Associação Commercial, Industrial and - Brasil economico/div_ind-com... · Alexandre Pires Ramos - Vice-President ... Ariovaldo de Melo Filho César Silva Campaante Durval Alexandre

1

2

Associação Commercial, Industrial and

Services from Montes Claros

3

Montes Claros, 2008

Associação Commercial, Industrial andServices from Montes Claros

4



CONSEL BOARDAntônio Silvério Paculdino Ferreira - President

Alexandre Pires Ramos - Vice-PresidentAntonio Henrique SaporiAriovaldo de Melo FilhoCésar Silva Campaante

Durval Alexandre Pedro da SilvaEdgar Santos FilhoEsmeraldo Pizarro

Evandro Magalhães DantasFeranndo Martins de Carvalho

Gilson Rodrigues PinhoHélder Silva Melo

José André Coimbra SobrinhoJosé Carlos Nogueira Gontijo

José Geraldo Feranndes SantosMarcos Fábio Martins de OliveiraNewton Carlos Amaral Figueiredo

Roann de Freitas PereiraRuy Sérgio D´AngelisSérgio Luiz da Silva

FISCAL BOARDAyer David Cerqueira - Efective

José Ildeumar Soares Pereira - EffetiveRoanldo Eustáchio David Alcântara - Effetive

José Gilson Veloso Caldeira - SurrogateMarcelo José Martins Furtado de Souza - Surrogate

SUPERIOR BOARDDavid William Crosland Guimarães - President

Valdir Veloso Figueiredo - Vice-PresidentFeranndo Ferreira Deusdará

Alexandre Pires RamosJayme Crusoé Loures de M. Meira

João Bosco Martins de AbreuJamil Habib Curi

Alberto Celestino Ferreira

5

BOARD OF COMMERCIAL, INDUSTRIAL AND SERVICES ASSOCIATION

FROM MONTES CLAROS - ACIMOC

PRESIDENTGeraldo Eustáquio Andrade Drumond

VICE-PRESIDENTAdauto Marques Batista

COMERCCIAL VICE-PRESIDENTSérgio Danilo Gonçalves Terence

INDUSTRIAL VICE-PRESIDENTJoão Paculdino Ferreira

SERVICES VICE-PRESIDENTAdriano Becattini de Miranda

MICRO AND SMALL COMPANIES VICE-PRESIDENTEranndes Ferreira da Silva

ECONOMY VICE-PRESIDENTGeraldo Matos Guedes

ACCOUNTABLE AND JURIDIC VICE-PRESIDENTEdenilson Durães de Oliveira

AGROBUSINESS VICE-PRESIDENTGilberto Gualter dos Santos

COMMUNITARY VICE-PRESIDENTMarcelo Zuculin Júnior

ENVIRONMENTAL MAANGEMENT VICE-PRESIDENTJúlius César Denucci

ADMINISTRATIVE VICE-PRESIDENTReanto Antônio Silva Tupianmbá

SOCIAL DIRECTORFeranndo Ferreira Deusdará

1º TRESOURER 2º TESOURERJosé Argemiro dos Santos Victor Hugo Marques Pian

GENERAL SECRETARY 2º SECRETARYRita de Cássia Oliveira Bichara Edilson Carlos Torquato

6



TECHNICAL TEAM:

GENERAL COORDIANTION:Geraldo Eustáquio Andrade Drumond

ACIMOC President

RESPONSIBLE CONSULTANT:Ada Consultoria & Negócios – Strateg Sociedade Simples Ltda.

CONSULTANT:Aloysio Afonso Rocha Vieira

Economista – CORECON 4632-10a MG

Geraldo Matos GuedesVice-Presidente para Assuntos Econômicos ACIMOC

7

MAP 1 – Localization of Montes Claros City in Mians North.........................................................MAP 2 – Southeast Region Road Guide.............................................................................................MAP 3 – Localization of Montes Claros City....................................................................................

MAPS

Board 9 – Number of Formal Jobs on 2006, December The 31st.......................................................Board 10 – Formal Job Variation On December The 31st – Between 2005 and 2006.................Board 11 – Medium Salary From Formal Jobs In 2006, December The 31st...................................Board 12 – Formal Job Floating – 2007/Jan To 2007/Dec................................................................Board 13 – Admission Medium Salary - 2007/Jan To 2007/Dec......................................................

BOARDS

6263646565

162841

8



1 – PCI – Potential Consume Index – Montes Claros 2008...........................................................2 - Company Sectorial Distribution - Montes Claros 2007..................................................................3 - Company Sectorial Distribution – Montes Claros 2007..........................................................4 - Consume Potential – R$ - Montes Claros 2007...........................................................................5 - Ten Hugest Mineiro Municipe Populations.................................................................................1 - Montes Claros – Total and Presumed Population 2000-2007......................................................2 - Montes Claros – Population by Domicile Situation, 1991 e 2000.............................................3 - Montes Claros – Population distributed by Age Group, 2001.......................................................4 - Montes Claros – Human Development Index – IDH (1991, 2000).................................................6 - Distance from Montes Claros to Main State Capitals..............................................................7 - More important Munícipes of the Region, Productive Assets and their distance from Mon-tes Claros..............................................................................................................................................8 - ELECTRIC ENERGY INSTALLED CAPACITY.............................................................................5 - Montes Claros – Electric Energy Consumption in Mwh: 1999 to 2005....................................6 - Montes Claros – Electric Energy Consumer Number 1999 to 2005............................................7 - Montes Claros – Garbage Generated Volume (Monthly Médium from 1997 to 1999)...............8 - Montes Claros – Health Services 2005..........................................................................................9 - Montes Claros – Health Equipments 2005.................................................................................10 - Montes Claros Teaching – Enrollment, Teachers and School Net 2006..................................11 - UNIMONTES In Numbers – 2004 to 2007..................................................................................12 - Montes Claros – Entrepeneuring Tax........................................................................................13 - Montes Claros – Municipal Institucioanl Quality Index............................................................14 - Montes Claros – Entrepeneuring Densification – 2005............................................................15 - Montes Claros – Public Fiannces - Income x Debt: 2004 a 2007...............................................16 - GDP PM and Montes Claros Constant: 1995 a 2004..................................................................17 - Annual Growth Taxes, IPCA and GDP Real Growth Tax in Montes Claros (1995-2004)..........18 - Real GDP Growth of Brazil and Montes Claros (1995-2004)......................................................19 - Added Value (GDP) and Sectors Percentage in Montes Claros – Years 1995, 2000, 2002and 2005.........................................................................................................................................20 - GDP Per Capita to Current Prices in Montes Claros (1995-2004)...........................................21 - GDP Per Capita to Current Prices in Montes Claros (1995-2004)............................................

