Volume of attracted companies indicates import substitution in São Paulo

During the crisis, Investe SP reports best results in January in terms of investment attraction in seven years. This means importers are starting to produce in Brazil

The results reported in January with regard the investment attraction work conducted by Investe São Paulo (investment attraction agency hired by the Government of São Paulo) revealed the best performance this month during the seven-year history of the agency: R$ 28.9 billion with the potential to generate 22,700 direct jobs. In total, 16 projects were attracted during events, national and international contacts and even some companies that contacted the agency, which is located in Jaguaré in the West region of São Paulo.
According to the president of Investe SP, Juan Quirós, in addition to being impressive at first sight, these figures indicate the beginning of an import substitution trend, beginning with the state of São Paulo; “Companies of different sectors have noticed this import substitution trend and envision a scenario in which Brazil, pressured by the rise in the US currency, will start buying raw materials produced in the country,” said Quirós.

Investe São Paulo entered into confidentiality and service agreements with companies in the following sectors: aerospace, green economy, automotive, logistics, healthcare, life sciences, among others, from countries such as Turkey, China, Germany, France and also many from Brazil. The average number of jobs created per project is 160.9. After the execution of a commitment with Investe SP, the agency starts providing assistance free of charge seeking to define the best locations, infrastructure, logistics, labor supply, tax incentives, etc.

According to Quirós, this trend, initially motivated by the foreign currency issue, could represent the leverage for the recovery of the Brazilian industrial park; “This trend that we see today in the state of São Paulo may represent the beginning of the recovery of the Brazilian industry starting from São Paulo, which has the best infrastructure, training of workforce, universities and institutional stability,” he said.

The president was also impressed with the figures of January, which already represent a historical record even if removing from the list the largest investment, in the area of Information Technology, which provides for the generation of 20,000 direct jobs in two cities of São Paulo. “It is, indeed, an import substitution trend that will help Brazil in a delicate scenario such as the current one,” said Quirós.

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