Business opportunities In Santa catarina

Santa Catarina: Enterprising spirit, success in business

Santa Catarina is always remembered for the strength of its industry, but in no way does this mean that its other economic activities are relegated to second place. On the contrary. The services sector employs more people than the industries and the commercial sector has the greatest number of establishments. The State also has over 100 thousand workers performing in other sectors, such as agriculture, cattle-raising, fishing, construction, and electricity, gas and water production and distribution. This activity diversification is another direct consequence of Santa Catarina’s successful decentralized development model.
This diversified basis has established barriers against the instabilities of the national and international economic conjuncture. The State economy increased by 340% over the last three decades, well above the Brazilian average. Santa Catarina’s products are presently used in 190 countries.


Economic centers

Santa Catarina’s economic activity is characterized by being divided in centers: agro industrial (West), electro-metal-mechanic (North), wood (Plateaus and Mountainous regions), textile (Vale do Itajaí), mineral (South), technological (Capital) and tourist (practically the entire State). Such concentration does not stop many cities and regions from developing different specialties, strengthening other segments. That is technologies case, for example. In 1992, the State’s first technological center (Tecnópolis) was created in Florianópolis, to propel the local economy with a non-polluting industry, which would not compromise the Island’s tourist vocation. Ten years later, Blumenau (textile) and Joinville (metal-mechanic) have software development centers that rival the capital.

Agro Industrial Center

It involves over 2.9 thousand industries, which employ 76 thousand people, and concentrates most of the State’s food production. The agro industrial complex amounts to 38% of all exports from Santa Catarina. It represents approximately US$ 1 billion a year in chicken and pork meat.

Lumber Center

This is the largest furniture manufacturing center in Latin America, and employs 99 thousand people and generates more than US$ 800 million per year – almost a quarter of the total commercialized by Santa Catarina.

Electro-metal-mechanical center

There are more than 4.5 thousand industries, employing 86 thousand people, which are responsible for 23.5% of the international business transacted in the State, and contribute US$ 700 million towards the export trade balance. It relies on 86 thousand employees.

Textile/clothing center

The largest concentration of these industries in Latin America is here – 6,444, of which 26 are big companies – considered the second largest in the world. The segment exports US$ 260 million (6.7% of the State’s total volume) and, of the industrial sectors and employs the most people: 124 thousand people.

Mineral Center

The carboniferous and ceramic segments together make up 2,100 companies and represent 4.6% of the State’s exports (US$ 141 million). Santa Catarina’s ceramics sector accounts for 60% of the Brazilian production of flooring and tiles. The anthracite coal production represents 47% of the national production, which places Santa Catarina as the largest producer in the country.

Technological Center

Santa Catarina’s technological center is made up of 1,500 companies that gross over R$ 1 billion a year and employ 13 thousand workers. The greater part of this sector is in Blumenau, Florianópolis and Joinville.

Fishing Center

According to figures issued by the Associação Brasileira de Construtores de Barcos (Acobar – Brazilian Association of Boat Builders) published in 2005, there are officially 41 fishing boat shipyards, employing 2.2 thousand people in Santa Catarina. Artisanal fishing currently involves 6.1 thousand boats and 25 thousand fishermen who catch 21 thousand tons of fish, creating revenues of R$ 95 million. 12.6 thousand fishing boats, 748 passenger boats and 14.7 sport and recreation boats are registered in the State. Moreover, there are 58 marinas and yacht clubs and 49 nautical workshops and retailers.

Tourism Center

Santa Catarina registers an influx of 3 million tourists in the summer – including 500 thousand Catarinenses who travel within their own state – this brings in revenues of US$ 780 million. There are 2 thousand kinds of lodgings available which offer 200 thousand beds. The sector generates 150 thousand direct and indirect jobs. The municipalities which attract the most visitors are Florianópolis, Balneário Camboriú, Blumenau and Joinville, although it must be said that the tourist attractions are distributed in all parts of the State.