TABLES

25262627283535353941

42424343444545464755555656575858

595959

9

INDEX

1 APRESENTATION...........................................................................................................................1.1 ACIMOC.......................................................................................................................................1.2 MONTES CLAROS CITY..............................................................................................................2 MONTES CLAROS HISTORY....................................................................................................3 MUNICIPAL COMPETITIVITY.....................................................................................................3.1. Consume Potential....................................................................................................................3.2. Population....................................................................................................................................3.3. Road Transportation Infra-structure...........................................................................................3.4.Installed Industrial Park.............................................................................................................3.5. Health Infra-estructure.............................................................................................................3.6. Educational Infra-structure.......................................................................................................3.7. Instittions for the Development Foment.....................................................................................4 DEMOGRAPHY................................................................................................................................5 INFRA- STRUCTURE AND SOCIAL ASPECTS..............................................................................5.1. Physical Aspects (Climate, Soil, Hidrography)........................................................................5.2. Life Quality................................................................................................................................5.3. Road, railway and air Structure.............................................................................................5.4. Comunication............................................................................................................................5.5. Energy........................................................................................................................................5.6. Basic Sanitation.......................................................................................................................5.7. Health.......................................................................................................................................5.8. Education.....................................................................................................................................5.8.1. Superior Teaching...................................................................................................................5.8.2. High School and Fundamental Teaching................................................................................5.8.3. Teaching Municipal Net..........................................................................................................5.9. Culture, Leisure and Social- political Organization..................................................................5.10. Public Safety............................................................................................................................5.11. Public Organisms....................................................................................................................5.12. Tourism and Invironment........................................................................................................6 MUNICIPAL ECONOMY.................................................................................................................6.1. Entrepeneuring Tax....................................................................................................................6.2. Municipal Institucioanl Quality Index........................................................................................6.3. Entrepeneuring Densification...................................................................................................6.4. Municipal Income......................................................................................................................6.5. GDP Behaviour............................................................................................................................6.6. Industrial Park............................................................................................................................6.6.1. Main industrial segments......................................................................................................6.7. Emplyment and Jobs..................................................................................................................6.8. Fiscal and Fiannce Incentives...................................................................................................

111315172325282829303031333739394042424344454648484949505053555555565759596266

10



6.8.1. Municipal Incentives...........................................................................................................6.8.2. State Incentives........................................................................................................................6.8.3. Federal Incentives..................................................................................................................6.8.3.1. SUDENE................................................................................................................................6.8.3.1.1. FNDE...................................................................................................................................6.8.3.1.2. FNE....................................................................................................................................6.8.3.2. Northeast Brazil Bank...........................................................................................................7 POTENCIALITIES.............................................................................................................................7.1. Agroenergy.............................................................................................................................7.2. Biotecnology.........................................................................................................................7.3. Education..................................................................................................................................7.4. Fruitculture...........................................................................................................................7.5. Cattle for Cutting....................................................................................................................7.6. Information Technology.........................................................................................................7.7. Textile........................................................................................................................................7.8. Tourism.....................................................................................................................................7.9. Health......................................................................................................................................7.10. Fenics – A Unic Opportunity Case.........................................................................................REFERENCES......................................................................................................................................

66666767676768717373737474747474757577

11

12



13

1.1. ACIMOC:

Since its foundation, in 1949, December the31st, Comercial, Industrial and ServicesAssociation from Montes Claros – ACIMOCthas been the strongest and mostrepresentative of all professioanl andeconomic associations. Always envolved withpolicy and administrative questions of the city,it works to bring the development and theprogress to Montes Claros.

ACI is a civil non profitable association thataims to promote the development, the progressand people well being, to discuss the social-economic problems of its members and thecommunity, to defend free enterprise, the freeconcorrence, the legitimacy of profit, anda t

last, to represent and strengthen the classescongregated.

During last years, ACI was ahead of its timewith new pproposals and ideas. The entityorganizes itself, propose strategic plans anddraws important lines in social-economicdevelopment. To unite the public and privatepowers and the organized society for thatdevelopment is undoubtely a further step toachieve an objective: the motivatioanlstrenght that moves the entrepeneurs towardssuccess.

IN 2007, ACI registered a milestone in itshistory through great advances. Thanks tocooperation and fight spirit of the teamcomposed by the directors’ board, employees

APRESENTATION

14



and partners – foment organisms and thepress. To its members, besides movements ofcommon interest, ACIMOC offers exclusiveservices in several subjects.

Services offered today by ACIMOC to itsmembers and community:

NET – Trainning Excellence Nucleus: It isa result of a partnership between ACI andEquilíbrio Company. Focusing in the peopleand organisation development, NET offerscourses, lectures, semianrs and debates thatbroach themes as: organizatioanl dyanmic,motivation and leadership, knowledgemaangement, entrepeneuringmaangement, accountability and fiannces,marketing, serving the client, among others.

Specialization Courses: To eanble companyowners and graduated professioanls theaccess the specialized capability in areassuch as Strategic Administration,Environmental Maangement, Entrepeneuringand Human Resources, through partnershipwith universitary centers.

PROE – Educatioanl ComplementationProgram – is a device considered perfect forthe integration among teaching institutions,students and companies. It allows thecompany owner to fulfill his social role andto oxigen his company with the hired traineeknowledge. PROE has agreements withcolleges and High Schools institutions,besides hundreds of companies. Hiring atrainee through PROE presents advantages,such as non creation of labor link; it isexcellent as a mean for professioanlqualification.

COMERCIAL DEPARTMENT – Troughseveral and important partnerships, theComercial Department eanbles its members,their families and employees a diversifiedgroup of products and services. The goal is to

integrate business, leisure andintertainment to industry,in Montes Claros.Among the products, we may point out:Health Plans; English and Spanish courses;Drive licence or renewing of CNH in itscategories A, B, C, D or E; media marketingor policy researches, bank account opening,special bank check, credit cards, and loanswith payroll discoun; tourism packings, club,agreement cards for truck fleet, drugstore,awarding; college discounts among others.

Assessories and Consultories: ACI offersassessory, consultory and law inentrepeneur matters services (Tribute,Comercial, Civil, Labor areas). Theconditions are special for members, ensuredthem fast and easy access to more relevantjudicial information about the enterprise.

RMPC: Credit Protection Mineira Net: offersaccess to RMPC, allowing the member toconsult the data bank from SERASA andEQIFAX permanentely updated in severalpoints in the country, with information aboutshares, concordat, bankrupticy, protests,halted or stolen, canceled and lost checks,improving this way the security in offeringproducts and services.

