Category Archives: Brazil

What Brazil needs to really grow

By Solange Monteiro

MArcaFGV_IBRE_endossopaulo starkResilience and flexibility seem to be core beliefs of moderate optimist Paulo Stark, CEO of Siemens Brazil, when he talks about his business and Brazil’s economy. Stark, an engineer who began his career with Siemens more than two decades ago, sees investment intentions being rethought as a result of the escalation of the crisis of state-owned oil company Petrobras, which could benefit the logistics and electricity sectors. “That will cause a gap until new projects are developed, but it is not a permanent problem,” he says. However, to encourage new investments, he advocates both a concession model more open to private capital and longer-term planning for major infrastructure projects: “Sometimes we have the impression that Brazil needs a crisis to take a leap forward; now’s the time to jump to avoid being run over.” Continue reading

Where does Rio go next?

By Solange Monteiro

MArcaFGV_IBRE_endossoRio de Janeiro city celebrates its 450th birthday this month amid questions about what permanent gifts the World Cup, Olympics, and discovery of deep-sea oil will leave for the city. Between announcements of huge investments and ambitious revitalization plans on the one hand and inflation above the national average eroding the purchasing power and optimism of both locals and visitors from other countries on the other, there are many questions about how sustainable the recovery of the economy of Rio de Janeiro is. Continue reading

Economic Climate Index for Latin America falls

MArcaFGV_IBRE_endossoThe Ifo/FGV Economic Climate Index for Latin America (ECI) – developed in partnership between the German Ifo Institute and the FGV taking as a data source the Ifo World Economic Survey (WES) – decreased by 6.3%, going to 75 points in January 2015 from 80 in October 2014. The decline stems from worsening of both ratings in relation to the current state of business and the expectations for the coming months: the Present Situation Index (PSI) fell 9.4% and the Expectations Index (EI) decreased 4.2%. All indicators are in unfavorable zone of the cycle and the general worsening means advance in the deterioration of the economic climate. Continue reading

Braskem Records R$ 46 billion revenue in 2014

braskem-logoThe largest petrochemical company in the Americas and global leader in biopolymer production, Braskem operated its petrochemical centers at an average use rate of 86% in 2014. This rate dropped four percentage points compared to the previous year, justified by the schedule maintenance shutdowns of the Triunfo (RS) and Mauá (SP) crackers and due to restrictions on the gas supply at the Duque de Caxias Center (RJ) during the first half of the year. Continue reading

Brazil’s Grupo CBO selects Huisman Equipment

huismancranesIn January 2015, Huisman, the worldwide specialist in lifting, drilling and subsea solutions, and Brazilian shipping company and shipyard group Grupo CBO, signed a contract for the delivery of four anchor handling and towing winch packages for four new Havyard 843 AHTS vessels. The winch packages will be built by Huisman’s new production facility in Navegantes, Brazil, and delivery is planned for 2016 and 2017. The winches will be delivered with 50% Brazilian content. The Havyard designed 843 AHTS vessels will be built by Estaleiro Aliança (2x) and Estaleiro Oceana (2x). Continue reading

SBM Offshore performed well in 2014

sbmSBM Offshore ended 2014 with a good underlying financial performance, ahead of expectations for the second straight year. The company reached an important milestone in announcing an out-of-court settlement agreement with the Dutch Public Prosecutor’s Office (Openbaar Ministerie) over the inquiry into alleged improper payments, whilst the US Department of Justice declined to prosecute and has closed its inquiry into the matter. This marks a big step forward in putting the company’s legacy issues to rest. Continue reading

SBM Offshore Reintroduces COO Position

sbmSBM Offshore announced today the appointment of Philippe Barril as Chief Operating Officer (COO) effective March 1, 2015. Philippe’s appointment as a member of the Management Board is subject to approval at the Annual General Meeting of Shareholders to be held on April 15, 2015. Continue reading

Brazil’s 2015 economic outlook: Rebalancing will not be easy

By Solange Monteiro
MArcaFGV_IBRE_endossoDramatic events in the second half of 2014 transformed the scenario at the turn of the year in Brazil into a big question mark. The fierce presidential race, the deterioration of economic indicators, and allegations of corruption at state-owned oil company Petrobras heightened the already anxious expectations about 2015. Can the course of the country be corrected under the same leadership amid political tensions? Continue reading

IHC acquires Brastec Technologies, Brazil

ihcRoyal IHC (IHC) has acquired a majority stake in Brastec Technologies, based in Brazil. Brastec Technologies designs and builds value-added, tailor-made production lines for the production of umbilicals and flexible pipes. This agreement fulfils two important elements of IHC business strategy: a foothold in the important Brazilian market; and the acquisition of Dutch-based SAS Offshore, which was fully owned by Brastec Technologies. Continue reading

Brazil Inflation: Nowhere to go but up?

