and Recycling Pole; Naval and Industry Ocean are: sectors main These in technologicalupdates. some sortofdeficit inBrazil, either inthetrade balance or promising prospects onanational level, but that suffer naval and windpowergeneration industries and thosewith to Brazil’s broaderdevelopment, such asthecasewith yet to consolidate themselves in the state. These are linked The New Economy is made up ofthosesectorsthat have decentralize the sector. Credit: BiankaNieckel/AGDI Industry growthinBrazil. Privileged bygeographicconditions,RioGrandedoSulisaprotagonistforOcean (International Environmental Technology(International TradeFair). of the largest Brazilian trade shows for the sector, FIEMA and internationalinvestors. In addition,thestatehostsone will make possible to identifybusiness opportunities, partners waste production and providing service companies, andthis industry. There are mapping studies in progress, both to survey advanced inwastesortinganddevelopmentoftherecycling aware population,haspassedpioneeringlegislationand itis remediation. Ahead ofotherstates, ithasanenvironmentally Rio GrandedoSulisapioneerinrecycling and environmental RECYCLING ANDDEPOLLUTION NEW ECONOMY 04. a production leader, meeting a quarterofthenation’s a positiveimpactonthe localeconomy. The state is In RioGrandedoSul’s thebiodieselsegment is having BIODIESEL BIOFUEL –BIOETHANOL AND Credit: PedroRevillion/PalácioPiratini sector’s productionchaintoinstallthemselvesinthestate of windpowergenerationcreatesopportunitiesforcompaniesinthe Growth companies like Alstom andImpsa. in nameplatecapacity and announcedinvestmentsby chain. Concrete results canbeseeninthelarge increase both on making new parksfeasible and creating a supplier under the MW. The statebringsthesector’s mainactorstogether another 1477.9 MW will be installed, adding up to 2005.9 Osório, isamongthelargest inLatin America. By 2018, nameplate capacity of 528MW. Oneofthem,located in March 2014, there were 21 wind generation farms, with a representing 11% ofBrazil’s windpowerpotential. As of Rio GrandedoSul’s windisfrequent and intense, WIND POWER RS Eólica (RS Wind) program,whichfocuses has yet to meet 1% ofthe state’s demand. As for ethanol, a greatfuture,consideringthatproductioninrecentyears from B5toB7.Foritspart,bioethanolisasegmentwith the increasedmandatorybioethanolpercentageindiesel with thepurposeofmeetingdemand,whichgrewafter demand. Startingin2011, fournewplantswereinaugurated are 29manufacturers whichgrossed approximately than 20%ayear inBrazil.InRioGrande doSul,there the Pharmaceuticalssegment, whichisgrowingmore the state,thatemployover 1000people. There isalso 13% a year inBrazil,witheighteen manufacturerslocatedin grows one first The segment. Pharmaceutical and LaboratoryEquipmentGoods(EMHO) and Hospital Dental, Medical, the segments: two includes The Advanced Healthcare and Medicine sector MEDICINE ADVANCED HEALTHCARE AND research andoffers servicestocompanies. Semiconductors Institute(ITTthe Unisinos Chip), whichinvestsin of consolidation from benefited also has with finally the inaugurationofanewfactoryin2013. The industry and scale, reduced a on initially 2011, in marked inrecentyearsbyHT Micronstartingproduction a commercialscaleinLatin America. The sectorwas on wafers to produce company first the be will Ceitec in encapsulationanddesign.Installedthestate, Rio Grande do Sul has made significant progress, mainly SEMICONDUCTORS do Sul’s climate conditions. Rio Grande to geared specifically species plant Petrobras madeR$5.5millionavailabletoresearchnew