Planning and Projects: specialized servicesin Technical Fiannce-Economic Assessoryhelping in decision making in enterprisesof several segments investments. WithOficial Banks partnerships, it is offeredassessoria concerning available credit linesfor investment and floating capital. Thedepartment offers support service toentrepeneurs all over the country onmunicipal, state and federal incentives,inclusively SUDENE.

SICOOB CREDINOSSO: Microentrepeneurs,microcompanyowners and Small CompanyOwners Credit Cooperative from North ofMians, under SICOOB CENTRAL

15

CREDIMIANS system, founded in 2004, May,being the first multisectorial creditcooperative allowed by BACEN in MiansGerais. It answers to all entrepeneur fromregioanl economy segments, that is,commercial, industrial, country productionand also self-employeed professioanls.

ACI offers to its members and community

modern infra-structure to perform of activitiessuch as trainnings sections, courses andlectures, besides workshops, semianrs andbusiness meetings. The entity organizesbusiness meetings to spread regioanl products,propagate the opportunities of the region to“joint ventures” with antioanl and interantioanlgroups and captivation of investments aimingto increase job offer in Montes Claros.

VISION

“To be acknoledged by the entrepeneursegment as the entity that representshim and search for solutions to develophis business.”

“To Promote, develop and reperesent theentrepeneur segment, contributing withproduct and solutions for his businesssuccess”.

MISSION

1.2. MONTES CLAROS CITY:

Montes Claros since the beginning of MineiraNorth Region colonization characterizes itselfas the Regioanl Social-Economic Pole, whatallows it not only to quantify the regioanlproduction but also to influence in itsorientation and in the expansion of the Northof Mians Regions and part of JequintinhonhaValley.

One of the main integrant munícipes ofNortheast Mineira Region – RMNE, MontesClaros always constitute itself in the mainurban center of reference of the population ofthis area. The great city and RMNEtransformations took place through fiscalincentives from SUDENE – NortheastDeveloping Superintendency. Incentiveswhich allowed structural changes in themunicipe reality, determining interanl flowsof people, habits, capital and technology. Thus,Montes Claros is coming close to otherproduction and consumer centers of thecountry.

The implementation of high technologyprojects foments specialized professioanl flow,at the same time it works as an atraction forthe contry and urban populations of the regionthat, due to contry real state concentrateprocess and the small real state strangulation,have to come to Montes Claros in order tosearch for better conditions in life.

The intensification of the industrilizationprocess beginning in the 60 decade withSUDENE’s arrival has allowed through theyears the rise of social-economic indicators ofMontes Claros, that during last yearsconsolidates itself as the atraction pole for thisdevelopment through focused investments notonly in the cattle breeding and industry butalso in the third party sector with theintensification of local commerce and serviceworkers. We also point out in this last case, tothe consolidation of an educatioanl pole incollege degree and health in the city, throughthe atraction of users and clients in those twosegments from all region and from other states

16



in Brazil. As it will be shown late, Montes Cla-ros is today regioanl and state reference asfar as college education and access to healthpublic services are concerned.

Around Montes Claros it gravitates anaproximately 2 million people, coming fromthe cities that formed the North of Mians andJequintinhonha Valley, as well as cities of theSouth of the Bahia State. All that populationconstitutes itself as a potencial buyer marketof goods and services that are offered daily by

the local economy.

With 352.384 inhabitants1, the munícipe ofMontes Claros is located in the High MedimSão Francisco River, North of Mians GeraisState, having a total area of 3.582 Km2; theheadquarters occupies 97 Km2.

It has 10 Districts, anmed: Aparecida doMundo Novo, Canto do Engenho, Ermidinha,Miralta, Nova Esperança, Panorâmica, SantaRosa de Lima, São Pedro das Garça, São Joãoda Vereda e Vila Nova de Mians.

1 Presumed population for the year of 2007 – Pesquisa Ancioanl por Amostra de Domicílios 2006 - IBGE.

MAP 1 – Localization of Montes Claros City in Mians North

17

18



19

In the beginning of brazillian colonizationwhich started around 1530, the colonizersbrought from Madeira Island, a portuguesepssession on the Atlantic Ocean, the firstcattle that wolud be created in the farms ofthe first owners of Capitanias Hereditárias,that some decades ahead due to the expansionof the activity, the valley of São Francisco Riverwhich was a region of good grazing and waterin plenty.

The cattle breeding activity made appear twogreat potentates, one from the Tower House,Francisco Garcias Dias D’Ávilla and other fromthe Bridge House, Antônio Guedes de Brito.The first had his domains beginning on theSalitre River up to the estuary of São FranciscoRiver. The second had his domains from theSalitre River up to Medim São Francisco,searching mainly Verde Grande River valley,a São Francisco tributary, and the GorutubaRiver valley, a Verde Grande River tributary,due to those two valleys were far form the

conflict area among the colonizers and theindian people that inhabit the region.

Several indian nations occupied the regionwhere the cattle breeding activity expandeditself and they gave strong resistence to thecolonizers, mainly the Cariri antion.

In the last ten years of Seventeenth century,with the help from Bahia’s Governor, who hiredpaulistas explorers Matias Cardoso andAntônio Gonçalves Figueira, who came fromFernão Dias Paes Leme expedition theconflicts were finished via the extermiantionand imprisonment of the indians.

Matias Cardoso and Antônio GonçalvesFigueira, during the battle campaing againstthe indians, known the huge São FranciscoRiver valley region and many of its tributaries.Both decided to stay in the region where thecurrals were expanding. Matias Cardoso stayedat São Francisco river margin where hebecame a farmer and founded several small

MONTES CLAROS HISTORY

20



towns. Antônio Gonçalves Figueira searchedfor the Verde Grande river valley to live.Through the permission signed in 1707, Aprilhe received a piece of land o one mile widht bythree lenghts, which formed Montes ClarosFarm.

The farmers constructed mills, madeplantations and rised much cattle. In order tocomercialize the cattle and agriculturalproducts from his farms, Antonio GonçalvesFigueira built several ways that united the SãoFrancisco River region to the mining regionand to Bahia’s recôncavo.

Gonçalves Figueira in order to reach the cattlemarket, built roads to Tranqueiras in Bahiauntil São Francisco River. He had a greatinterest in the expansion of cattle commerce,thus he connected himself to Velhas River andalso to Pitangui and Serro. The region wasbecoming populated and Montes Claros Farmbecame the hugest Cattle Commerce Centerin the North of Mians Gerais and it turned intoa great crossing point, for who came from themining region, mainly Diamantian going tothe country side of São Francisco River and toGoiás lands had to pass through Montes Claros.