By Thais Thimoteo

logoFGVIf in 2013 producers and consumers split the cost of price increases evenly, in 2014 the cost of inflation has fallen squarely on the consumer. Through November 2013 12-month inflation went up to 5.6% as measured by the General Price Index 10 (IGP-10) calculated by the Brazilian Institute of Economics, Getulio Vargas Foundation (IBRE/FGV); the Producer Price Index (IPA) was 5.2% and the Consumer Price Index (IPC) 5.4%. This year, prices of farm products rose only 1.7% but the cost of the goods on supermarket shelves went up 6.6%. The difference between producer and consumer inflation lies with inflation of services, which has been stubbornly high, and adjustment of controlled prices. Continue reading

SBM settles Angola, Brazil corruption affair

sbmSBM Offshore has reached an out-of-court settlement ex Article 74 of the Dutch Criminal Code with the Dutch Public Prosecutor’s Office (Openbaar Ministerie) over the inquiry into alleged improper payments.  Furthermore, the United States Department of Justice has informed SBM Offshore that it is not prosecuting the Company and has closed its inquiry into the matter. The settlement with the Openbaar Ministerie and the United States Department of Justice’s decision relate to payments to sales agents in Equatorial Guinea, Angola and Brazil in the period from 2007 through 2011. Continue reading

OECD urges Brazil to tackle foreign bribery

logooecd_enBrazil must build on the positive momentum started with its new Corporate Liability Law and its first indictments in one foreign bribery case to investigate and prosecute more proactively foreign bribery. Since Brazil joined the Convention in 2000, of the 14 allegations identified in the report, only five have been investigated and three investigations are still ongoing – a very low number in light of the size of Brazil’s economy. Continue reading

A glimpse of Brazil after the elections

By João Augusto de Castro Neves of the Eurasia Group

logoFGVBrazil is witnessing one of the most competitive and thrilling presidential elections in nearly a quarter of a century. In the last three months, polls had the three candidates alternating in the lead. Now, with the second-round runoff between President Dilma Rousseff (Workers’ Party, PT) and Senator Aécio Neves (Brazilian Social Democratic Party, PSDB) close to a toss-up, it’s useful to take a step back to get some perspective on the challenges for the next administration. No matter who wins on  October 26 , the post-election landscape will be as difficult for the next president as the election is electrifying for the candidates. Continue reading

Atlantico Business Development expands services

abd logoAtlantico Business Development, an international consultancy based in Rotterdam and focused on doing business in Brazil and Portuguese speaking Africa, is expanding its services. A full overview of Atlantico’s services as well as the markets where the company operates presently is available at their website, Atlantico Business Development.

New services include among other things “partner and agent search”, which is extremely important for SME’s when doing business in faraway and high cost markets such as Brazil, Angola and Mozambique.  No doubt Atlantico Busines Development will live up to its slogan “trusted, dedicated and effective” regarding this service as well.

Global growth continuing at a moderate pace

logooecd_enA moderate expansion is underway in most major advanced and emerging economies, but growth remains weak in the euro area, which runs the risk of prolonged stagnation if further steps are not taken to boost demand, according to the OECD’s latest Interim Economic Assessment. Continue reading

Van Oord gets orders in Brazil and Bahamas

logo-vanoordVan Oord has won two orders in Brazil and the Bahamas. The activities involve dredging work for the construction of a new shipyard in Aracruz, Brazil. The client is Estaleiro Jurong Aracruz (EJA), a Brazilian subsidiary of Sembcorp Marine’s Jurong Shipyard from Singapore. In the Bahamas, three ports will be upgraded on the instructions of the Ministry of National Security as part of the Sandy Bottom Project. Both orders have a joint contract value of more than EUR 100 million The execution of both projects has already started. The project in Brazil will be completed in late 2014. The work in the Bahamas will be completed in early 2016.