23 HOW TO INVEST IN RIO GRANDE DO SUL 24 STATES Credit: CamilaDomingues/PalácioPiratini Grande doSul The Advanced Healthcare and Medicine sector is growingin Brazil and Rio a national hub forthecreative industry. Inthestate, the Cultural diversityandtraditionsmake RioGrandedoSul CREATIVE INDUSTRY Production DevelopmentPartnerships(PDPs). opportunities for state companies through signature of Laboratory (LAFERGS)opensanewrangeof state. Inaddition,reactivationoftheRSPharmaceutical is offered tocompaniesthatmakeinvestmentsinthe US$ 500millionin2011. Differential taxtreatment year, benefiting nine projects. Finally, in 2013, the state the 2013, every in Finally, thesector projects. nine benefiting for year, grants research specific launched the sector’s organization. In addition, since 2012ithas and PreciousStoneHub arrangements, strengthening supports the Audiovisual, Fashion and Gemstone, Jewelry for formallabor. Through theLPA Project,thestate of workersincreativity is aheadof the national average income bonus: a with area, creative entire country’s the sector generates R$ 5.2billion annually, a5.6%slice of Industrial Policy, otherproductionsectorsarereceivingspecial In additiontothestrategicsectorsalreadyincludedinstate’s OTHER PRODUCTIONSECTORS gathers alltheinitiativesfocusedonsector. launched the opportunities forthefuture. these compounds,thesector isseenasoneofthegreat chemicals originating from coal. Given thedemand for these reservesintowealth, basedontheelaboration of aim to prospect investors with technology to transform generating capacity. Inthisway, initiatives by the state for thecarbochemical industry, sinceithasalowheat area. The qualityofthestate’s coalmakesitveryattractive open-air, easilymineable deposit occupies a 45 xkm Rio GrandedoSul.IntheCandiota region alone, the vast 89% ofBrazil’s coal deposits are located in the state of expertise inthesectorhasbeenconducted. of microsatellites,asearchforinternationalpartnerswith competencies existinginRioGrandedoSulfortheproduction sector domestically. Starting off by mapping the technological in theindustrialand technological baseof the aerospace state. The hubaimstoensure the state’s increasingpresence with the confidence of the competencies already existing in the Systems duringamissiontoIsraelin April 2013,andemerged of aletterintentbetweenthestategovernmentand AEL The RioGrandedoSul Aerospace Hubbeganwiththesignature DEFENSEANDAEROSPACE They aredetailedahead. attention duetotheemergence ofnewgrowthopportunities. CARBOCHEMISTRY RS Criativo (Creative RS) program,which telephone at+55(51)3288-1135. Room, viathewww.saladoinvestidor.rs.gov.br websiteor interested in investing in the state can access the Investors entrepreneur manager. Any specific a by monitored then project in question are brought together, and the project is All of the state’s secretaries and agencies involved in the licensing, infrastructure and industrial areas, for example. environmental financing, incentives, tax like subjects on Created by decree in 2011, thechannel provides instruction relations between entrepreneurs and government agencies. online servicethataimstoprofessionalizeandfacilitate The InvestorsRoomisamodelofbothpresence-basedand INVESTORS ROOM network ofincentivestobusinessundertakingsallsizes. One ofthemainadvantagesRioGrandedoSulisitslarge R$ 44.6Bi 59,200 420 is what that meansininvestments direct jobsshould becreateddirect belongtoprojects theActive orCompleted Projects Portfolio INVESTORS ROOM SUPPORT FORINVESTMENTS SUPPORT important: Among othersconditionsforconcession,thosearemost between thestategovernmentandprivateinitiative. sizes, including cooperatives, and it is a partnership incentive instrumentthatcontemplatesprojectsofall ( Rio GrandedoSul’s newOperationBusinessFund NEW FUNDOPEM/RS Fundo Operação Empresa 149 12,000 R$ 4Bi 149 environmental obligations. with Badesul,BanrisulandBRDEothertax Being ingoodstandingwithcontractualtransactions The realizationoffixedinvestments;and The creationofjobsandsalarymass; billion were invested direct jobsweredirect created inthestate since 2011 supported projects FUNDOPEM – Fundopem/RS) is a tax tax a is Fundopem/RS) – 05.

25 HOW TO INVEST IN RIO GRANDE DO SUL 26 STATES FINANCING SYSTEM RIO GRANDEDOSUL 1000 oratthewebsitewww.sdpi.rs.gov.br. program. To learnmore,justcontactSDPIat+55(51)3288- inferior tothestateaverageforthatindicatorcanaccess located inregionswithsocioeconomicdevelopmentindicators and possibleenvironmentalimpact. Those undertakings the projectislocated,jobscreatedandincreaseinsalarymass, where city the include: criterias the and undertaking, the with respective charges. The percentage is determined in accordance portion of the financing to be repaid, including the principal and It isadeductionrangingfrom10%to90%,leviedoneach Program (Integrar/RS) is an incentive in addition to Fundopem. Rio GrandedoSul’s IndustrialDevelopmentHarmonization INTEGRAR/RS million to this end, encouraging company development. million tothis end,encouragingcompany development. projects. As agroup,thethreebanksrelyontotal ofR$240 studies which makes resources available to finance innovative the BrazilianInnovation Agency (FINEP),forprojects and the Inovacred line in collaboration withthe Financing of in thestate,56%morethan2012. The systemoperates via BNDES. Altogether, BNDESinvested R$15.49billion the threebanksinjectedR$3billioninstate’s economy to setupparticipationfundsandoffer otherservices.In2013, sources andprovisionofassurances,inadditiontoworking Desenvolvimento EconômicoeSocial–BNDES),or other from theBrazilianDevelopmentBank(BancoNacional de available withtheuseofownresources,thosecoming inducers forthestate. The initiativemakeslinesofcredit Banrisul, Badesul andBRDEbanks,whichactasdevelopment includes system financing Sul’s do Grande Rio