They were the meat from the cattle and thecereals produced in Montes Claros’ farms thatalleviate the miners’ hunger.

After the return of Antônio GonçalvesFigueira, in middle XVIIth century, to paulistashore, Montes Claros farm stayed abandoned.André Gonçalves Figueira, one of his sons soldthe farm to country man José Lopes deCarvalho.

José Lopes de Carvalho, after buying MontesClaros farm, moves the headquarters to a placenear Vieira river, a tributary of Verde Granderiver and builts a chapel well in front of hisfarm headquarters, doanting a piece of land tothe Church in exchange for the autorizationfor its construction.

In the land doanted to the Church, around theChapel built by José Lopes de Carvalho, whichwas anmed Nossa Senhora da Conceição e SãoJosé, arises the small town which later wiillbe the origin of Montes Claros city that was atthat time a crossing point where there weremany roads. Those roads drove to North ofMinas Region, to the mining region and to thecapital of the state.

In 1831, October, the 13th, a regioanl lawcreated the Montes Claros das Formigasmunicipe, transformed into village. Later,through a provincial law, in 1857, July the 3rd,the village received the “status” of city.Commerce was growing, the cattle breedingactivity solidified itself as one of the hugestbovine herbs in the province, schools werebuilt, the first plants were installed, SantaCasa de Misericórdia was instituted, the firstphysicians arrived, also dentists, pharmacists,lawyers and masters, almost all of themchildren of the land that went abroad to study,but came back to their hometown, afterreceived their diplomas.

Here there is the way started by the richArraial de Formigas, then Arraial de NossaSenhora da Conceição and São José deFormigas, Vila de Montes Claros de Formigasand in the end Montes Claros City.

The city was improving and in the beginningof the second decade of XXth Century, it wasinstalled in Montes Claros, the first telephonCompany. In the same decade, electric energyarrived. In the middle of the following decade,the edge of the railway came into town.

In 1936, it started the railway connectingMontes Claros to Monte Azul, which wouldallowed the railway connection of EFBC withLeste Brasileira, uniting Brazillian Northeastwith Southeast region.

Later, Brazillian government priorizes thedevelopment of road transportation, Montes

21

Claros is again benefited with theconsolidation of its road net, which, in theopinion of some people, is the second hugestroad net in Brazil.

In the end of XXth Century and in thebeggining of the 3rd millenium, Montes Clarosreached a status of a great city, the 5th inMians Gerais State in number of inhabitantsand one of the most progressist in the State.

Important Dates and are milestones in thehistory of Montes Claros:

1857 – Categorized as city on July the 3rd(Montes Claros City);

1880 – Installing the first fabric plant (CedroPlant);

1884 – First Newspaper printed (CorreioNorte);

1892 – Installing theTelegraphic Service;

1909 – Creation of the first High School (GrupoEscolar Gonçalves Chaves);

1912 – Installing the Urban TelephonicService;

1917 – Ianuguration of electric light;

1920 – Foundation of Commercial Association;

1926 – Ianuguration of Brazil Center Railway;

1938 – Ianuguration of Drinkable WaterService;

1956 – Installing the Long-distance TelephoneService;

Installing the 10th Militar Police battalion;

1959 – Creation of SUDENE in 1959.12.15,through Law 3.692 that included MontesClaros more 41 municipes in the North ofMians in its scope area;

1963 – It was founded the first College Unit inNorth of Mians, the Philosophy, Sciences andLetter School – FAFIL, having as sponsoredentity Luiz de Paula Educatioanl Foundation –FELP;

1965 – It was implanted the first FUNM CollegeUnit, the Law School – FADIR;

1966 – FAFIL leaves FELP and goes into FUNM;

1968 – Installed in FAFIL the Mathematic,Social Science and Phylosophy;

1969 – Created the Medical School – FAMED;

1972 – Installed the Administration andFiannce School - FADEC, with the courses ofAdministration, Accountable Sciences andEconomic Sciences;

1987 – It started to work the Artistic EducationScholl - FACEART;

1989 – North of Mians College Foundation –FUNM was changed into Montes Claros StateUniversity - UNIMONTES;

1996 – Featuring the first edition of FENICS;

2002 – Biobrás was purchased by Novo Nordisk;

2007 –Creation of new SUDENE byComplementary Law nº 125 of 2007/01/03;

Beginning of installation of Petrobrás BiodieselPlant;

Beginning of ETE installation – SewerageTreatment Station.

22



23

24



25

Among the 853 municipes that compose theMians Gerais State, Montes Claros can bepointed out as far as atractivity andcompetitivity are concerned related tobusiness opportunities.

Those conditions of atractivity andcompetitivity are guaranteed among otherfactors, for:

3.1. Consume Potential:

Montes Claros was considered by BrazillianMarket Atlas1, published by the economic paperGazeta Mercantil, the most dyanmic municipeof Mians Gerais State and the 27th in Brazil.

The most dianmyc cities are chosen amongthe 300 municipes with greatest potential inBrasil, using the following dianmysmindicators with the respective weights:

MUNICIPAL COMPETITIVITY

* The basket is composed by expenses in: Health-Education-Sanitation- Science and Technology-Habitation

1 Brazillian Market Atlas 2008. Published by Gazeta Mercantil, it presents the social-economic perfil of all BrazillianStates in maps enriched with infra-structure, education, health and exterior commerce data – besides otherindicators, among them itens as products and service consume, with detailed information about family income;bank information; consume goods; construction materials; aquisition and construction reforms; vehicles; culture;health and tourism services.

TABLE 1PCI – Potential Consume Index -

Montes Claros 2008

26



Source: Brazillian Market Atlas 2008, GazetaMercantil.

Target Marketing3, in its publication “IPCTarget 2007 – Brazil in Focus” also brings thesectorial detailing and the estratification ofConsume Potential from Montes Claros city by

3 http://www.targetmark.com.br/

TABLE 2Company Sectorial Distribution

Montes Claros 2007

Source: Target Marketing – IPC Target 2007 – Brasilin Focus

TABLE 3Company Sectorial Distribution

Montes Claros 2007

Source: Target Marketing – IPC Target 2007– Brazil in Focus

Social Classes. Those indicators are detailedon following Tables 2, 3 and 4.

Still according to Target, Montes Claros presentsan IPC-Target of 0,16826, which places it in the7th position in the State Ranking and 89th inthe Antioanl Ranking in 2007.

