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  The Industry


Industrialization in Espírito Santo began in the beginning of the 20th century. In the 1950s a development process was articulated in the state with the metallurgical, iron & steel, and metal-mechanic industries, reaching large projects and leading to one of the strongest and most important sectors of the State's economy today.

In the state of Espírito Santo, the metal-mechanic industry involves different segments of the local economy, including:

Mining, comprised, among others, by companies Vale and Samarco, among the world's largest iron ore and pellet exporters. The mining complex is comprised of pellet plants, railways and ports.

Metallurgical production with several cold conversion companies producing serial components, and in particular, equipment and components supplied on demand to meet the investments and spare parts in the facilities of the major companies installed in the state.

Iron & steel production comprised of the plants of ArcelorMittal Tubarão, and the pig iron mills, the state is ranked as the 3rd Largest Producer of steel in Brazil. Its plants are internationally renowned for having achieved excellent indexes, especially in terms of quality, productivity, safety and the environment.

Services comprised of companies that serve the major projects, providing electromechanical erection and maintenance, and industrial automation.

Machine Manufacturers that have evolved based on the demand for the manufacturing of machines to satisfy the marble and granite industry.

The metal-mechanical industry in Espírito Santo has taken a more definite shape, promoting organized actions with companies in order to improve the quality of the products and services offered, investing in technological upgrade and supporting conjunct efforts toward the professional training of labor.

In the early 1990s the participation of the local supply companies in large contracts with large companies was less than 1%. In 1997, it rose to 8.5%, reaching 35% in the construction of Plant C of former Aracruz Cellulose, today Fibria.

Followed by the recent expansion of the Oil and Natural Gas industry in 1998 with several discoveries in the state, revealing its huge potential in the state’s industry. Petrobras announced a total investment amounting US$ 8.1 Million in Exploration and Production (E&P) in Espírito Santo for the period from 2007 to 2011.

Espírito Santo holds the largest iron ore pellet production complex in the world; it is the largest national producer of steel sheets; the largest marble and granite exporter in Latin America; the first world producer and exporter of bleached short fiber cellulose; the second national papaya producer; the second largest national coffee producer; the second largest national chocolate producer.

Highlight goes to the installation of the Iron & Steel Pole of Anchieta in the south of the State, through CSU - Companhia Siderúrgica de Ubu, Project implemented by Vale, with a production capacity of 5 million t per year in sheets, and investment of US$ 3 billion, generating 18 thousand jobs on average during the construction period.

The expansion investments in the plants and installation of new industrial units amount R$ 58 billion in the next 5 years, generating an average of 22 thousand jobs during the construction works, which should allow local companies of the metal-mechanical sector to receive orders.

The metal-mechanical industry incorporates all of the segments responsible for the conversion of metals, including the production of goods and intermediary services, as well as machinery, equipment, transportation vehicles and materials. Based on the National Corporate Activities Classification (“CNAE”) of the Brazilian Geography and Statistics Institute ("IBGE"), the metal-mechanic industry includes nine sectors, but the activities developed in the state are:

- Basic Metallurgical Production;
- Manufacturing of metal products for machines and equipment;
- Manufacturing of machines and equipment;
- Manufacturing of machines, electrical appliances and materials;
- Services pertaining to electronic materials, communications appliances and equipment;
- Manufacturing of other transport equipment.

This wide variety and diversity of products and services offered reflects also on the complexity of its production chain and in the characteristics of its industrial structure, participating in major multinational companies with substantially high scale economies, as well as micro and small scale companies of local and regional base.
There are currently 152 local companies in the sector, employing over 21 thousand people directly and 100 thousand indirectly, with turnover of over R$ 1 billion per year.


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