Industrial Complexes in Santa Catarina

Agribusiness (food and drink)Electro-metal-mechanicalTextile (clothing, shoes and textile handcrafts)
Largest concentration:   Chapecó, Concórdia, VideiraLargest concentration:   Joinville, Jaraguá do SulLargest concentration:   Blumenau, Brusque
2,970 companies4,548 companies6,444 companies
76 thousand employees86 thousand employees124 thousand employees
38% of Santa Catarina’s exports23.5% of Santa Catarina’s exports6.7% of Santa Catarina´s exports
Lumber (furniture, wood, paper and cellulose)Mineral (mining industry and non-metallic products)Technology
Largest concentration:  Lages, São Bento do Sul, MafraLargest concentration:   Criciúma, Tubarão, UrussangaLargest concentration: Blumenau, Florianópolis, Joinville
5,532 companies2,141 companies1,500 companies
99 thousand employees32 thousand employees13 thousand employees
21% of Santa Catarina’s exports4.6% of Santa Catarina’s exports

Sustained growth

Sustained growth and product quality are a permanent consideration for the Santa Catarina business sector, as they are fundamental for export growth. The international ISO-9000 certificate has already been awarded to over 300 companies, which places Santa Catarina in the sixth position in Brazilian ranking. In the area of environmental management, 46 companies have obtained the ISO-14000, known as the “green stamp”.
Santa Catarina’s private sector has invested in social responsibilities. Research carried out in 2003 by the IPEA, an applied economy research institute, showed that about 24 thousand local companies made some kind of donation, or offered a type of activity or project of a non-obligatory nature towards health, education, food, social welfare and sport. This statistic represents 50% of the companies in Santa Catarina with one or more employees. Among the larger firms, 90% invest in activities which benefit their employees and the disavantaged communities.
The enterprising spirit of the State is an interesting strong point. Six in every ten economically active inhabitants work in micro and small firms. Small and medium-sized businesses account for more than half of the salaries paid out in Santa Catarina.

The strength of the industry

A housewife in Minas Gerais carefully sets the table in order to receive the family with her favorite glassware. The captain of an amateur soccer team in Belém do Pará proudly lifts up the trophy won in the tournament of the city. The telephone operator of a small city in Rio Grande do Sul does whatever she can to answer a call – and she can only do such thing thanks to the efficiency of the new Telephone Central Station. In São Paulo, a girl enters a store in order to choose a hat she will give her grandfather.
What do all these scenes have in common? The products that appear in all the scenes were probably made in Santa Catarina. These are some segments where the State is the national leader – but are not the only ones. The same happens with ceramic dishware, packaging and foam products and sports and nautical products, just to name a few. The State stands out in many other segments; not only nationally, but also to have conquered an important slice of the international market. Santa Catarina produces industrialized chicken and pork foods, clothing industry, hermetic compressors, gardening tools, moving parts for track tractors, bicycle pedal production and crochet strings.
Santa Catarina’s transformation industry is the fifth largest in Brazil in number of companies (43 thousand) and in the number of employees (476 thousand). All this in a State that occupies only 1.1% of the national territory.

Santa Catarina´s Imports and Exports

Main countriesMain products
Exports US$ 5.9 billion1st United States1st Chickens (meat and giblets)
2nd Argentina2nd Tobacco
3rd Germany3rd Motor compressors
4th Holland4th Electric motors
5th United Kingdom5th Wooden furniture
6th Russia6th Pigs (pork meat, carcasses and giblets)
7th Japan7th Fiberwood and Pinewood
8th Mexico8th Cylinder blocks, cylinder heads etc, for combustion engines
9th Italy9th Tiles, ceramics, glazed glass, enameled goods
10th Chile10th Doors, frames, doorframe linings and sills
Imports US$ 3.4 billion1st Argentina1st Refined copper cathodes and their elements
2nd China2nd Polyethylenes
3rd Chile3rd Ethylene Polymer
4th United States4th Demijohns, bottles, flasks etc
5th Germany5th Texturized and artificial polyester fiber
6th Uruguay6th Wheat
7th Peru7th Polyester fiber
8th Italy8th Un-toasted malt
9th Indonesia9th Refined copper fibers
10th Paraguay10th Corn grains, except for sowing

