The charms of Brazil attracts UK business
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...FDI projects) from the UK in 2011. However, the most lucrative UK investments, in terms of value and job creation, were in the mining and metals industry — with 12,482 jobs created and a total value of US$8.63b for six projects. This was boosted by the US$5b investment by Mir Steel UK into a joint venture with Cosipar, the Brazilian pig iron producer, in 2011.
“Brazil’s broad industrial base means it has remained a key destination for the manufacturing and extractive sectors," Varley said.
"But UK companies are now looking to divest into business services; retail and consumer products; and information, communications and technology (ICT). There’s also a wealth of un-tapped opportunity available for those UK mid-market companies and SMEs willing to take a risk.”
Overwhelming interest from UK mid-markets and SMEs in Brazil
Ed Hudson, head of Brazil Business Services at Ernst & Young in the UK, says that he is seeing an overwhelming interest from mid-market companies and SMEs in Brazil. “I’ve recently been on a tour of the UK meeting with our mid-market and SME clients to talk about the opportunities for international trade,” he remarks.
“They believe that Brazil is the next big investment destination, above other fast-growth markets. I would say that 80% of the businesses I have spoken to are either already looking at the market, or want to explore the potential of doing business in the country. Those companies operating in defence manufacturing, consumer industries and infrastructure are showing a particular interest. The investment appetite across the UK regions is balanced in both services and manufacturing, but it the export focussed manufacturers in the Midlands, Scotland and South West that appear to be particularly active here.”
Brazil’s complicated investment landscape remains a challenge
However, while the will to invest is apparent, there are challenges in operating in Brazil which... continued on page three >