ARRANGEMENTS (LPA LOCAL PRODUCTION local sustainable development and income appropriation. local sustainable development and income appropriation. of theEconomyCooperationpolicytowardspromoting The LPA Projectisoneofthestrategicprojectsthatarepart email [email protected]. access theprojectonwww.agdi.rs.gov.br or bysendingan small andmedium-sizedfrom alloverRioGrandedoSul,can Manufacturers andagro-industrial companies,preferably have alreadybeenimplemented, serving2296companies. and technologicalinstitutions. 17groupsin23regions Innovation ExtensionGroupsincollaborationwithuniversities do SulDevelopment Agency (AGDI)setsupProductionand planning andgivessupportinformulatingprojects.RioGrande in businesses in the industrial sector. The initiative advises competitiveness and efficiency promote to advisement direct increase production,employmentandincome,providing The ProductionandInnovationExtensionProjectaims to EXTENSION PROJECT at www.agdi.rs.gov.br [email protected]. 15,000 undertakingsand285,000workers.Moreinformation managers andtechnicalassistanceofthoseLPAs, whichcover were supported,andtrainingcoursescarriedoutfor55 2013, governanceof20LPAs from19regionsinthestate to maintainthegovernanceactivities.Between2011 and managing entity. Byagreement,resourcesarepassedon The projectaimstostrengthenlocalgovernancethrougha with cooperativeties. of companies, producers andinstitutionsin a single territory agglomerations as defined be can arrangements These

S ) as beneficiaries universities and other entities that have that research unitsandscientists installedinthestate. entities other and universities beneficiaries as incentive policies,fundsor speciallinesofcredit,having tax and financial institute to authorization and incubators; and parks technological and scientific consolidating and implanting for support innovation; involving companies micro- small-scale as configured state the in suppliers for foreseen by the law are differential and simplified treatment training andcompetitiveness. Among themeasures concerned withthepursuitoftechnologicalautonomy, which aimstopromotethecreationofstrategicpartnerships this istheInnovation Act (Actno.13196,July13,2009), science andtechnology, andoneofthemainexamples The state invests in specific policies to promote innovation, INNOVATION ACT sector andpromotethestate’s economy. develops avarietyofprojectsandinitiativestostrengthenthe to installnewcompanies.Inaddition,RioGrandedoSulalso technological parks,withinvestmentsofoverR$50million end oftheyearintendstotripleitsnumberestablished its investmentsintechnologybyover420%,andthe is apointofreference.Inrecentyears,thestatehasincreased When thesubjectisinnovation,RioGrandedoSul’s policy INNOVATION AND TECHNOLOGY Network of Business Incubatorsand Technological Business Support Service and the Rio Grande do Sul’s and Technology, theBrazilianMicroandSmall Technological Development,theFoundationofScience between theSecretary of Science,Innovationand their creations. The program is run through a partnership guidance towardsdevelopmentandimplementation of opportunity forinventorsandentrepreneurstoobtain Rio GrandedoSulsociety. The initiativeoffers the and innovationprojectsthatmayhaveanimpact on a publicspaceforpresentingscience,technology The InnovatetoUndertakeprogramseekspromote (INOVAR PARA EMPREENDER) INNOVATE TOUNDERTAKE by thestate,providedtheirfruitionisnotconcomitant. instituted incentives financing and tax other in included from theprogrammaysimultaneously request tobe innovation activities. The companiesreceiving incentive existing ones,inadditiontomarketingandorganizational processes, butalsotheimprovementofpreviously the creation of newproducts(goodsand services) and by theInnovation Act andprovidesincentives towards A tax incentive program, Pro-innovation is supported PRO-INNOVATION

(PRÓ-INOVAÇÃO)

06.

27 HOW TO INVEST IN RIO GRANDE DO SUL STATES 28 STATES jobs. Since2011, 22projectshavebeensupported. The three the 264companiesinstalledinthemhavecreated14,234direct three consolidatedandanothertwelvetobe – and – parks fifteen to home innovation. is and state Altogether,the business condominiumsorincubatorsfocusedondevelopment Technological parksareenvironments thatcaneitherconstitute TECHNOLOGICAL PARKS R$ 80millionbytheendof2014. Development, RS Techno-Hub hasaforeseenbudgetof and IRBD–InternationalBankforReconstruction BNDES Proredes, from financing Through economy. vocation andcontemplatesdifferent sectorsofthe The expansion of the parksrespectseachregion’s promotion ofinnovationandentrepreneurialculture. the creationofanetworktechnologicalparksand technological development,havingamongitsobjectives The RS Techno-Hub programisactiveinregional RS TECHNO-HUB [email protected]. presented. Moreinformationcanbeobtainedviaemail Parks, whichtogetherselecttheprojectstobe