Third Sector: Trade and services

Although Santa Catarina is recognized for the strength of its industry, the other productive sectors reveal the same strength. The services sector employs more people than the industries and the commercial sector has the greatest number of establishments. The State also has over 100 thousand workers performing in other sectors, such as agriculture, cattle raising, fishing, construction, and electricity, gas and water production and distribution.
Santa Catarina’s trade counts on 132 thousand establishments of varied nature and employs 260 thousand people. The gross annual revenue is over R$ 40 billion. The automobile segment, computed apart by IBGE, is responsible for 35% of the trade bill in Santa Catarina – more than R$ 14 billion per year. Supermarkets (R$ 4.2 billion, equivalent to 10% of the total turnover of Santa Catarina’s commerce) and the sale of food products, beverages and tobacco in specialized establishments (R$ 3.1 billion, 7.9% of the total).

The 20 largest companies in Santa Catarina

Class.CompanyActivityTotal AssetsNet Sales
(R$ thousand)(R$ thousand)
1st Bunge AlimentosFood6,478,33510,015,382
2nd SadiaFood5,732,4137,085,822
3rd TratecbelEnergy4,987,6162,467,299
4th PerdigãoFood3,047,7944,717,956
5th CelescEnergy3,358,7532,994,460
6th WegMachines and Equipment1,687,2102,153,999
7th TupyMachines and Equipments1,986,3041,616,651
8th SearaFood1,158,1712,049,788
9th Vega do SulMetallurgy1,568,7941,160,375
10th EmbracoElectro-electronics1,137,1341,234,381
11th Weg ExportsMachines1,234,381787,298
12th TigreTubes and connections1,127,3361,036,724
13th EletrosulEnergy2,828,380468,394
14th CoopercentralCooperatives592,5821,593,575
15th AgrencoWholesale and foreign trade500,424928,233
16th CasanSanitation1,255,355341,975
17th CecrisaCeramic720,375336,547
18th HeringTextile752,694320,295
19th Alfa Cooperative Cooperatives335,938662,084
20th Maximiliano Gaidzinski/ElianeCeramic573,018372,945
Source: Getúlio Vargas Foundation/2006.

Tourism in expansion

Adding together the summer holidayers, events participants – including those who visit the large October festivals –, senior tourists and the pilgrims who visit Saint Paulina’s Sanctuary, Santa Catarina draws more than 8 million people annually – including foreigners, Brazilians from other states and people from Santa Catarina who travel within their own State. Santa Catarina receives approximately 3 million visitors in the summer, of which 70% come from outside the State (61% are Brazilians from other states and 9% are foreigners). This generated an estimated revenue of US$ 777 million.
Congresses, conventions and large events are becoming more and more important: All together, there are 13 Conventions & Visitors Bureaux in all State. More than 10 thousand events per year are held in more than 100 events’ locations in the State. In October alone, 12 typical festivities attracted about 1 million tourists. The largest, the Oktoberfest, in Blumenau, received more than 600 thousand visitors.
Senior citizen tourism is in expansion in the State. The resort of Camboriú alone received 100 thousand tourists in this age group in the months of March, April and May. The Sanctuary of Saint Paulina, in Nova Trento, is the second religious pilgrimage destination in Brazil and is visited by 1 million people every year.
The hotel industry sector in Santa Catarina has grown 100% in the last four years, from 900 to 2000 businesses, according to the Brazilian Association of the Hotel Industry. There are approximately 200 thousand beds available in this sector, which generates 150 thousand direct and indirect jobs.
Santa Catarina: Land of opportunities
Santa Catarina is a blessed land, full of virtues and with a great potential. A land where the beauty of its landscapes is the perfect scenery for the progress of a polite and hardworking people, the result of a fascinating mixture of peoples from all around the world who met in this small paradise in southern Brazil. Transforming Santa Catarina into a still better place to live is somewhat of a challenge for any governor.

