08/27/2014 14h58

São Paulo reports US$ 27.7 billion in investments announced in the State in 2013

Metropolitan region of São Paulo and administrative region of Campinas led the investments

Investe São Paulo

The infrastructure sector led the amount of investments announced in the State of São Paulo in 2013. From the US$ 27.7 billion reported, 65.6% were from projects related to the sector, according to the Research on Investments Announced in the State of São Paulo (Piesp) held by the State Data Analysis System Foundation (Seade) and released on Monday, July 28, by Investe São Paulo.

“The PPP projects and the growth prospect of the consumer market in the state – which is already the largest in the country – have driven both public and private investments to improve the logistics infrastructure of this region. This only strengthens the position of São Paulo as the most developed region of Brazil and with the best logistics for the outflow of production,” says the President of Investe SP, Luciano Almeida. The investment promotion agency is linked to the Department of Economic Development, Science, Technology and Innovation.

Out of the US$ 27.7 billion, approximately US$ 17.1 billion (61.8% of the total amount) should be invested by 2016, and US$ 9.7 billion (35%) between 2017 and 2021. Long-term investment announcements, for ten years or more, totaled only US$ 868.8 million, or 3.1%.

Also regarding economic sectors, the industry also concentrated a large part of the investments, totaling US$ 5.4 billion, which is equivalent to 19.6%. The service sector stood at US$ 3.8 billion (13.6%), while the trade sector accounted for US$ 327 million (1.2%).

Investments in infrastructure were higher especially in the transportation subsector, with a share exceeding 70% in the category, reaching US$ 12.9 billion.

Among the highlights are the extension of the subway network in the Metropolitan Region of São Paulo, the duplication and construction of Dersa on highways, the modernization of Viracopos, the construction of the new Executive Airport of São Roque, the investments from Valor Logística Integrada and Ecorodovias Group in the Port of Santos and the extension of the cabotage fleet of Aliança Navegação e Logística, a subsidiary of the German company Hamburg Süd. 

Also within infrastructure, the sum of investments announced for the energy subsector and sanitation were similar: US$ 2.7 billion (15.2%) and US$ 2.05 billion (11.3%), respectively, of the total in the sector. Lastly, the telecommunications subsector reported US$ 422.5 million. The highlight was the US$ 1.1 billion investment reported by Raízen to generate energy from sugarcane bagasse and expand the production of plants in São Paulo.

Embraer’s announcement, informing the investment of US$ 1.7 billion in the development of the second generation E-jets at the plant in São José dos Campos led the subsector of other transportation equipment as the most representative within the industry. In total, it was US$ 5.4 billion for the sector and US$ 1.8 billion for other transportation equipment (33.6% of the total).

Next, still in the industry subsectors, the automotive sector reported investments totaling US$ 1.495 billion, 27.7% of the total. Numerous projects have been announced, with special mention to the projects assisted by Investe SP, such as the plants of Honda in Itirapina, Mercedes-Benz in Iracemápolis, General Motors in São José dos Campos, and Chery in Jacareí. There was also an investment made by Volkswagen in São Bernardo do Campo.

Regions:

The region with the largest presence in terms of investments announced in 2013 is the Metropolitan Region of São Paulo, accounting for US$ 14.5 billion, or 52.2% of the total. It is followed by the Administrative Region of Campinas, with 13.3% of the total, and Vale do Paraíba and Litoral Norte, with 11.5%. 

In the observation of regionality within each economic sector, São Paulo is still prominent in all of them, except for trade, where the Administrative Region of Campinas stands out as the most representative: US$ 93.5 million and 28% of the total. The two regions also stand out in almost all sectors except for infrastructure, where 14% of investments were announced for several cities simultaneously.

Piesp also reported 399 projects that were confirmed by the companies, but had no specifications in terms of values, in various economic sectors. 

About Piesp

Piesp records investment and productive expansion announcements in São Paulo that are reported by the press. The main focus is the distribution of investments both in economic sectors and in the regions of the State. The information is confirmed by Seade with the companies to provide consistency and reliability to its records.