Announced investment by Chinese companies in Brazil in July/August totals US$78.3 million

25 October 2018

Two investment projects by Chinese companies in Brazil were confirmed in July/August, while two others were announced, according to a ministerial source in Brasilia.

The latest bimonthly newsletter on Chinese investments in Brazil released by the Office for International Affairs of the Ministry of Planning, Development and Management also reported that including both confirmed and announced projects investment totals US$78.3 million.

The Fosun group invested a confirmed US$52 million in the acquisition of the brokerage company Guide, while GsPAK, a company specialising in food packaging, announced an investment in a greenfield project expected to create 400 jobs in the state of Alagoas.

The other two projects, one confirmed and one announced, involve Sanxing Electric, of the AUX group, and Bitmain, a producer of equipment for mining of virtual currencies. No investment amount have been announced for either project.

Sanxing Electric paid an undisclosed amount for the 49% stake it still did not own in mining company Nanssen.

The Department of International Affairs of the Ministry of Planning, Development and Management revealed that when it acquired the 51% stake the Chinese company paid about 30 million reais (about US$8 million).

Bitmain, meanwhile, announced the opening in 2018 of an office in Brazil to expand its business, but did not disclose the amount it planned to invest in the country.

The Office for International Affairs reported that after the close of the July/August newsletter the HNA Group announced the cancellation of an investment in 2017 in the amount of 60 million reais (about US$16.2 million) ), in which the group planned to buy the 31% stake of the Odebrecht group in the RioGaleão consortium.

The completion of the deal was announced in July 2017 but the 31% stake held by Odebrecht Transport, the logistics arm of the Brazilian group Odebrecht ended up being purchased by Singapore airport operator Changi Airports International, with the remaining 49% in the hands of state-owned Brazilian airport management company Infraero, established in 1972 to operate the country’s main commercial airports. (macauhub)