The success of Santa Catarina as a state that offers good job opportunities and excellent quality of life may be explained in large part due to its decentralized development, with a strong influence of the cultural heritage of European immigrants and an emphasis on work ethics. Appreciation of regional vocations resulted in balanced growth, in that each region plays a relevant economic and cultural role. Instead of large urban centers wrought with the problems caused by overpopulation, Santa Catarina relies on the strength of average-size towns – none has more than 500 thousand inhabitants.
Such characteristic contributed to the emergence of companies with an important presence both in the domesti and international market. Santa Catarina products are exported to 190 countries. The Northern region of the state is known as a metal-mechanic center and for furniture manufacture, whereas in the Itajai Valley, the textile industry and crystal production are the highlights. In the south, the highlights are ceramics and the coal industry. In the West, agro industry is the strong suit of the region, whereas the Plains explore cattle raising and the lumber industry. The technology complex of Santa Catarina includes 1.5 thousand companies with a total turnover of more than R$ 1 billion per year and employs 13,000 workers. The agribusiness, trade and service sectors are major job and income generators in every region of Santa Catarina.
Santa Catarina has a privileged location in the Mercosur, halfway between the two largest industrial centers in the continent, São Paulo and Buenos Aires, and less than a two-hour flight away from the capital cities of the neighboring countries. All regions are served by paved highways in good condition. The three ports (Itajaí, São Francisco do Sul and Imbituba) are among the best equipped in the country for the flow of exports. In the last three decades, the economy of the state grew more than three-fold. The results of education, health, life expectation, income distribution, among others are all above the national average.
Tourism flow in the state is over 8 million people a year, more than the whole of its population. In summer, the 560 km of seashore offer a variety of more than 500 beaches. In winter, snow and rural tourism in the Mountain Plains attract tourists from all over. Becoming more well-known worldwide is a challenge that Santa Catarina has faced with success. The most difficult thing is to bring the visitor here the first time. Returning to Santa Catarina is almost inevitable; such is the passion that this place tends to incite.
We have reinforced the concept of decentralization, a major reason for the development of Santa Catarina, with the creation of 36 Secratariats for Regional Development. We do our share by constantly seeking to govern in an agile and transparent manner. A government that gives voice to each city. A government that values autonomy and the peculiarities of different regions and that brings improvement to every corner of the state. Therefore, this is a government worthy of this land and its people.

Santa Catarina: Fast track for development

The fast economic development that distinguishes Santa Catarina is ensured by its excellent infrastructure. Its ports, highways, railroads and airports are among the best in the world. The state has the largest level of rural electrification in Brazil: 100%. Investments in new hydroelectric plants assure self-sufficiency on the generation of  energy.
The Santa Catarina railroad network and the port area are also constantly receiving improvements and being expanded. Practically all the territory is covered by cellular and residential telephony. Broadband internet access is easily available.

Ports

There are three maritime ports along the Santa Catarina coast: Itajaí, São Francisco do Sul and Imbituba. They are well equipped and there are regular shipping lines between Santa Catarina and the principal world ports. Combined, the ports handle some 14 million tons per year. Port of Itajai is the nation’s third largest port (and thirteenth in Latin America and in the Caribbean) in container handling. Responsible for 16,7% of the nation’s operation with containers, Santa Catarina is the only state with three representatives on the ranking of the 15 principal ports in this area, as São Francisco do Sul occupies the 6th place and the port of Imbituba is in 15th.

Port of São Francisco do Sul

This is Santa Catarina’s main grain handling port and mostly handles exports. It is administered by the Government of the State of Santa Catarina, and can receive vessels of up to 12 meters draft. The access channel is 9.3 km long and 150 meters wide. There are five loading berths at dock able wharves of 975 meters and three internal warehouses with a capacity of 78 thousand m3.
This port’s facilities allow handling of solid and liquid bulk goods, and general and containerized cargo. It handles approximately 8 million tons per year, more than half of the volume of cargo that passes through the state’s ports. Some of the exported items are soy grains, furniture, soy bran, motor compressors and electric motors. It is located on the state’s northern coast, 215 kilometers from the Santa Catarina capital and 580 kilometres from São Paulo.

Port of Itajaí

Located 98 kilometres to the north of Florianópolis, it is the nation's third largest port in container exports. The port of Itajaí has berths at dock able wharves of 740 meters, with depths of 10 meters, which can handle three ships at one time. Its facilities occupy more than 15 thousand m² of sheltered area to stock the products and 38 thousand m² unsheltered for container storage. It is responsible for 80% of all exports in Santa Catarina and 4% of the national total. The main products exported from itajaí are frozen chicken and meat, followed by lumber and its derivatives, floor and wall tiles, motors and its accessories, paper, tobacco, apples, textiles and cargo on wheels (buses, tractors and harvesters). In recognition for the quality of its supply of basic infrastructure of services and operations it was awarded the ISO 9001:2000 certification, the first conceded to a port authority in Brazil. It is managed by the Itajaí City Hall.