Continue reading

Rotterdam to develop Brazilian greenfield port

portocentralOn 29 April the Port of Rotterdam Authority and TPK (Terminal Presidente Kennedy) Logistica signed a joint venture agreement in Vitória, Brazil for the development of Porto Central, a new port in Brazil. TPK Logistica is owned by a group of Brazilian companies with a great deal of experience in the mining, construction and offshore sectors. Continue reading

CMM takes delivery of first Damen PSV 3300

Damen_Platform_Supply_Vessel_3300CMM has taken delivery of a Damen Platform Supply Vessel 3300. The 80-metre, 3,300t deadweight vessel CMM Gravity will be deployed in the Brazilian waters from June 2014 on a 4+4 year contract with Petrobrás. Continue reading

Brazil’s Next 10 Hottest Business Cities – 2014 Edition

By Arnout Nuijt

sorocaba city hall 2014 EDITION – Ever heard of Uberlândia, Joinville, Ribeirão Preto, Sorocaba or Londrina? Well, you may soon, as they are among Brazil’s next generation of big business cities. No doubt the biggest and most important business centres of Brazil are still the megacities of São Paulo and Rio de Janeiro. Further afield, most other state capitals full fill their role as the country’s other main economic centres: Belo Horizonte, Salvador da Bahia, Recife, Fortaleza, Curitiba and Porto Alegre. These are the cities that are dominating Brazil’s economic development. On top of that most of these capitals will be in the world’s spotlight as host cities of the 2014 World Cup and Rio will even host the Olympic Games of 2016.

But Brazil is big and there are plenty of other fast developing cities that have become important business hubs over the years and will be ever more important in the future. They did not get there with soccer tournaments or because held their state’s government, but by generating strong growth in private sectors such as agribusiness, oil & gas, industries, IT and ports & logistics. This is the third or 2014 edition of Brazil’s Next 10 Hottest Business Cities and it comes with a change: the city of Sorocaba has entered this exclusive list for the first time. The Sorocaba region received a lot of foreign investment lately. This of course means another city was dropped from the list: Campos, due to the problems of Eike Batista’s business empire, the main investor in the region. So for a minute forget São Paulo, Rio and those other 2014 World Cup host cities, as here come Brazil’s Next 10 Hottest Business Cities: Continue reading

Why is Brazilian productivity so low?

latamFor decades low productivity has been responsible for the poor performance of Brazil’s gross domestic product (GDP). Today, FGV-IBRE’s The Brazilian Economy reports, increasing productivity -which rebounded slightly last year but is still far from stellar – is more urgent if the country wants to achieve more robust economic growth without pressure on wages and inflation, because the labor force is expected to decline as the population ages. Continue reading

SBM Offshore presents results of internal investigation on bribery allegations in Angola, Brazil

sbmSBM Offshore presented today the findings of its internal investigation, which it started in the first quarter of 2012, in reaction to allegations of bribery in Brazil, Angola and other countries. The investigation, which was carried out by independent external counsel and forensic accountants, focused on the use of agents over the period 2007 through 2011. In summary, the main findings are that “the Company paid approximately US$200 million in commissions to agents during that period of which the majority relate to three countries: US$18.8 million to Equatorial Guinea, US$22.7 million to Angola and US$139.1 million to Brazil.” Continue reading

Chinese COFCO takes controlling stake in Nidera

nideraCOFCO Corporation, the largest grain, oil and foodstuff company in China, and Nidera, a global commodity trader and agribusiness company headquartered in the Netherlands, signed an agreement, pursuant to which COFCO will acquire 51% of Nidera to establish a strategic partnership with this major player in the agricultural market with an annual turnover in excess of USD 17 billion. The envisaged transaction will provide Nidera with great potential for growth in the Chinese market and also strengthen COFCO’s position as a key player in the global agricultural industry through access to Nidera’s global origination and trading network and its fast growing seed business. Continue reading

EU maintained trade surplus with Brazil in 2013

eubrasilEU28 exports to Brazil in 2012 amounted to 39.7 billion euro and imports to 37.4 bn. The EU28 registered a continuous deficit in trade in goods with Brazil up to 2011, with a peak in 2007, turning to a surplus of 2.3 bn in 2012. The first nine months of 2013 confirm the most recent trend, with EU28 exports to Brazil continuing to increase, from 29.6 bn euro in the first nine months of 2012 to 30.4 bn in the same period of 2013, while imports continued to fall, from 28.8 bn to 24.9 bn over the same period. As a result, the EU28 surplus in trade of goods with Brazil of 0.8bn in the first nine months of 2012 increased significantly to 5.5 bn in the same period of 2013. Continue reading

