State Secretary Baeta enters into agreement to conduct a strategic study to promote companies in the ABC region

Initiative will boost the competitiveness of companies in the metal-mechanic industry in the ABC region of São Paulo

On October 23, the State Secretary for Economic Development, Science, Technology and Innovation, Nelson Baeta Neves Filho, entered into an agreement with the Association of Companies in the Metal Mechanical Industry in the ABC Region for the development of a strategic design study, with an investment totaling R$ 258,000.00. The initiative will benefit 3,746 formal establishments and more than 300 micro, small and medium enterprises of the Metal Mechanic Local Productive Arrangement (LPA) in the ABC Region, responsible for generating 145,000 jobs in São Paulo.

According to the secretary, the action will stimulate the production chain, strengthening the industry. “The project will stimulate the joint operation of companies to increase the participation in the domestic and foreign markets, contributing to the economic growth of the state and country,” he said.

The purpose of the project is to promote a favorable environment for the development of collective actions, leveraging them. Thus, it will enable business expansion and the implementation of activities aimed at enhancing the competitiveness of companies integrating the LPA in the ABC Region, covering the following cities: Santo André, São Bernardo do Campo, São Caetano do Sul, Diadema, Mauá, Ribeirão Pires and Rio Grande da Serra.

The project includes two phases. In phase 1, a technological X-ray will be developed to identify the bottlenecks and propose improvements for companies in the LPA. In phase 2, the information gathered will be included in the Guide of Opportunities, which will allow new business opportunities between companies in the LPA and access to new markets.

Although the automotive industry is in constant growth in the country, domestic companies do not take part in this evolution and have been losing share in the supply of parts and components for the vehicle industry. This situation ends up reducing the investment and modernization capacity of micro, small and medium enterprises. The globalization policy forces companies to create new strategies to avoid losing their global positioning, using associations in networks of enterprises.

Local Productive Arrangements (LPAs)

LPAs geographically concentrate micro, small and medium enterprises from the same sector or supply chain which, under a common governance structure, cooperate with each other and with public and private entities. This program is a milestone in the regional development policies of the State of São Paulo. The investments benefit approximately 14,500 micro, small and medium enterprises, including more than 350,000 jobs created in LPAs. The state recognizes in the ABC Region the LPAs in the Metal Mechanic, Processed Plastics, Cosmetics, Tooling, Defense and Furniture industries.

Projects of the Department in the ABC Region

In addition to the LPAs, the State Department of Economic Development, Science, Technology and Innovation supports other initiatives in the ABC region. The Technology Park of Santo André has already received R$ 330,000 in investments and is one of the initiatives accredited in the São Paulo Technology Parks System (SPTec). In addition to the provision of more than 10,000 job opportunities in seven cities, Via Rápida Emprego [Public Employment Program] offers a fixed unit for training courses in São Bernardo do Campo. The city of Diadema, Ribeirão Pires, São Caetano do Sul are integrated to the state licensing module of Via Rápida Empresa [Public Program for New Enterprises], which allows the opening of low-risk establishments within up to 5 days.

The online tool streamlines the issuance of operating licenses and permits of businesses by integrating state agencies and the municipal government. The service can be accessed on the website of the Trade Board of the State of São Paulo (Jucesp). For entrepreneurs from other cities, the state government has already released the same system for the automatic licensing (in less than 1 day) in the three state agencies (Fire Brigade, Health Surveillance and Cetesb) for low-risk enterprises. In this case, there will be no feasibility analysis prior to registration and the municipal licensing process is under the responsibility of municipalities.

Institutions associated to the department also provide support to actions in the ABC region. Universidade Virtual do Estado de São Paulo (UNIVESP) has classroom support centers for distance higher education courses in Santo André, São Caetano do Sul and Diadema. Centro Paula Souza has five Schools of Technology (Fatecs) and the facilities of the seventh State Technical School (Etec) in the region were delivered yesterday by Governor Geraldo Alckmin in Rio Grande da Serra. Investe SP offered support for the settlement of two companies: Paranapanema in Santo André, which invested R$ 72 million and created 450 jobs; and Termomecânica, which expanded its plant in São Bernardo do Campo, with an investment of R$ 300 million, creating 70 direct jobs.

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