(RS TECNÓPOLE) The Technological Innovation Hubs SupportProgram TECHNOLOGY HUBS in SãoLeopoldo,and Valetec inCampoBom. TecnosinosPorto Alegre, Tecnopucin are: parks consolidated of 90projectssupportedsince2011. hubs in456cities distributed across 24regions,foratotal appropriate to each of the state’s regions. There are 26 with the production sector, aiming to develop technology was created to integrate universities and research centers Credit: CamilaDomingues/PalácioPiratini Research at University of Passo Fundo’s Plateau Scientific and Technological Park BR-101, which connectsRioGrande do Sultoeleven the mainhighwayspassing throughthestateareHighway Uruguay isoneofthestate’s mainadvantages. Among access totheneighboring countriesof Argentina and by thismode. There are153,960kmof highways.Easy over 80%ofpassengersandcargo loadsaretransported The highwaysystemispredominantinRioGrandedo Sul, railways andwaterways. are themostfrequentlyusedmodeoftransport,followed by waterways, railways,pipelinesandairports. The highways The state’s transportation system is diverse: there are highways, LOGISTICS proposing improvements. Sul, focusedondiagnosingthestate’s currentsituationand towards developmentofproductionactivityinRioGrandedo is responsible,amongothersubjects,fortheinfrastructureplan theme throughtheBoardofInfrastructureandEnergy, which and Logistics(SEINFRA).Foritspart, AGDI approaches the given prioritytreatmentbytheSecretaryofInfrastructure reason isapriorityforRioGrandedoSul. These axesare towards ensuringindustrialcompetitiveness,andforthis Investing inlogistics,energy andcommunicationisessential HIGHWAYS Claudio Fachel/Palácio Piratini between Porto Alegre andCanoas BR-116 isone ofBrazil’s mainhighways,passing through tenstates.Inthephoto,astretch of vehicles,8%thenationaltotal. with Argentina.Brazil’s has state The largestfourth fleet reaches the city of São Borja, a RS city on the border BR-285, whichstartsinthestateofSantaCatarinaand Highway and Argentina; and Uruguay Brazil, between region and reaches Barra do Quaraí on the Triple Frontier BR-472, whichcutsthroughthestate’s far Western northern coast westward, arriving in Argentina; Highway Highway BR-290,whichcrossesthestatefrom Uruguay; with border Brazilian the at Jaguarão reaching before states Brazilian ten through passing Ceará, from way the all comes BR-116,which Highway states; other INFRASTRUCTURE 07.

29 HOW TO INVEST IN RIO GRANDE DO SUL 30 STATES unloaded and 8,269,144 tons being loaded in 2013 alone. unloaded and8,269,144tonsbeingloadedin2013alone. tons. Soybeansarethemainproduct,with673,576tonsbeing containers passedthroughRioGrande,foratotalof33,248,729 one ofLatin America’s moststrategicports.In2013,626,382 of docks. Access viahighway, railwayandwaterwaymakesit Port of Rio Grande has a total area of 80,000 m² and 850 m Consolidated asthemainportforSouthernCone, Port ofRioGrande water basedtransportationaddeduptoR$28.6million. transported. Between2011 and2013,investmentsin derivatives, soybeanmealandoil,paperpulpare Rio Grande,wheremainlypetrochemical,petroleum Rio GrandeandPelotas. The mainrouteisPorto Alegre- different regions,themain ones beinginPorto Alegre, watershed. Inaddition,thestatereliesonportsin one ofthemaincompetitiveadvantagesstate’s is Uruguay with connection The Coastal. and Guaíba Coastal. andThe mainnavigableriversareconcentratedin Guaíba Uruguay, watersheds: three into divided km. Rivers,lakesandlagoonswiththispurposeare Brazilian statewiththemostnavigablewaterways,758 Proportional toitsarea,RioGrandedoSulisthe WATERWAYS

Credit: Pós Produção/Divulgação Produção/Divulgação SUPRG Pós Credit: countries. located betweenSouthernCone The Port of Rio Grande is strategically Airport are in the cities of , Passo Fundo,Rio ones besidesPorto Alegre’s SalgadoFilhoInternational Rio Grande do Sul has airports in different cities. The main from downtown. location onPorto Alegre’s NorthSide,just10km away to 362tons.OneofSalgado Filho’s mainadvantages isits allow takeoff weightlimitstoincrease fromthecurrent333 expanded, anduntil2015, therunwayenlargement will Porto Alegre’s Airport is constantly being modernized and exported and900tonsofcargo importedeverymonth. m² ofareaandiscapablehandlingthe1500tonscargo departure jetbridges. The Air Cargo Terminal features9500 aircrafts. There are32check-incountersandtenarrival passenger terminalcansimultaneouslyhandleupto28 large With nearly 40,000 m² of developed area and four floors, the handled 30,448tonsofcargo. aircraft operations,carried8,261,355passengers and Operational Statistics Yearbook, SalgadoFilhosaw96,693 Guarulhos inSãoPaulo.In2012,accordingtoInfraero’s passengers, justbehindGaleãoinRiodeJaneiroand America. Itisthethirdbusiestintermsofinternational North and Central South, and Europe to flights direct with Salgado Filho Airport isoneofBrazil’s mostimportant, Filho Porto Alegre International Airport —Salgado region, withacapacityfor40millionpassengersperyear. new international airport in the Porto Alegre Metropolitan Grande andPelotas. Also foreseen is the construction of a AIRPORTS terminal carried293,000passengers. and large aircraft, such asBoeing737-700s.In2012,the its 2000 m long runway is able to operate with medium and andCuritiba, Paulo São to flights has terminal The airport serves over34cities in the state’s highland region. Located in CaxiasdoSul,oneofthestate’s main cities, the Caxias doSulRegional Airport —HugoCantergiani stand outduetotheir concentration of large quantities lines, usedexclusivelyforcargoterminals transport.Four The state has a 3259kmnetworkofrailways and branch fertilizer andsoybeans. and . The main products transported are fuel, Alta Cruz Fundo, Passo Region, Metropolitan cargo: of RAILROADS