IHC Merwede launches Sapura Topázio

topazioIHC Merwede has successfully named and launched the pipelaying vessel Sapura Topázio in a ceremony at the company’s shipyard near Rotterdam. is the second in a series of five fully integrated offshore vessels, which will be completely designed, engineered and built by IHC Merwede. Continue reading

Has Brazil really entered recession? Then here is what to do

By Arnout Nuijt

brazilianflagPositive news about Brazil’s economy is hard to find these days. In fact the bad news is piling up. A recent report by the Financial Times of London, quoting Brazil Central bank figures, suggests the country has entered technical recession more than 7 months ago by shrinking slightly for two consecutive quarters in 2013. Another report in the same publication expressed worries about what harm a recession may do to Brazil’s housing bubble. So how serious should you take these reports and what can you do to protect your business in Brazil? Continue reading

LatAm economic climate improves, Brazil’s worsens

latamThe Ifo/FGV Economic Climate Index for Latin America (ECI)  advanced, after having been stable in the last two surveys (July and October 2013). The 8% increase in the ECI (to 95 from 88 points) is explained by both the improvement in assessments of present conditions (PSI) and expectations (EI), but only the latter one went to the zone of favorable assessment. Furthermore, all three indicators are below the average of the last 10 years and, in addition, the region still has to improve its performance to ensure a stable growth trajectory. However, the result does not generalize to all countries in the region. Continue reading

World Bank improving Rio Public Service Delivery

rioMore than 16 million people living in the Rio de Janeiro State will benefit from a new US$48 million loan approved today by the World Bank Board of Directors. The loan will finance a project designed to improve the delivery of public services. The Rio State Strengthening Public Management and Integrated Territorial Development Technical Assistance Project will provide technical assistance for the development of fiscal and infrastructure reforms designed to achieve better integration between the 19 municipalities of Rio de Janeiro’s Metropolitan Area. It will also support the installation of an early warning system for heavy rainfall events that will cover all municipalities of the State. Continue reading

SBM Offshore reacts to corruption allegations

sbmLate last week Dutch media began reporting on alleged corruption practices involving SBM Offshore deals in Brazil, Angola, Equatorial Guinea and other countries. The info was apparently published by a former employee of the company on the SBM Offshore company profile page on Wikipedia. On Friday February 7th, the company issued the following statement: Continue reading

SBM Offshore reports Full Year Results for 2013

sbmSBM Offshore finished 2013 with a strong underlying financial performance, ahead of expectations. The Company has now put most of its legacy projects to rest, secured the balance sheet and refocused its activity around the FPSO-led strategy. Directionalrevenue increased 13% to US$3,445 million, while Directional backlog reached US$23 billion. This was reinforced by strong operational performance with consistently high uptime across the fleet of over 99%. Three prestigious FPSO awards were won during the year (Cidade de Maricá, Cidade de Saquarema and FPSO Stones), two FPSOs (Cidade de Paraty and OSX-2) were delivered on time and on budget and Deep Panuke platform reached full production capacity and is now fully on hire.  Continue reading

New Shell CEO updates company’s priorities

shellSpeaking to investors today, new Shell CEO Ben van Beurden updated on the company’s priorities: improving Shell’s financial results and achieving better capital efficiency, as well as continuing to strengthen operational performance and project delivery. Continue reading

Shell to sell interest in offshore Brazil BC-10

shellShell announced an agreement to sell a 23% interest in the Parque das Conchas (BC-10) project offshore Brazil to Qatar Petroleum International for approximately US $1 billion, subject to closing, The transaction is subject to approval by the National Petroleum and Gas Agency (ANP, Brazil’s Oil and Gas regulator) and the Administrative Council for Economic Defense (CADE, anti-trust authority). Continue reading

Brazilian Economy: The Price of Violence

logoFGVBrazilians see themselves as cheerful, hospitable, and peaceful, yet this picture is contradicted by data on violence and crime. Brazil is the 18th most violent nation in the world, according to the Avante Brasil Institute. The 2013 Human Development Report of the United Nations Development Programme (UNDP) pointed out that insecurity is an obstacle to economic and social development in Latin America, and warned that crime control measures alone are not sufficient; what is needed are public policies for more inclusive economic growth and effective security and justice institutions. In particular, Brazil must care for the youth. Continue reading

