Business in Rio Grande do Sul

EENI- School of International Business

Sub-subject: International Trade and Business in Rio Grande do Sul (Brazil). Syllabus:

  1. Introduction to the State of Rio Grande do Sul (Brazil).
  2. The Economy of Rio Grande do Sul.
  3. Business Opportunities in Rio Grande do Sul.
  4. International Trade
  5. Foreign Direct Investment (FDI) in Rio Grande do Sul.
  6. Case Study: agricultural equipment sector.
  7. Doing Business in
    - Porto Alegre
    - Caxias do Sul
    - Pelotas.
  8. Case Study:
    - Gerdau
    - Marcopolo.
Sub-subject “Doing Business in Rio Grande do Sul (Brazil)” is studied...
  1. Masters (e-learning): International Business, America, and BRICS Countries
  2. Doctorate DIB in America
  3. Course South America

Languages of study: En or Fr Bresil Es Brasil Pt Brasil

Credits of the sub-subject “Business in Rio Grande do Sul”: 0.5 ECTS

Sample of the Sub-subject: Doing Business in Rio Grande do Sul (Brazil - South America):
Business Rio Grande Sul Brazil

Sub-Subject Description: Foreign Trade and Business in Rio Grande do Sul (Brazil).

Rio Grande do Sul (Brazil) accounts for 7% of Brazilian Economy:

  1. 3% of Brazilian area
  2. 6% of Brazilian population
  3. Gross domestic product: USD 129.7 billion
  4. Rio Grande do Soul is the main manufacturer of grains
  5. The second biggest commercial and industrial hub in Brazil
  6. Rio Grande do Sul is the first centre for agricultural equipment in Brazil

Over the past years, some companies from Rio Grande do Sul (Gerdau, Marcopolo, Artecola, and Lupatech), have joined the select group of Brazilian multinationals.

Ranking of the most internationalised companies Rio Grande do Sul
RANKING - SECTOR OF ACTIVITY
1º - Gerdau - Metallurgy and steel industry
2nd - Marcopolo - Vehicles and parts
3º - Artecola - Chemicals and petrochemicals
4º - Lupatech - Mechanics
5º - Agrale - Vehicles and parts
6º - DHB - Vehicles and parts
7º - Randon - Vehicles and parts.

Rio Grande do Sul produces 67% in Brazil road cargo transport, 55% of the harvesters, 50% of buses/mini-buses, 8% of cars and 1% of lorries. 576 Brazilian and international auto-Related companies in operation.

Rio Grande do Sul is:

  1. The third major industry park in Brazil
  2. The first manufacturer of leather and footwear
  3. The first centre for transport equipment production
  4. The first centre for agricultural equipment
  5. The second centre for chemical products
  6. The second centre for rubber and plastics
  7. The second centre for metal products
  8. The second centre for machines and equipment
  9. The second centre for furniture
  10. The second centre for beverage production
  11. The fourth centre for food manufacture
  12. The fourth centre for vehicle production.

The Footwear industry of Rio Grande do Sul is responsible for 35% of Brazilian production and employing 340,000 people within Rio Grande do Sul. The main hub of furniture production of Porto Alegre is situated in the Bento Gonçalves municipality with 298 factories including Italínea, SCA, Dell Anno, Todeschini, Criarae and Bentec

Estimated at R$ 203 billion, agribusiness represents 11% of state gross domestic product; 30% of wealth generated and 60% of exports

Main chemical/petrochemical hub of Rio Grande do Sul is the Triunfo municipality.

International Trade of Rio Grande do Sul.

  1. Export destinations: Argentina, the United States, Paraguay, the People's Republic of China, Russia, the Netherlands, Germany, Italy, Chile, Spain, Uruguay, and Saudi Arabia.
  2. Import partners: the Southern Common Market (MERCOSUR), Africa, the United States, China, Germany

Porto Alegre (capital of Rio Grande do Sul) was the tenth most populous city in Brazil. Microsoft, Dell, and HP are installed in the capital. Porto Alegre hosted the World Social Forum.

Caxias do Sul is the second biggest metal-mechanic hub in Brazil and one of the biggest in Latin America. In 2011, Caxias do Sul grew by 18% in exports to international markets, while imports showed the rate of 7.5%.

Pelotas is the commercial hub of the South in Brazil.

Gerdau is the leading manufacturer of long steel in the Americas and one of the biggest suppliers of specialty long steel in the World. It has 40,000 employees and an industrial presence in fourteen countries. In countries where the Company has plants, its products are sold directly to customers and through Gerdau's own or independent distribution channels.

Brazil Gerdau

Marcopolo is one of the greatest bus body manufactures in the World. Its bus manufacturing operations are conducted in eleven production facilities, of which four are in Brazil. Marcopolo has seven industrial complexes abroad, including one wholly-owned facility in South Africa, and joint ventures in Argentina, the Republic of Colombia, the Arab Republic of Egypt, India, and Mexico.

Rio Grande Sul Marcopolo

Marcopolo

Founded on August 6, 1949, in Caxias do Sul, Rio Grande do Sul, Marcopolo SA is a company devoted to the manufacture of “carrocerias” of buses road, urban and micros. Leaders in Brazil, Marcopolo is responsible for near 50% of “carrocerias” of buses produced in Brazil. The company has four units in Brazil and factories in Argentina, Colombia, Mexico, Portugal and South Africa, with exports to 60 countries, including, the United States, France, England, Germany, Spain, Portugal, Holland, Mexico, Argentina and Saudi Arabia. The consolidated results confirm the good performance of the Company experienced in recent years. Notwithstanding the adversities, on the one hand by the stagnation of the economy of the main markets abroad, and another, internally, by Economic unsteadiness, mainly by expectations of the results of the elections, the company exceeded the targets set by increasing local production and to the units abroad. Especially in the Middle East, is highlighted as the largest supplier of this market.

AZALEIA.

Footwear Azaléia is the biggest company of footwear from Brazil. A philosophy of Footwear Azaléia reveals not only the attitude of his administration, but is this the way a company treats its employees, customers, suppliers, community and Government. The company also is showing the aggressive policy of internationalisation of their footwear. So the Footwear Azaléia S/A was indicated by the industry to receive the trophy Featured Export INSERÇÃO INTERNATIONAL.

The company produces every year 45 million pairs, getting a gross turnover of 650 million dollars and generating 14,000 direct jobs and 3,500 indirect. In recent years; it has undertaken a series of actions to put the brand Azaléia in several countries. The success of the venture resulted in the installation of commercial offices in the United States, Peru, Chile, and the Czech Republic and is in negotiations with the United Arab Emirates and the United Mexican States. Today, the Group Azaléia exports 20% of the total produced.

Rio Grande do Sul Department of Development and Investment Promotion aimed to the promotion of economic development, and, thus, the improvement of social conditions. Its mission is to promote the sustainable development of Rio Grande do Sul.

The Foundation of Economics and Statistics is a research institute of the state Government of Rio Grande do Sul, Brazil, whose goal is to assist economic and social planning.



EENI Business School