27

TA

BLE

4C

onsu

me

Pot

enti

al –

R$ -

Mon

tes

Cla

ros

2007

Sou

rce:

Targ

et M

ark

etin

g –

IPC

Targ

et 2

007 –

Bra

zil

in F

ocu

s

28



3.2. Population:

Montes Claros is the fifth hugest municipe ofMians Gerais (Table 5), exclude the CapitalBele Horizonte. This position will favour to awhole dyanmic as far as public State and Mu-nicipal investments are concerned. Thoseinvestments will keep an adequated ifra-structure and that guarantees the municipeproductive moving.

3.3. Road Transportation Infra-structure:

According DER-MG (2002) data, Montes Clarosis the second antioanl crossing point. Throughthe Municipe, which is served by Federal Roads(BR-125, BR-365) and State Roads which allowa connection to other roads (BR-040, BR-116),transit daily 14.414 vehicles.

MAPA 2 – Guia Rodoviário da Região Sudeste

MAP 2 – Southeast Region Road Guide

TABLE 5Ten Hugest Mineiro Municipe Populations

(Excluded the Capital Belo Horizonte)

Source: IBGE – 2007

Montes Claros Town

29

Around 70% of that movement is characterizedby cargo transportation, having in themunicipe a connecting point and a flowing ofproduction among South, Southeast, Northeastand Centerwest Regions.

The urban comuting presents a monthly flowof around 2 million people.

3.4.Installed Industrial Park:

The Montes Claros Industrial District hasimportant productive units for the ancioanl andworldwide sceanrios. Besides the fact that itis installed nearby downtown and SewrageTreatment Station – ETE; that location allowfavourable conditions to install companieswith a diversified business profile.

Inserted in North of Mians region, the so calleddrought polygon, Montes Claros is part of theaction field of SUDENE and FINOR since 1959,December. Up to the year of 2004, SUDENE’sMineira Area attracted R$ 7,55 billion oninvestments, being that, R$ 1,7 billion wereguaranteed by Northeast Investment Fund(FINOR), administrated by Northeast Bank.The projects implanted in the city and regionreceived the hugest index of approval.

In Montes Claros are located companies of themost varied productive sectors ando f greatimportance. Among them we point out:

Cotemians: beginning in Montes Claroswhere it has four production units, from a to-tal of eleven that manufacture and distributeproducts that present trade marks of successin the market. They are threads, fabric, T-shirts, socks, bath towels and blankets for theinternal market, for the USA, Europe andMercosul.

Elster Water Measure S.A. – a leadercompany, manufacturing advanced productsand intelligent measure solutions. Located inMontes Claros, is part of Elster Group, thehugest worldwide in water, gas and energymeasure solutions, present in more than 38countries around the world.

Lafarge – worldwide leader in constructionmaterials, with an important position in allactivities: Cement, Concret and Drywall. It has71000 employees in more than 70 countries.In Brazil it employs 1,5 thousand employeesin plant units in Rio de Janeiro, São Paulo,Mians Gerais, Bahia, Peranmbuco and SantaCatarian. The plant in Montes Claros

30



Hospital Aroldo Tourinho

Hospital Universitário Clemente de Faria

manufactures the cement Portland.

Nestlé – has the production unit of condensedmilk installed in Montes Claros and it is thehugest plant of Latin América in such aproduct.

Novo Nordisk – danish pharmacist, one of themain world manufacturer of insulin and leaderin the brazillian market on that segment. Itsplant in Montes Claros iniciated in 2007received investments of US$ 200 million.

Vallée Nordeste S.A. – since 1978, thecompany that works in the pharmacist area,produces veterianry products of all classes, with

focus on production animals,such as bovines, goats, porks andhorses. Vallée hás the mostcomplete line in the market inits segement.

3.5. Health Infra-estructure:

Health Infrastructure

The town is a pole as far as healthservice is concerned andpossesses the best healthequipment among themunicipes in the area thatlimits with the cities of Salva-dor-BA, Brasília-DF and Belo Ho-rizonte. It is a reference inmedium and high complexityprocedures and in health publicactions developed in Mians Ge-rais.

Montes Claros is reference inhealth to the North of Mians,Jequintinhonha Valley andSouth os Bahia in high and mé-dium complexity. Many of theactions developed in this sectorare reference for the health statepolicy.

3.6. Educational Infra-structure:

As far as universitary education is concerned,Montes Claros is getting a very good positionand consolidating in an Educatioanl Pole.Besides Universidade Federal de Mians Ge-rais, with the Agricultural Science Institute,there are other seven Colleges. They areoffered besides more than 40 graduationcourses, several Post graduation courses asspecialization and master degree. There arealso institutions as Getúlio Vargas Foundation,SEANC, São Camilo.

31

3.7. Instittions for the Development Foment:

Due to be the main city in the North of MiansRegion, Montes Claros congregates in itsstructure the main public institutions tosupport and give incentive to its development.We point out:

Caixa Econômica Federal;

Banco do Brasil;

Banco do Nordeste;

CODEVASF – Companhia de Desenvolvimen-to do Vale do São Francisco;

COPASA – Companhia de Saneamento deMians Gerais;

DER-MG – Departamento de Estradas de Ro-dagem do Estado de Mians Gerais;

DNOCS – Departamento Ancioanl de Obrascontra as Secas;

EMATER-MG – Empresa de Assistência Téc-nica e Extensão Rural do Estado de Mians Ge-rais;

IBGE – Instituto Brasileiro de Geografia eEstatística;

IDENE – Instituto de Desenvolvimento doNordeste;

IEF – Instituto Estadual de Floresta;

IMA – Instituto Mineiro de Agropecuária;

SEBRAE – Serviço de Apoio às Micro ePequeans Empresas;

SEANC – Serviço Ancioanl de AprendizagemComercial;

SEANR – Serviço Ancioanl de AprendizagemRural;

SESI – Serviço Social da Indústria;

SEST – Serviço Social do Transporte.

32



33

34



35

DEMOGRAPHY

Fifth State municipe in terms of population,Montes Claros is located among in the 2,3% ofmineiros municipes with population between100.000 and 500.000 inhabitants, with ademography density of 85,2 inhab/Km2. Amongthe 853 mineiros municipes, 20 are in thisrate and only three have more than 500.000inhabitants. (IBGE, Censo 2000).

TABLE 1Montes Claros – Total and Presumed

Population 2000-2007

Source: IBGE – Censo Demográfico 2000 e Projeçãoda População do Brasil 1980-2050

According to IBGE, the proportion of anturalpeople1 for the municipe of Montes Claros(Censo de 2000) is of 65%.