World Bank warns of emerging markets risks

worldbank-logo-enThe world economy is projected to strengthen this year, with growth picking up in developing countries and high-income economies appearing to be finally turning the corner five years after the global financial crisis, says the World Bank’s newly-released Global Economic Prospects (GEP) report. The firming of growth in developing countries is being bolstered by an acceleration in high-income countries and continued strong growth in China. However, growth prospects remain vulnerable to headwinds from rising global interest rates and potential volatility in capital flows, as the United States Federal Reserve Bank begins withdrawing its massive monetary stimulus. Continue reading

Vale China unloads billionth ton of ore at Rotterdam’s EMO

emoEMO hit a new dry bulk discharge record on January 14th, 2014, with the billionth tonne of dry bulk. A milestone for Europe’s largest dry bulk terminal has been reached. Forty years ago, EMO unloaded its first tonne of iron ore (November 28th 1973). Now the terminal has reached the billion tonne mark. The honour goes to the Vale China. The Vale China, with its 375,000 tonnes of iron ore, is one of the largest dry bulk vessels in the world. The vessel is 362 metres long, 65 metres at the beam, and has a draft of 23 metres.Using three 85-tonne grab unloaders, it takes approximately four days to unload the Vale China. Thanks to EMO’s unloading capacity and draft, the EMO terminal is an ideal destination for this huge bulk vessel (EMO).

Shell increases interest in offshore Brazil’s Parque das Conchas project

shellShell announced it has completed the acquisition of an additional 23% interest in the Parque das Conchas (BC-10) project offshore Brazil for US $1 billion. Regulatory approvals have been obtained and Shell will now hold a 73% operating interest. The purchase is effective January 1, 2013. Partner ONGC, previously holding a 15% working interest, will now hold a 27% working interest. This purchase is the result of pre-empting a third party’s bid for Petrobras’ 35% interest in BC-10. Continue reading

Rediscovering the Americas: The World’s 15 Best Countries for Business in 2014

terminalThe US, Germany, Poland and Mexico are among next year’s Best Countries for Business. Rotterdam Week in cooperation with Atlantico Business Development (an international consultancy based in Rotterdam) has selected the best 15 markets of 2014/15 for your direct investment or for exporting your products. Continue reading

Brazil’s 2014 elections already face headwinds

By Fernando Dantas

logoFGVAs Brazil prepares for election year 2014, economic uncertainty is pervasive. It is likely that 2014 will not be as spectacular as 2010, but forecasts of what will actually happen vary considerably. On the negative end, Brazil would encounter a perfect storm that might combine one or more downgrades of its sovereign rating with a steep devaluation of the exchange rate in the wake of rising U.S. interest rates. The most optimistic scenario anticipates a gradual recovery in economic growth, and inflation still below the government inflation target ceiling of 6.5% a year. Continue reading

For 2014 Brazilian businesses expect to invest less and gain less

logoFGVThe October-November 2013 edition of the Investment Survey by the Getulio Vargas Foundation has obtained data from Brazilian industrial companies on the development in 2013 and expectations for 2014 regarding variables such as investment, employed personnel and sales. 758 companies were consulted, responsible for sales of R$ 534 billion.  Continue reading

Latin America to grow by 3.2% in 2014

latamThe economies of Latin America and the Caribbean will expand by 3.2% in 2014, which is higher than the 2.6% performance of 2013, according to a new ECLAC report launched today at a press conference in Santiago, Chile. Panama will lead the pack with a growth rate of 7% in 2014, while powerhouses like Brazil and Mexico are predicted to grow at 2,6% and 3,5% respectively. Continue reading

ISO 9001 certification for Nidera Sementes Brazil

nideraAfter almost 3 years of hard work and preparation, Nidera Sementes in Brazil announced that they have been granted an ISO 9001 certification. An audit by SGS found their quality management system in full compliance with ISO 9001:2008 standards this past month, which is the culmination of a process that was started at the beginning of 2011. With this system, it is possible to manage and control the quality of company transactions, raise awareness about all organizational processes, achieve continuous development and ensure customer satisfaction. Continue reading