Spain plans second wave of investments in Brazil
Valor Econômico
Entrepreneurs of 70 Spanish companies land in Brazil this week, in an effort of the Government of Spain to create a "second wave" of investment of the country in the Brazilian market, this time with small- and medium-sized enterprises interested in following the path of the big multinationals attracted by the privatizations of the past decades. The visit happens at the same time of demonstrations, in Spain, of analysts and executives in favor of Brazil as the most attractive alternative to face the bad performance of the Spanish economy, the only one that keeps falling while the rest of Europe is recovering.
According to the Spanish Ministry of Foreign Affairs, 20% of the investments of the 35 biggest Spanish companies are in Latin America, 15% of which in Brazil. The good results of those companies already attract companies of smaller size, such as those that will take part, this Wednesday, in São Paulo, in a forum of investments of the Spanish Institute for Foreign Trade with Brazilians in at least 11 sectors, specially renewable energy industries, sanitation, construction, information technology, heavy industry and footwear.
The Spanish plan on producing, in Brazil, with Brazilian partners, from biofuels plants to remote reading devices for the water and energy services, industrial wheels, from forklifts to molded rubber soles. "The growth in the country turns Brazil into a fundamental destination for the Spanish companies", says the economist Juan Carlos Martínez-Lázaro, of the Instituto Escola Business School.
Even though big companies, like the main Spanish builder Ferrovial still bet mainly on the European market, the Spanish firms want to expand in Latin America, especially in Brazil, as showed the survey "2010: Panorama of the Spanish investment in Latin America", yet to be published, made by the IE Business School this year. Brazil is at a par with Mexico and it only loses to Chile in the preference as a place of operation of 33 of the 35 largest firms listed on the Spain Stock Exchange by IBEX35 index.