Port of Imbituba

Administered by the private sector, it is one of the principal foundations of the economy in southern Santa Catarina. A 300-meter long dock, land area of 1.55 million m2 and water area of 750 thousand m2 allow vessels with a draft of up to 10-meters to operate along its four berths. It has an ample amount of cargo storage space and excellent natural conditions.
The port moves over 1 million tons of goods annually, ranging from shoes, tobacco, wheat, pottery, cotton, caustic soda, coal coke, sugar, salt, fertilizer, and chicken meat. With the return of the container lines, the volume is expected to increase to its capacity, which registered 1.4 million tons in 2006. It is located on the South coast, 90 km from the capital.

Ports in Santa Catarina

São Franscisco do SulItajaíImbituba
Container traffic (millions of t/year – 2006)7.94.581.4
Main ProductsSoybeans, furniture, soy meal, electric motors and motor compressors.Frozen chicken and meat, followed by lumber and its derivatives, floor and wall tiles, motors and its accessories, paper, tobacco, apple, textiles and cargo on wheels.Shoes, tobacco, ceramics, cotton, caustic soda, coke, sugar, salt, fertilizers and chicken meat.

Railroads

Santa Catarina’s railroad network is 1,361 km long in three branches: two running north-south and one east-west, servicing São Francisco do Sul’s port. A railroad line in the South of the State connects the coal production zone to the thermoelectric plants and Imbituba’s port.
Santa Catarina’s railroads are used for loading and unloading cargo. The main goods transported are soy bran, fuel, fertilizer, wood, cement, and sand.

Railroad Integration Project

A new transportation system for moving agricultural and agribusiness production from the Western Regions will be implanted in the coming years. The so-called Integration Railroad plans for the installation of new railroad branches, the expansion of capacity at the port of São Francisco do Sul and modernization of the existing railroad network.

Airports

Santa Catarina has 2 international operating airfields – one in Florianópolis and another one in Navegantes, recently enlarged – besides other important regional airfields, which have normal operations and capacity for medium size airplanes, the case of Joinville, Chapecó, Blumenau, Lages and Forquilhinha/Criciúma. Completing the excellent area of coverage in the state, there are four sub-regional airports, in Caçador, Três Barras, Concórdia and São Miguel d’Oeste.
The Hercílio Luz Airport, in Florianópolis, an important tourist city in the country during the summer, is becoming increasingly more important as an event location, receives more than 1.5 million passengers per year, distributed in around 30 thousand flights.
By 2009, Florianópolis will receive a new passenger terminal, with a capacity for 2.7 million passengers per year (almost twice the current size), in an area of 27.4 thousand m2.

Highways

More than 62 thousand kilometers of federal, state and municipal roads form the Santa Catarina highway network, which has the second best quality in the country. All of the 293 municipalities have access roads.
The BR-101 highway, the principal coastal link between Santa Catarina and the other states, was duplicated between Florianópolis and the northern State to facilitate the flow of Santa Catarina’s production, to the large consumption centers in south-eastern region.
Some US$ 1.1 billion are being invested in the highway widening project in the south region, between Palhoça (SC) and Osório (RS). The project is strategic and it will be completed by 2008. In addition to allowing access to the three Santa Catarina ports it is the principal artery in the Mercosur Corridor, the trajectory of which cuts the most developed region of the Latin America continent.
The road network also has two other important highways: BR-116, which is 310 kilometres long, crosses the interior of the state in the north-south direction, connecting it with neighbouring states, and BR-282, which is 690 kilometres long and makes a transversal cut across the state linking the state capital, Florianópolis, to the Republic of Argentina.