31 HOW TO INVEST IN RIO GRANDE DO SUL 32 STATES concessionaires and15ruralelectrificationcooperatives. small five also are There (RGE). S.A. Energia Grande Rio Sul), CompanhiaEstadualdeEnergia Elétrica(CEEE)and concessionaires: Distribuidora Gaúcha de Energia S.A. (AES Electricity distributionisachievedmainlythroughthreelarge 1,363,439 m³,beingBrazil’s largest producer. of 606,000,000L andannualnameplatecapacitytoproduce has sixplantstomanufacturebiodiesel,withannualproduction biofuel, suchasbiodiesel,ethanolandbiogas. The statealready Rio GrandedoSulhasalsobeeninvestingindeveloping and alternativeenergy sources such aswindandsmallthermal. thermoelectric plantspoweredbyfueloil,naturalgasandcoal, The state’s energy supplycomesfromhydroelectricdams, construction andanother39thathavebeenrecentlyapproved. generation capacity, comingfrom23undertakingsunder years 2,412,601kW arescheduledtobeaddedthestate’s Brazilian ElectricityRegulatory Agency (ANEEL).Incoming with 9,197,636kW ofpowercapacity, accordingtothe Rio GrandedoSulhasover200undertakingsinoperation, ENERGY which represents28,000,000,000tons.Brazil’s largest coal country. Nearly 90%ofBrazil’s coalreservesareinthestate, of thermoelectricplants–fourthe 13 plantsinstalled in the Rio GrandedoSulistheBrazilianstatewithlargest number with theregions withthegreatestwindpotential. electricity distribution in the state, and ease of connection In addition, there isgoodinfrastructureforpower linesand of 100meters. height a at power potentialinthestateisestimatedat115 GW on 89farms,addinguptoinvestmentsofR$8.4billion. Wind By 2018,thestatewillhavenameplatecapacityof2005.9 MW energy since2006,andthereispotentialtogrowevenmore. Grande do Sul has been investing strongly in this source of the NorthernCoast.Instepwithrestofcountry, Rio –, andLatin America’s largest windfarmisfound inOsório,on power generation–itconcentrates11% ofthenation’s potential Rio GrandedoSulhasBrazil’s greatestpotentialforwind carbochemical industry. priority istostudythepotentialofusingstate’s coalforthe in additiontodirectburninggenerateelectricity. Another aims tomakethebestuseofcoal,researchingalternativeuses, The state seeks to promote development of technology that Charqueadas (72,000kW)andSãoJerônimo(20,000kW). and CandiotaIII(350,000kW). The othertwoplantsarein The cityishometoPresidenteMédiciplant(446,000kW) deposit isinthecityofCandiota,38%nationaltotal. COAL WIND FARMS the stateisbettingondigitalinclusionandexpansion of In ordertoensureadvancement oftechnologydevelopment, strengthening andexpandingRioGrandedoSul’s industry. Investment in communications is another pillar towards COMMUNICATION chain, suchaswindturbinesandconverters. itself asanopportunityforintroducingfactoriestofeedthis the state’s maincompetitive advantages,andalsopresents and servicespecializinginthewindpowerchainisoneof The factofhavingmanufacturersandsuppliersequipment Southwestern Region. power transmissionsystemsoftheSouthernand It alsopresentssolidinterconnectionbetweenthe Credit: ClaudioFachel/PalácioPiratini Latin America’s largest windfarminoperation isinOsório with 16,307,592 active mobile telephone lines and households). Inaddition, the state ended February 2014 subscribers and36.67%density(accesstoeach 100 broadband fixed million 1.41 has state the (ANATEL), April 2014 bythe National Telecommunications Agency broadband Internet. According to a survey published in of computerlanguages. donated equipment,inadditiontobeingtrainedthe use people fromlowincomecommunitieslearntorefurbish Center inthecityof Viamão (CRC Viamão), young in RioGrandedoSul. At theComputerReconditioning reusing computersandexpandingpublicbroadbandaccess The digitalinclusionprogramisbasedonapolicy of to society. improving andaddingtopublicinformationservice services electronicallyandviamobilecommunications, speed publicnetworkcapableofexpandinggovernment of RioGrandedoSul. The ideaistocreateahigh- citizenship andtheeconomicsocialdevelopment society throughtheInternet,promotingpracticeof This initiativeaimstointegratethegovernmentand Brazil’s highestpercentages. teledensity of 145.64accessesper100inhabitants, one of PROGRAM RIO GRANDEDOSUL’S DIGITAL INCLUSION