1 It refers to people who always lived or were borne in the domicile municipe at the time of the Census.

Source: IBGE

During the period 1991-2000, Montes Clarospopulation presented a medium annual growthtask of 2,39%. The urbanization tax grew 3,44,confirming the municipe’s position as atypically urban municipe.

Besides typically urban, Montes Clarospopulation is young with 55% with potencialconditions to answer the labor market (from18 to 59 years of age), as shown in Table 3.

TABLE 3Montes Claros – Population distributed by

Age Group, 2001

Source: IBGE, Censo Demográfico 2001.

TABELA 2Montes Claros – Population by Domicile

Situation, 1991 e 2000

36



37

38



39

INFRA-STRUCTURE AND SOCIAL ASPECTS

5.1. Physical Aspects (Climate, Soil,Hidrography):

Montes Claros municipe hás characteristicclimate, semi-arid tropical kind, hot and dry.

The predomiannt vegetal cover is CerradoCaducifólio and Sub-Caducifólio with slightoccurrences of Cerrado Superemifólio. Thereare, also, transitions areas such as Cerrado/Caatinga.

According to EMATER- Technical Support andCountry Extension Company from Mians Ge-rais State, with soils of high variation as farsas typology is concerned – Red Clay,Cambissolo Háplico, Neosolo Quartizarenico,Red Latossolo, Latossolo Red Yellow, NeossoloLitolito –, Montes Claros presents an annualmedium precipitation of 1060 mmconcentrated from october to march period andan annual medium temperature of 24,2 oC.

The localization in the Alto Médio São Fran-cisco, specifically in the Grande Verde Rivervalley, provides the municipe with severalwatercourses with permanent and semi-permanent regimes. Amon them, we can pointout: Verde Grande River, Sítio River, PeixeRiver, Vieira River, Bois Stream, CedroStream, Canoas River, Traíras Stream, PacuíRiver, São Lamberto River, Riachão, Vale Riverand Pradinho River.

5.2. Life Quality

In the 1991-2000 period, Montes ClarosMunicipe Human Development Index (IDH-M)grew 8,60% being Education the segmentwhich more influenced to that growth with42,2%, followed by Income(33,2%) andLongevity with 24,6%.

During that period, the hiatus of humandevelopment – distance between the municipeIDH and maximum IDH limit (1 – IDH) wasreduced in 22,2%.

Taking as reference the 2000 IDH, MontesClaros is among the regions considered ofmedium human development, according theUnited Antions Development Program, beingin the 969th position in the antioanl rankingand 101st in the state ranking.

TABLE 4Montes Claros – Human Development Index

– IDH (1991, 2000)

Source: Atlas de Desenvolvimento Humano no Brasil

40



5.3. Road, railway and air Structure:

According to its geographic localization and theRoad System growth, the Antioanl Road Plan,classified Montes Claros as the Couintry’s “2nd

hugest Crossing Point”.

The Municipe connects itself to the rest of theCountry by the following means oftransportation: ariways, railways and roads,with predomianncy of the last one.

Localized 7 km far from city, in Northeastregion, Montes Claros Airport has 2.100/45meters of extension, with asphalted runway.It can receive bif airplanes and operates dailyfrom 6:00AM to 10:00PM.

Transfered to INFRAERO- Airport Infra-structure Brasilian Enterprise in 1980, Marchthe 3rd, Montes Claros airport has anAeroanutical Ministry allowance.

Today the air transportation in Montes Clarosis served by Trip Linhas Aéreas, which operatedaily flights to Belo Horizonte City, São PauloCity, Salvador City and other cities in minei-ro country side.

In railway transportation Montes Claros isserved by Centro Atlântica Railway with car-go transportation. It receives Diesel oil, gas,alcohol from Belo Horizonte and thoseproducts are distributed for interanlconsumption.

As far as railway distance is concerned Mon-tes Claros is localized 420 km from Belo Hori-zonte and 1.100 km from Salvador.

The road transportation is intensily used dueto the existing road structure. The city isserved by 10 intermunicipal companies thetoperate in its Bustation with daily trips to maincities in Brazil.

The urban transportation is made by twocompanies with 36 lines, 96 vehicles. The

monthly people transportation is presumed in2.000.000. In 2008 this structure will beimproved as far as lines and vehicles areconcerned with integration and qualityimprovement of the services.

As a complement the city has a huge taxi fleetdistributed in 11 places.

The cargo and value transportation is servedby more than twenty acting companies in themunicipe, such as:

Accord Express Distribuição e Logística Ltda;

Centralmians Transportes e Serviços;

Expresso Elias Mudanças;

Expresso Venice Ltda;

Linx Transportes Ltda;

Movimentar Transportes e Serviços Ltda;

Mudanças Pioneira Ltda;

Pitangui Cargas e Serviços Ltda;

Somudanças;

Temoc Transportes e Serviços Ltda;

Transnorte Cargas e Encomendas Ltda;

Transportadora Eficaz Ltda;

Transportadora Januária Ltda;

Brasil Car Transportadora de Veículos;

Prosegur Brasil S/A Transportadora de Va-lores e Segurança;

Rodoban Segurança e Transporte de ValoresLtda.

The city has vehicle representatives of severalantioanl trade marks as (Ford, Chevrolet, Fiate Volkswagen) and interantioanl trade marks(Nissan, Mitsubishi, Honda, Toyota), besidesvehicle renting companies which are local andfranchised antioanl companies.

41

MAP 3 – Localization of Montes Claros City

Source: Prefeitura Municipal de Montes Claros.Extracted from: <http://www.montesclaros.mg.gov.br/cidade/chegar.htm>.

TABLE 6Distance from Montes Claros to Main State Capitals

Source: DER-MG

42



TABLE 7 More important Munícipes of the Region, Productive Assets and

their distance from Montes Claros

5.4. Comunication:

Montes Claros is served by fix and mobiletelephonic services by the main antioanlcompanies (Oi, TIM, Claro, Telemig Celular).

It has radio stations in AM frequency (RádioFundação José de Paiva Neto, Rádio Educadora,Rádio Terra) and FM frequency (RádioTransamérica FM, Rádio São Francisco deAssis, Rádio Montes Claros, Rádio FM Itatiaia,Rádio Unimontes, Rádio Popular ComunitáriaFM, Rádio Bom Pastor, Rádio Vida Nova).

The city has the main opened TV channels(Globo, SBT, Record, Cultura, Bandeirantes,Rede Vida, Rede TV, Canção Nova) besidescable and satellite TV services.

The city is also has local newspapers andreceives the main antioanl newspapers.