Electrical power

Santa Catarina’s industry will not slow down on account of energy. The state has 83 power plants in operation and other 19 planned constructions in the Ten-Year Plan of the Mine and Energy Ministry, among which nine are previously authorized or for which a bidding process has already taken place. These works will ensure Santa Catarina’s self-suffiency at least until 2015. The state is also worried about developing alternative forms of energy such as wind power, and already has three pioneer generating facilities – two in Água Doce, currently generating 13,800 kW, and one in Bom Jardim da Serra, currently generating 600kW. This production is being used to light the road on Rio do Rastro Mountain Range.
All of the state´s municipalities have electrical energy, mainly generated by a company managed by the state government, Centrais Elétricas de Santa Catarina (Celesc), Gerasul – managed by the federal government. The state has the largest level of rural electrification in Brazil: Almost 100%. The hydraulic potential of the State is 9.5 million kW – today, the gross hydraulic generation is 5.5 million kW. Santa Catarina became self sufficient in the production of electric energy at the end of January of 2007 in Machadinho, producing 1,    140 MW, sufficient to provide for 50% of the state’s demand, today, and Campos Novos, which has the capacity to generate 880 MW, sufficient to provide for 27.5% of the demand. It will have the third highest dam in the world.
The most suitable environment preservation alternatives to energy production are also part of our generating assets. Celesc and Tractebel – the two companies which work in the generation of energy in the State, have made joint ventures with private national and international companies to study alternatives in wind and biomass plants.

Natural gas

Santa Catarina has had natural gas as an energy source since April 2000, which benefits 29 municipalities. More than 1 million m3/day are transported by the SCGAS network – Santa Catarina Gas Company, a mixed-economy company which is responsible for the distribution of piped natural gas in the State.
The network is 500 km long – the third largest in Brazil – and covers the North of the State, the Itajaí Valley, Greater Florianópolis and the Southern Region, supplying industries and gas stations.

Subsoil resources

Santa Catarina is responsible for 63% of the Brazilian gross charcoal production – 7.8 million tons – and for 43% of the national production of treated coal – 2.5 million tons. Among the other mineral resources is the second largest reserve of quartz in Brazil and large occurrences of ceramic clay, bauxite and semi-precious stones. Santa Catarina also has one of the largest reserves of potable underground water in the world, the so-called Botucatu reserve.

Media and communications

Santa Catarina has an efficient communications system which enables contact with any part of the country, and abroad by means of imaging, text, data and voice. The State is also connected to the mobile maritime service, which makes contact possible by telephone or by message with ocean going vessels in any part of the planet.
All of Santa Catarina’s municipalities are covered by fixed telephone (1.6 million lines) and almost the whole territory is connected by mobile telephony (1.3 million mobile phones). High speed internet connections are available for domestic and business use and the State is interconnected by fiber optic underwater cable (Unisur) with Argentina and Uruguay.
All regions receive local and national television channels and cable and satellite TV services. There are 240 radio stations (184 commercial and 56 communitarian), 20 television stations, open and paid, 135 newspapers and an array of regionally distributed magazines.

Health and sanitation

Health and sanitation in Santa Catarina is fine. The hospital medical service allows access to medicine with quality. Clinics and hospitals have the most modern imaging diagnostic equipment. There are 215 hospitals in Santa Catarina of which 213 are accredited by SUS – (Federal Health System) –, totalling almost 15 thousand beds (2.87 per thousand inhabitants). There are 3,772 health units, which include out-patient centers, specialized first aid centers, health centers, rehabilitation centers, sanitation watch centers, mobile units and other diagnosis and therapy services. There are 8.6 million doctors (1.4 per thousand inhabitants).

Public-private partnerships

The government of Santa Catarina established the possibility of Public-Private Partnerships (PPP’s) almost a year before the federal law that provides for this new form of concession, where the private sector carries out the work and then manages it in order to recover the investment. The SC Partnership was created, a mixed ownership company, whose business purpose is to generate investments in the State, both through PPPs and through conventional concession of public services. The Santa Catarina Program for Business Development (Prodec), which had already been offering tax breaks, has been restructured to encourage more investments. The priorities established by SC Parcerias include the duplication of existing roads and construction of new ones, modernization of existing ports and construction of new ones, expansion of water and sewage systems, and expansion of equipment intended for entertainment, leisure, and improvement of tourism.

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