33 HOW TO INVEST IN RIO GRANDE DO SUL 34 STATES Rio GrandedoSulhas oneofBrazil’s highestliteracyrates. billion ineducation. ranking inthetopten.In2013alone,stateinvestedR$7.1 concluded elementary, secondary or higher education, always of thehighestpercentagesadultpopulationthathas ahead of the national average of 9.54. The state also has one The averageexpectancyforformaleducationis10years, state hasoneofBrazil’s lowestilliteracyrates,only4.5%. Brazilian InstituteofGeographyandStatistics(IBGE),the the highqualityofstate’s laborforce. According tothe on reflects which sector, the in rates best Brazil’s of some Rio GrandedoSulisareferencepointineducation,with EDUCATION Credit: CamilaDomingues/Palácio Piratini EDUCATION, SAFETYANDHEALTHCARE needs fortraining, articulate and coordinate all the The roleofthestateisto, afteridentifying each region’s and servants. as welleducatingstate public professors qualification, technological and technical professional, The initiatives aim to promote knowledge, research, and new developmentagenda. of regionaldemandsforprofessionalizationwiththestate’s workers institutionsinRioGrandedoSul,integratingservice network betweengovernment,university, businessand Educação Profissionalizante Technical and Technological Education( In addition,theRioGrandedoSulPactforProfessional, Tecnologia daEducaçãoProfissional) and Technology StateFair idea, itpromotestheProfessionalEducationScience state andcity’s public schoolnetwork. With thesame which disclosesresearchworkdoneinclassroomsofthe Show promotes initiativesliketheProfessionalEducationSchool the RioGrandedoSulSecretariatofEducation(SEDUC) Among the initiatives that seek to foster and train the sector, adding upto over 2000 courses in a variety of institutions. 400 establishments concerned with professionaleducation, The statehasbroadtechnicaleducationcoverage,withover PROFESSIONAL TRAINING Msr ds soa d Euaã Profissional) Educação de Escolas das (Mostra ) aims to organize a collaborative ) aimstoorganize acollaborative (Feira Estadual de Ciência e (Feira EstadualdeCiênciae . Pacto Gaúcho pela Pacto Gaúchopela 08. , innovation. Of these, ten are public – nine federal, including institutions, sources ofresearch and technological Altogether, RioGrande doSulhas125highereducation Federal UniversityofHealth Sciences–UFCSPA). de Ciências da SaúdedePorto Alegre (Porto Alegre Federal Universidade the and UFRGS best: country’sten institution quality, thestate has two universities among the Ministry ofEducation’s indicator of highereducation In the UNISINOS). General Course Rating, the Brazilian do RiodosSinos(UniversityoftheRiver Valley – Rio GrandedoSul Pelotas (UFPel),andtheprivate Universidade Católica of of Rio Grande do Sul (UFRGS), Santa Maria (UFSM), education institutions, such as the federal universities Rio GrandedoSulhassomeofthecountry’s besthigher which represents150%growthincomparisonwith2012. increased fromR$3.6millionto9ayear, In 2013,fundingtoprofessionaleducationschools WestphalenSchool. Frederico Agricultural (IF ),theRioGrandedoSulInstitute, and Federal Institute (IFRS),theFarroupilha Federal Institute Service for Industrial Trainning), the Rio Grande doSul (National Service for Trade Trainning), SENAI (National by SEDUCin the state, the courses are taught at SENAC number of students enrolled in the program. Coordinated courses. RioGrandedoSulisthe state with the largest qualification of supply the internalize and expand to aims Employment (PRONATEC), by the federal government, National Programfor Access to Technical Education and the initiative, Another society. the benefit that programs HIGHER EDUCATION

(PUCRS) and Universidadedo (PUCRS) Vale (Rio GrandedoSulStateUniversity–UERGS). the state,Universidade Estadual do RioGrandeSul institutes, universities and foundations,onebelongsto 318 generalhospitals and17specialized hospitals. healthcare establishments, including763healthclinics, lowest infantmortalityrate, RioGrandedoSulhas21,230 With Brazil’s third highest life expectancy and second HEALTH increase ininvestmentssafety. rates ofcriminality are goingdownasaresultofthis homicide rate in the country and every year, this and other for a total of R$ 2.5 billion. The state has the fourth lowest million beingaddedtotheamountfromprevious year, by 27.8%overthe2007-2010average, with R$ 348.1 budget in safety. In2013,thestate increased the amount Yearbook, in2012,RioGrandedoSulinvested5.5%ofits According todata from theBrazilian Public Safety SAFETY and StrategicStudies). Gestão eEstudosEstratégicos(CenterforManagement Federal District,accordingtoastudybyCentrode nationwide, behindonlyRiodeJaneiro,SãoPauloand the highestrateinsouthernBrazil,andfourth master’s and2.26doctors for every1000inhabitants, Personal Improvement(CAPES). The statehas6.25 recognized bytheCoordinationofHigherEducation courses (doctorate,master’s andprofessionalmaster’s) Rio GrandedoSulhas356graduateprogramsand EXTENSION PROGRAMS