5.5. Energy:

The electric energy supply for industrial,comercial and home using in Montes Clarosand as well in all North of Mians is CompanhiaEnergética de Mians Gerais – CEMIGresponsibility. Today Cemig operates 55usines, being 49 hydroelectric power plants,four termoelectric plants and one eolic,totalizing an installed capacity of around 6.132MW.

The installed capacity of Electric Energy toserve Montes Claros can be related as in thefollowing board (Table 8).

Table 8ELECTRIC ENERGY INSTALLED CAPACITY

43

The monthly consumption in 2006/April wasof 29.301 Mwh. The consumers total numberincreased from 84.501 in 1999 to 107.624 in2005 what represented an increase of 27% over

the period. We point out resident consumerswho represent, in avarege, 84,5 from the total.The others are distributed among industrial,commercial, country comnsumers and others.

TABLE 5Montes Claros – Electric Energy Consumption in Mwh: 1999 to 2005

Source: CEMIG.

TABLE 6Montes Claros – Electric Energy Consumer Number 1999 to 2005

5.6. Basic Sanitation:

The supplying and draining sanitationservices are supplied by COPASA – Companhiade Saneamento de Mians Gerais, a publicstate company, that is responsible forimpounding, treatment and water distribution,besides draining sanitation. According to thecompany, Montes Claros has 93.272connectings/economies, including NovaEsperança District, what corresponds to serve99% of all population. Economies here meanthe water colective connections as it happensin apartment buildings.

According to the State Company, the medium

Fonte: CEMIG

monthly consumption is around 1 million m³.

Regarding to sewerage there are 79.036connections corresponding service to 96% ofall population. To this service there are noeconomies and that is why que quantitativeof water connection do not keep proportion tosewerage connections.

Besides, not all the habitations which havewater connections have sewerageconnections. Today, the great investment thatis being done is the ETE – Sewerage TreatmentStation that will solve one of the greatestenvironmental city problem that is thedestiantion of the sewrage directly into the

44



watercourses. We can poit out that ETE canreceive industrial residuary water accordingto standardization.

Montes Claros Districts are supplied the WaterSupplying System through tubular wellsequipped with underwater hydraulic pumps.

The urban cleaning service and garbagecollecting is ESURB – Empresa Municipal deServiços, Obras e Urbanização responsibilitythat has structure for treatment and recyclingof 270 garbage tons daily.

In the City Hall there is an edit to select acompany that will install Residue UtilizationUsine (garbage) in the city, that also will beselling energy coming from this alterantesource.

TABLE 7Montes Claros – Garbage Generated Volume

(Monthly Médium from 1997 to 1999)

Source: ESURB

The trash collecting system serves to 100% ofMontes Claros Districts with the use of acompactator trunk, garbage containers Brookkind and rotative collecting with a specialvehicle. The city has a controled earthworkand an icinerator for the hospital garbage.

5.7. Health:

The Munícipe of Montes Claros has a hugehealth net, with professioanls highlycompetent and first generation equipments inmodern hospitals in the public and privatesectors. The municipal physical net has 15Health Centers and 03 policlinics installed inthe Urban Zone, equipped with medical and

odontological offices and 08 Health Centerslocalized in the Country Zone (Districts).

The Health Centers are ready to serve around45 thousand people/month. The odontologicalservice gives around 40 thousand proceduresper month, which 2.420 are urgency/emergency procedures.

Montes Claros City Hall supports fiancely SantaCasa and Haroldo Tourinho Hospitals in caseof community service in urgency andemergency cases. It was implanted by theHealth Municipal Secretary the night shift inthree of its health units and there are 03medical - odontological buses totally equippedto serve the country zone and peripherycdistricts.

In Montes Claros, the “Visual Acuity” Programtake physicians to the schools, where thestudents with visual problems receive newGlasses. There had already been served morethan 35.000 between 05 and 14 years of age,according City Hall data.

Regarding the underfeeding, a number greaterthan 800 children with ages between sixmonths to 1 year and 11 months receive milkat no cost. It is distributed milk, soybean oil,iron sulfat and A and B Vitamins. HealthSecretary distributed 130 different kinds ofmedicine from the basic drugstore.

Montes Claros has today 108 dentists in HealthCenters and Municipal Policlinics. Weekly 42thousand brush their teeth followed up bydentists and nurses and with fluor application.

Besides the municipal net, Montes Claros hasa high number of clinics in the examiantionarea and with a hospital net composed by thefollowing hospitals:

Fundação Hospitalar de Montes Claros –Hospital Aroldo Tourinho;

Hospital Universitário Clemente Faria /UNIMONTES;

45

INCOR – Instituto de Cardiologia AroldoTourinho;

Prontoclínica e Hospital São Lucas S.A. –Hospital Dilson de Quadros Godinho;

Santa Casa de Caridade de Montes Claros;

PRONTOCOR – Pronto Socorro do Coração;

The Health Plans segment is very diversifiedregarding the number of Health Plans and thecover kinds. Among them, we can point out:

CAIXA PEC Assistência Previd. Serv. Fund.SERV. Saúde Pública;

Plano Médico Hospitalar São Lucas;

Plano Médico Hospitalar Santa Casa / PAS;

UNIMED;

Saúde Bradesco;

CAMED;

PLANORTE – Convênios odontológicos;

SALVDENT;

SALUTE – Núcleo de Odontologia Preventiva;

Policlínica Bom Jesus/Credencial;

Clínica Bem Estar;

Clínica de Todos.

Source: IBGE

TABLE 8Montes Claros – Health Services 2005

TABLE 9Montes Claros – Health Equipments 2005 5.8. Education:

Montes Claros has a net of basic efficientteaching structure whose end is guaranteedby the Federal, Municipal, State, Private Netsacting. There are also Profissioanlizingteaching, Free Teaching, several preparatoryschools for the university entranceexamiantion, a state and a federaluniversities and seven private colleges.

Source: IBGE

46



TABLE 10Montes Claros Teaching – Enrollment, Teachers and School Net 2006

5.8.1. Superior Teaching:

The Superior Teaching history in begins in1963 with the first superior teaching unit ofNorth of Mians, Philosophy, Letters andScience College – FAFIL, having as sponsoredentity Luiz de Paula Educacioanl Foundation– FELP.

The superior level formation – graduation andpost-graduation – is today offered by a stateuniversity – UNIMONTES -, a federaluniversity – UFMG – and seven privatecolleges - Pitágoras, FUNORTE, Santo Agosti-nho, Ibituruan, FACIT, Unopar, Unipac eFACOMP.

