Northeast Brazil recruiting plastics processors

Bob Moser
PLASTICS NEWS

Published: May 23, 2013 4:05 pm ET
Updated: May 23, 2013 4:07 pm ET

Related to this story

Topics Latin America, Expansions, Government & Legislation

SÃO PAULO, BRAZIL — Vast stretches of cheap, undeveloped land and ports free of the congestion that plagues southern Brazil are drawing major plastics companies to the northeastern states of Alagoas and Bahia to expand production.

Aggressive tax incentives and a focus on business-friendly policies have helped set these states apart in Brazil, executives say.

Braskem SA will invest more than BRL1 billion ($488 million) in projects in Bahia, state officials said outside Braskem's stand this week at Feiplastic in São Paulo. The company has six production plants in Bahia, and four in neighboring Alagoas.

Brazil currently ranks as the No. 6 country in the world for plastics industry sales, and Bahia is home to about 2.5 percent of the more than 11,500 plastics processing businesses in Brazil. The state government is actively trying to attract more companies, using Braskem's anchor status there and tax incentive offers that few Brazilian states can match.

BASF is currently investing BRL1.2 billion ($585.5 million) in a new facility in Bahia that should begin operations in 2014. The impact of the German multinational's arrival could spur development of more acrylics business in the state.

For the third consecutive edition of Feiplastic (formerly Brasilplast), Alagoas is the only Brazilian state to host a stand and attempt to woo plastics companies to move production there. The effort seems to have worked, as Alagoas has drawn around 20 mid-sized and large companies to relocate to the state or build new production facilities over the past six years.

With Braskem again serving as anchor, Alagoas has drawn producers of PVC tubing and connectors like Krona and Amanco to set up shop. Braskem has also helped encourage some major buyers of raw materials it produces in Alagoas to expand in the state.

Alagoas state government has been providing tax incentives and help in procuring financing for companies. State officials have been successful in part by establishing well-defined policy incentives for the industry that they ensure won't change every few years, as occurs in other Brazilian states.

São Paulo-based Multibrink, a producer of plastic toys and child-care goods, entered this year considering expansion in Brazil's northeast, with up to BRL90 million (US$43.9 million) to invest in a plant that would require 100,000 square meters.

"We've researched our options, and concluded that Alagoas is a good choice for investment in the northeast," said Cesar Vieira, Multibrink president. "With a policy of attractive incentives and the care we'll receive from the government of Alagoas, we were very excited to make an official proposal."

Brazilian multinational Grupo Tigre, a producer of PE and HDPE tubing for drainage, sanitation, telecom and agriculture, has already begun construction on a new plant in Alagoas that should start operations in September. Through a joint venture with American firm Advanced Drainage Systems Inc., Tigre-ADS will produce HDPE tubing lines for sanitation and drainage of up to 1,200 mm in diameter.


Comments

Northeast Brazil recruiting plastics processors

Bob Moser
PLASTICS NEWS

Published: May 23, 2013 4:05 pm ET
Updated: May 23, 2013 4:07 pm ET

Post Your Comments


Back to story


More stories

Image

Hyundai Mobis investing $24 million to expand in Slovakia

January 22, 2015 9:28 am ET

South Korean auto parts maker Hyundai Mobis has unveiled plans to invest about 21 million euros ($24.1 million) to modernize and expand the output...    More

Image

Next Generation Films investing $30 million in Ohio expansion

January 20, 2015 4:44 pm ET

Next Generation Films Inc. is betting $30 million on growth in specialty films.    More

Image

Braskem invests $19 million to meet Brazil’s LLDPE demand

January 19, 2015 3:56 pm ET

SÃO PAULO — Braskem SA recently concluded a nearly $19 million-investment in Brazil that should allow it to meet the entire country’s...    More

Image

Film machinery supplier Xerium to upgrade two plants

January 16, 2015 9:23 am ET

Xerium Technologies Inc. will expand two plants to enhance its rolls products and mechanical services capabilities for the North American market.    More

Image

India's Motherson builds car mirror molding plants in Michigan, China

January 15, 2015 5:12 pm ET

Global auto parts molder Samvardhana Motherson Reflectec is spending $40 million on a plant expansion in Michigan that will nearly double its North Am...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events