35 HOW TO INVEST IN RIO GRANDE DO SUL A report by the Court of Auditors of the Union published Taxes and Transfers, 43% higher than the previous year. in 2014 showed that the state is the second in number Rio Grande do Sul also relies on some of the largest of hospital beds per thousand inhabitants, with 3.05 – centers of reference in the field of healthcare, such as the national average was 2.6 –, and fourth in number of the Instituto do Cérebro (Brain Institute), o Hospital de doctors, 2.37 for every 1000 inhabitants. Clínicas de Porto Alegre (Porto Alegre Clinical Hospital) In 2013, investments in healthcare reached their highest and Dom Vicente Scherer Hospital, part of the Complexo percentage in the history of the state’s public management, Hospitalar Santa Casa da Misericórdia (Santa Casa with R$ 2.8 billion. In terms of total spending in the Hospital Complex), which rely on a variety of specialties sector, this amount is 12.3% of the Net Revenue from and are internationally recognized. STATES 36 receive thousands oftourists fromall over the world, Especially in the winter, the cities of Gramado and Canela fans ofradicalsportslikehang glidingandrafting. River Adventure Hub isawell-established destination for large number of waterfalls and nature reserves. The Antas for eco-tourism and adventure tourism, on account of the For itspart,theGauchoHighlandsareideal destination international eventsorganized inBrazil. International Airport. The city issixthinthe number of just 15kmfromdowntownand12SalgadoFilho to conventions–,withatotalareaof36,724.85 m², shows Center, prepared to host activities of different sizes – from Brazil’s most complete event centers, the FIERGS Event for cultural and business tourism. Porto Alegre has one of The Capital of Porto Alegre is one of the main destinations million toR$40.8million. 2011 to2013,thebudgetdestinedtourismrosefromR$15.1 establishments provided45,800unitsand107,387beds.From in 2013,thestatehad1271lodgingestablishments. These Alegre. According toa survey bytheSecretary of Tourism, ( and business, from the landscapes of the Gaucho Highlands Rio Grande do Sul has diversified vocations for tourism, leisure TOURISM Serra Gaúcha ), to the large supply of event centers in Porto ), tothelarge supplyofeventcentersinPorto turtles, crestedscreamersandcattleegrets,amongothers. that protects species like capybara, river rats, crocodiles, canyons, and Taim EcologyStation,a34,000hectare reserve National Park,hometoItaimbezinho,oneofBrazil’s largest The statealsofeaturesnaturereserveslike Aparados daSerra concentration ofwineproducers. is anotherfamousdestination, with Brazil’s highest Chocofest atEaster. Vale dos Vinhedos (Vineyard Valley) Festival, in addition to Natal Luz (ChristmasLights)and the movement increases further duringevents like the Film attracted by theregion’slow temperatures. In Gramado, Credit: CamilaDomingues/Palácio Piratini wanting tobeincontact withnature 3 -Fullofparks,nature reservesandwaterfalls,RSistheright destinationforanyone Credit: FabianoMazzotti production upclose 2 -In Vineyard Valley, intheGauchoHighlands,tourists can learnaboutthestate’s wine Credit: LeonidStrelioev 1 - The ChristmasLightsofGramadoare awellestablishedeventinthestate TOURISM ANDCULTURE 9.

37 HOW TO INVEST IN RIO GRANDE DO SUL 38 STATES Alfândega in downtown Porto Alegre. The fair celebrated the Among the main cultural events carried out in the state is southern Brazilat465institutions. Sul alsohasthehighestnumberofpubliclibraries in America’s largest culturalcomplexes.RioGrandedo found in in Brazil.OneofBrazil’s mosttraditionaltheatersis citizens pertheater, puttingthecityinsecondplace in thecountry. Initscapital,theproportionis38,000 number highest fifth the theaters, 76 has Sul do Grande A surveybytheMinistryofCulturepointsoutthatRio average wasoneinstitutionforevery60,822people. museum forevery26,600people,whilethenational of institutions perinhabitant. There isapproximatelyone in number place first the in comes state the 2011, conducted bytheBrazilianInstituteofMuseumsin to thestudy Art. Admittance tobothisfreeofcharge. According Foundation andtheRioGrandedoSulMuseumof outstanding attractionsliketheIberêCamargo Rio GrandedoSulhas397museums,amongthem, CULTURE Feira doLivro Porto Alegre, Theatro SãoPedro,oneofLatin Museus emNúmeros (Book Fair) held every year on Praça da (MuseumStatistics), The MercosurBiennialisanotherwell-established previous year. 420,384 booksover17days,2.26%percent more thanthe was visited by approximately 1,450,000 people, selling its 60 Credit: Alfonso Abraham The IberêCamargo FoundationisoneofRS’s mainmuseumsandislocatedinPorto Alegre attending theevent. with over1millionvisitorsofdifferent nationalities last editionin2013brought60artistsfrom25countries, show hasbeenheldinthecapitalsince1997,and event inthestate. The internationalcontemporaryart th edition in 2014.Inthemostrecent addition, the fair www.banrisul.com.br Phone: +55(51)3215-1515 [email protected] Zipcode:90018-900 Porto Alegre -RSBrazil Rua CaldasJúnior, 120 Banrisul www.badesul.com.br [email protected] Phone: +55(51)3284-5800 Zipcode: 90010-210 Porto Alegre -RSBrazil Rua General Andrades Neves,175 Badesul www.amcham.com.br/porto-alegre [email protected] Phone: +55(51)2118-3705 Zipcode: 90550-142 Porto Alegre -RSBrazil Av. DomPedroII,861-8 American Chamber ofCommerce Porto Alegre th floor www.relinter.rs.gov.br [email protected] Phone: +55(51)3288.6138 Zipcode: 90119-900 Porto Alegre -RSBrazil Avenida Borges deMedeiros,1501-17 Advisory Council International RelationsandCooperation www.fiergs.org.br [email protected] Phone: +55(51)3347-8787 Zipcode: 91140-001 Porto Alegre –RS-Brazil Av. Assis Brasil,8787 Grande doSul) FIERGS (Federation of Industriesthe State ofRio www.brde.com.br [email protected] Phone: +55(51)3215-5000 Zipcode: 90010-140 Porto Alegre -RSBrazil Rua Uruguai,155-1 Rio GrandedoSul Agency Extreme South Regional Development Bank(BRDE) USEFUL CONTACTS th floor th floor 10.

