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2022 : Mina Gerais beats all the records of attractiveness

Posted 2022-01-27

Located in the north of the Southeast region and with Belo Horizonte as its capital, Mina Gerais has become a particularly attractive industrial and economic area in recent years.

Indeed, Minas Gerais breaks the historical mark of R$ 189 billion in investment attraction. The record achieved by the Government, through the Secretariat for Economic Development (Sede) and the Minas Gerais Investment and Foreign Trade Promotion Agency (Indi), shows the efficiency of the State’s economic development policies. Minas Gerais has accounted, in three years, for an amount that exceeds by 26% the total forecast for attracting investments estimated for the entire four-year management period, which was R$ 150 billion.

Many companies have chosen to invest in this region in order to continue their growth on Brazilian soil while taking advantage of the many attractions offered by the Minas Gerais region.  This is for example the case of Arcelor Mittal, Sowitec, and WEG, three behemoths that have recently chosen to invest in the region.

The steel giant chooses to invest in Mina Gerais

Expanding its production by millions of tons of steel and iron ore per year, ArcelorMittal announced the investment of R$ 4.3 billion in the strategic area of MG, promising to generate 7,500 new jobs.

ArcelorMittal announced last november that it will invest R$ 4.3 billion in its operation in Brazil from this year until 2024. According to the company, the investments will be made in the Monlevade Plant and in the Serra Azul Mine, both in Minas Gerais. After the investment, the plant will almost double its production capacity, from 1.2 million tons of crude steel per year to 2.2 million tons per year in 2024, also generating several new jobs. As for the Serra Azul Mine, its production will almost triple, going from 1.6 million tons per year to 4.5 million tons per year in iron ore, generating several new jobs.

The production increase target also projects the opening of new effective job openings. When the units are operating at their full capacity, in 2024, 1,350 new jobs will be created, which will be filled preferably by MG residents who live close to the units.

Mina Gerais, new nerve center for clean energy

Minas Gerais continues to receive important and large investments in clean energy. This time, the German company Sowitec announced investments of $ 5.2 billion for the implementation of three large projects in municipalities of northern Minas: two exclusively from solar photovoltaic source (President JK and Minas do Sol) and a hybrid source (Gameleiras), converging both for solar photovoltaic generation as for wind – one of the new bets of the state government, alongside the green hydrogen.

The full implementation of the projects is estimated to take place within two to four years, with a projected start in 2023. The first stage of the projects should come into operation by the end of 2024 and it is estimated that all stages will be completed by 2027. It is expected that 400 jobs will be generated during the implementation period.

According to Sowitec’s vice-director, Edgard Almeida, the company’s decision to invest in Minas Gerais occurred because of the state’s own differentials when it comes to sustainable energy sources. He highlighted the solar and wind energy potential of Minas Gerais, and said that the development of projects will not stop there.

The establishment of the Brazilian electrical equipment giant

Brazilian electrical equipment manufacturer WEG recently announced plans to invest in the mining region.

With a new plant in Betim, the company intends to strengthen its position in one of the most important markets for industrial electrical equipment and power generation in the country. Focused on the production of Electrocenters for solar and industrial generation, the new unit has 5,000 square meters of built area and will generate 100 new jobs in the next three years.

The company recalls the strategic stake and the pole of attractiveness that the region represents for the development of their own company : “The attractiveness of Minas Gerais as a location for WEG’s new investments was highlighted after a long analysis, which considered several alternatives throughout Brazil. Besides the support of the Minas Gerais State Government, through the State Investment Promotion Agency – INDI and Betim City Hall, we will count on an excellent market, a privileged location, access to strategic routes, a strong industrial culture, with an educational base and good quality technical and higher education courses, which guarantees us a qualified workforce”.

For the Brazilian giant, this new unit will be an important part of its production capacity in the coming years. It will also strengthen its position in one of the most important markets for electrical equipment for power generation and mining in the country.

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Author's post: Europartner Accounting

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