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GT ISYE 6203 - LECTURE NOTES

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MANAUS FREE TRADE ZONE ZFM DECREE N 288 OF FEBRUARY 28 1967 Industry Article 1st Free trade area of import and export and of special tax incentives established with the purpose of creating inside of the Western Amazon Farming and Agriculture Commerce BRAZILIAN AMAZON represents more than 59 of national territory Mineral Resources Equivalent to 80 of the Petroleum South American Amazon Gas 21 04 millions of inhabitants 1 5 of the primary green Bauxite 20000 Km of water ways forests of the world Cassiterita Ni bio Tropical humid weather 26 C a 36 C others 5 03 millions of Km2 AREA OF OPERATION DESCENTRALIZED UNITS Free Trade Areas 03 Regional Coordinations 07 FISCAL INCENTIVES COMPENSATIONS DEMANDED BY THE MODEL In order to obtain the approval of industrial projects with annual limits of import by the Administration Council composed by members of 10 Ministries of the Brazilian Government the following itens should be observed Execution of Basic Productive Process Job creation in the area with the concession of social benefits to the workers Complience with demands of product technology incorporation and of compatible production process with the state of art Permanent trainning of the workforce in order to obtain growing levels of productivity seeking increasing competitiveness Reinvestment of profit in the region Investment for scientific and technological development MANAUS INDUSTRIAL DISTRICT MANAUS INDUSTRIAL DISTRICT S LOCATIONAL INCENTIVES SOME OF THE OVER 400 MAIN CORPORATIONS STABLISHED IN MANAUS INVESTMENT BY U S COMPANIES AVX COMPONENTES DA AMAZ NIA LTDA BAHIA SOUTH IND STRIA DA AMAZ NIA LTDA PROCOMP AMAZ NIA IND STRIA ELETR NICA LTDA PROSYS IND E COM DO AMAZONAS LTDA RECOFARMA IND STRIA DO AMAZONAS LTDA BRASPOR MADEIRA LTDA REXAM AMAZ NIA LTDA CLIMAZON INDUSTRIAL LTDA RIGESA DA AMAZ NIA S A COMPANHIA BRASILEIRA DE BEBIDAS CROWN TAMPAS DA AMAZ NIA S A D D WILLIAMSON DA AMAZ NIA LTDA ROYAL MAX DO BRASIL IND STRIA E COM RCIO LTDA SAMSUNG SDI BRASIL LTDA SONY BRASIL LTDA SONY MUSIC ENTERTAINMENT BRASIL INDUSTRIA E COM RCIO LTDA ENVISION INDUSTRIA DE PRODUTOS ELETR NICOS LTDA SONY PLASTICOS DA AMAZ NIA LTDA FBL EQUIPAMENTOS E ACESSORIOS PARA ESCRIT RIO LTDA TECAL ALUM NIO DA AMAZ NIA HARLEY DAVIDSON DO BRASIL LTDA THOMSON MULTIMIDIA LTDA TRIPLE S COSMOPLAST DA AMAZ NIA LTDA INTESYS METAGAL DA AMAZ NIA IND E COM LTDA VISTEON AMAZONAS LTDA INVENSYS APPLIANCE CONTROLS DA AMAZ LTDA XEROX COM RCIO E IND STRIA LTDA JAPANCOLOR DA AMAZ NIA INDUSTRIA E COM RCIO LTDA KODAK DA AMAZ NIA IND E COM LTDA MIKROTONER QU MICA DA AMAZ NIA LTDA MOLEX BRASIL LTDA NIDALA DA AMAZ NIA LTDA PC MICRO IND STRIA E COM RCIO LTDA PROCOMP AMAZ NIA IND STRIA E ELETR NICA LTDA INVESTMENT US 515 879 031 MANAUS INDUSTRIAL DISTRICT RESULTS ELECTRONIC PRODUCTS 31 00 WATCHES 1 00 TWO WHEELED VEHICLES 15 00 CHEMICAL PRODUCTS 11 00 OTHERS 6 00 Sales in 2003 METALURGY 6 00 THERMOPLASTIC PRODUCTS 6 00 T I GOODS 22 00 Sales US 10 5 Billions Work force 64 591 Exports in 2003 totaled US 1 3 Billion MANAUS INDUSTRIAL DISTRICT Labor Evolution Source SUFRAMA Data until April Direct and Indirect Jobs 427 thousand SOCIAL BENEFITS Social benefits awarded to the workers are Education Transportation Meals Medical Hospital Plan Dental Plan Day care and fun centers Social Security EXPORTS GROWTH IN US MILLIONS Source SUFRAMA SISTEMA ALICE Data until April MAIN PRODUCTS EXPORTED IN 2003 1 CELLULAR TELEPHONE 2 MOTORCYCLES 3 COLOR TV s 4 CONCENTRATE FOR SOFT DRINKS 5 KINESCOPE FOR COLORED TV 6 NON ELECTRIC SHAVERS 7 AIR CONDITIONER 8 DIGITAL SIGNAL DECODER 9 RAZOR BLADES 10 PARTS AND ACESSORIES FOR XEROX MACHINES 11 COLORED FILMS MAIN DESTINATION OF EXPORTS IN 2003 US MILLIONS E U A 756 400 58 19 COL MBIA 71 500 5 50 M XICO 61 549 4 73 PERU 34 984 2 69 ARGENTINA CHILE 43 208 3 32 116 732 8 98


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GT ISYE 6203 - LECTURE NOTES

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