39 HOW TO INVEST IN RIO GRANDE DO SUL 40 STATES www.scit.rs.gov.br [email protected] Phone: +55(51)3288-7400 Zipcode: 90119-900 Porto Alegre -RSBrazil Av. Borges deMedeiros,1501-7 (SDPI) Secretariat of Development and InvestmentPromotion www.cultura.rs.gov.br [email protected] Phone: +55(51)3288-7540 Zipcode: 90119-900 Porto Alegre -RSBrazil Av. Borges deMedeiros,1501-19ºandar Secretariat ofCulture www.agdi.rs.gov.br [email protected] Phone: +55(51)3079-7000 Zipcode: 90010-050 Porto Alegre -RSBrazil Travessa FranciscodeLeonardo Truda, 40-23 Rio GrandedoSulDevelopment Agency (AGDI) www.jucergs.rs.gov.br [email protected] Phone: +55(51)3216-7500 Zipcode: 90030-130 Porto Alegre -RSBrazil Avenida JúliodeCastilhos,120 Rio GrandedoSulCommerce Registry(JUCERGS) th floor th floor [email protected] Phone: +55(51)3288-8100 Zipcode: 90020-021 Porto Alegre -RSBrazil Av. Borges deMedeiros,261 Secretariat oftheEnvironment www.sesampe.rs.gov.br [email protected] Phone: +55(51)3288-5550 Zipcode: 90119-900 Porto Alegre -RSBrazil Av. Borges deMedeiros, 1501-16 Micro andSmallBusinesses SecretariatforSupport ofSolidarityEconomyand www.scit.rs.gov.br [email protected] Phone: +55(51)3288-7400 Zipcode: 90119-900 Porto Alegre -RSBrazil Av. Borges deMedeiros,1501-7 Development Secretariat of Science, Innovation and Technological www.seinfra.rs.gov.br [email protected] Phone: +55(51)3288.5300 Zipcode: 90119-900 Porto Alegre -RSBrazil Av. Borges deMedeiros,1501–7 Secretariat ofInfrastructure andLogistics www.sema.rs.gov.br th th floor th floor floor www.turismo.rs.gov.br [email protected] Phone: +55(51)3288-5400 Zipcode: 90119-900 Porto Alegre -RSBrazil Av. Borges deMedeiros,1501-10 Secretariatof Tourism th floor

41 HOW TO INVEST IN RIO GRANDE DO SUL 42 STATES ( Eólica Ocean Industry( Among theprogramscoordinated bytheagencyareRS economic development. Industrial Policy, asetofinstrumentstopromotethestate’s AGDI participatesincollaboratingandcarryingout the state, bringingthemclosertodifferent governmentspheres. as wellhostingentrepreneursinterested international events with the goal of attracting investments, of activitiesandthestate’s participationinnationaland management. Itisamongitsattributionsthepromotion and stimulatinginnovation, competitiveness and local development, improving the regional production environment Rio GrandedoSul,withthemissiontopromoteeconomic It worksbyprospectingneweconomicopportunitiesfor do ExtremoSul–BRDE),BadesulandBanrisul. Development Bank(BancoRegionaldeDesenvolvimento Development System,alongwiththeExtremeSouthRegional Investment Promotion(SDPI)andbelongstotheState executive branchoftheSecretariatDevelopmentand Rio GrandedoSulDevelopment Agency (AGDI)isthe Promoção Comercial e Atração deInvestimentos ), CommercialPromotionand Investments Attraction RS IndústriaOceânica ), RS Wind ( in investing in the in investingthe RS RS ), ), www.agdi.rs.gov.br [email protected] Phone: +55(51)3079-7000 Zipcode: 90010-050 Porto Alegre -RSBrazil Travessa FranciscodeLeonardo Truda, 40-23 Rio GrandedoSulDevelopment Agency (AGDI) For moreinformation,pleasecontact: Extensão Produtiva eInovação Fortalecimento dasCadeiase Arranjos Produtivos Locais Chains andLocalProduction Arrangements ( Desenvolvimento Infrastructure forDevelopment( and the Production Extension and Innovation Project ( ABOUT OURSPONSOR ), Program to Strengthen Production ), ProgramtoStrengthenProduction ). ). RIO GRANDE DOSUL RIO GRANDE STATE GOVERNMENTOF STATE DEPARTMENT OFDEVELOPMENT AND INVESTMENTPROMOTION Infraestrutura para o Infraestrutura parao Programa de 11. th floor Projeto ) 43 HOW TO INVEST IN RIO GRANDE DO SUL