Mato Grosso do Sul, Brazil, plans to attract the factories of Portugal’s Portucel

19 June 2009

Campo Grande, Brazil, 19 June – The Brazilian state of Mato Grosso do Sul is vying with Uruguay and Mozambique to house two large paper factories of Portugal Celulose (Portucel), according to news website Campo Grande News, which cites state goevrnor André Puccinelli.

The governor, who had just returned from a trip to Portugal, said he was optimistic about Portucel’s decision but warned that the announcement of the location of the factories was unlikely to be made over the next three months.

At his meeting with Portucel officials, Puccinelli handed over benefit proposals from four municipalities in the state interested in receiving a factory as well as over 400 soil analyses carried out by Empresa Brasileira de Pesquisa Agropecuária (Embrapa) and a sirvey of the logistics situation in Mato Grosso do Sul, as well as road, rail and river accesses.

The proposals presented by the four municipalities include service tax exemptions, exemptions on IPTU (urban and property tax), land tax, amongst other incentives, to attract the Portucel project.

The governor said that Portucel had amde four visits to the state and, although there was, as yet, no information about the amount of investment, he said that it was comparable to that of Votorantin Celulose in Três Lagoas, which created 2,200 direct jobs and a further 15,000 indirect jobs. (macauhub)