Those institutions offer graduation and post-graduation courses in several knowledgesareas such as:

Biologic and Health Sciences: Medice,Biomedice, Nursering, Biology, Nutrition,Odontology, Hospital Maangement, PhysicsEducation, Psycology, Pharmacy,Physioteraphy, Speech therapy.

Exact Sciences: Mathematics, InformationSystems, Production emática, Sistemas de In-formação, Production Engineering,Environmental Engineering, Design, CivilEngineering, Electric Engineering, ElectronicEngineering, Mechanical Engineering,Agronomy, Zootechnics, Architecture andUrbanism.

Source: IBGE(1) Data from Secretaria Municipal de Educação, 2008.

47

TABLE 11UNIMONTES In Numbers – 2004 to 2007

Human Sciences: Letters, History,Phylosophy, Geography, Humaans: Letras,História, Filosofia, Geografia, Pedagogy, Arts,Religion Sciences, Superior Ciências da Reli-gião, Normal Superior.

Social Sciences: Law, Direito, SocialSciences, Social Services, CompanyAdministration, Accountable Sciences,Economic Sciences, Tourism and HotelSciences, Advertising and Propaganda.

The universitary community in Montes Cla-ros today A comunidade universitária de Mon-

tes Claros hoje overcomes 20.000 students,coming not only from Montes Claros but fromall cities of North of Mians as well as the Southof Bahia generating a supplying of goods andservices that start with feeding and habitationservices to consumption semi-durable goods.

The Montes Claros State University, thehugest teaching institution from North ofMians, presented the following hystoricregarding offered courses, students, teachersand tecnic-administrative employees duringlast years. (Table 11).

Source: Universidade Estadual de Montes Claros – UNIMONTES

48



The city has steel with all infra-structure forcomplementary – technical formation to ser-ve the local labor market and served by FIEMGSystem institutions - FIEMG – Federação dasIndústrias do Estado de Mians Gerais, SEANC– Serviço Ancioanl de Aprendizagem Comer-cial, SEBRAE – Serviço de Apoio às Micro ePequeans Empresas, SESI – Serviço Social daIndústria, SEST – Serviço Social do Transpor-te e SEANR – Serviço Ancioanl de Aprendiza-gem Rural.

5.8.2. High School and Fundamental Teaching:

Montes Claros is supplied by the RegioanlTeaching Superintendency that works foremore 29 municipes.

In Montes Claros, the High School and Funda-mental Teaching, according to available datafrom the Superintendency and School Censusof 2005, is served by:

Childish Education: 52 municipal units and61 private;

Fundamental Teaching: 51 state units, 62municipal and 50 private;

High Scholl: 28 state units, 1 municipal and16 private;

Young and Adult Education: 13 state units,21 municipal and 6 private;

Special Education: 1 state unit and 3 private;

Professioanl Education – technical level: 1federal unity and 10 private.

In its private net the city has today solidteaching institutions connected to greatteaching nets in Brazil such as Pitágoras,Positivo, Coque e Promove Nets.

5.8.3. Teaching Municipal Net:

Focusing in inclusive and qualitativeeducation the Teaching Municipal Net electedas its mission to coordeante the reformulation

and the implantation of entering andpermanence policies of the students, ofresource patterns evaluation, continueforming and profissioanl valorization. TheTeaching Municipal Net offers ChildishEducation, Fundamental and High SchoolTeaching, Preparing Municipal Schools andYoung and Adult Education.

Childish education in the Teaching Munici-pal Net is offered in 37 municipal institutionscalled Childish Education Municipal Centers– CEMIs; four conviviality centers; 28 munici-pal schools, besides nine phylatropic entities,through accordings. Today more than 11.000children from 2 to 5 years of age are served.The significative demand is in the 2 to 4 yearsof age group.

With a structure of 62 teaching units, being12 contry-nucleus scholls, 26 contry schoolsand 24 urban schools, the Montes ClarosTeaching Municipal Net serves the studentsof Fundamental and High School Teaching. Toguarantee the study continuity in places wherethere is no state structure, the EducationMunicipal Secretary made a partnership withthe Teaching Regioanl Superintendency,allowing the installation of supplementarybuildings of the state schools in Municipal Netunits to attend High School students. Today11 state schools are served throughconveannt.

Students of low income and egressed frompublic schools have the opportunity to disputea place at the university. The Teaching Mu-nicipal Net, starting in 2005, offerssemestrally 1.500 vacancies for thepreparatory course for the university entranceexamiantion.

The Education Municipal Secretary isstrehghtenin actions that articulate, mobili-ze, support and contribute for an educationquality effectivation.

49

5.9. Culture, Leisure and Social- politicalOrganization:

The montesclarense culture is one of therichest of the state, uniting music, theater,folcklore, tipical food, handiwork and thebusiness/event tourism.

The city events calendar shows a great nunberof regioanl events. We can point out: PequiFestival (regioanl and antioanl levels),Caranmontes – (Micareta), Folcklore DanceInterantioanl Festival, June Parties, AugustParties (catopés-folcklore), FENICS (see item7 potencialities), Poetry Saloon Poetic Psiu.

For Tourism effect, the greatest event in thecity is Caranmontes which attracts a numberbigger than 200.000 people from all Country.

Regarding the regioanl folcklore, Montes Cla-ros and Noorth of Mians have a lot ofmanifestations that are the same in allcountry due to they came from the same origin:portuguese, african and indian.

Reiandos, reisados, congados, macumbas, can-domblé, childish songs, legends as well thetipical food are part of thepopular culture,transmitted orally for many years.

In Montes Claros, the reiandos, the Catopês andmarujadas were parties of the religiouscalendar since when the city was called For-migas Valley. The Lorenzo Feranndez StateMusic Conservatory recreated the Augustparties. Shortly after, the Montes Claros Cul-tural Municipal Secretary organized the “FirstFolcklore Festival” under the direction ofClarice Maciel becoming since then to be partof the popular parties calendar with success.

In January the Magus Kings, in May Our LadyCoroantions, processions and sereandes,June, Fires, in August, Reiandos and Catopês,Marujos and Caboclinhos, in December,presepes and little female shepherds.

The leisure infra-structure in the city iscomposed by 15 country/social clubs, 06 soccer

fields, 05 Cooper tracks, 05 sport gymansiums.

5.10. Public Safety:

Montes Claros has an adequate public safetyinfrastructure counting with several segmentsof civil and military forces support attached tothe State and the Federal Government:

10th Militar Police Battalion: created by LawNumber 1402 of 55/12/29 denomianted 10thBa. Its installation occurred on 1956, July the25th. The 10th Militar Police Battalion offersa lot of services to the local community andamong them we can point out: patrol service;urban and road transit service; forest policeservice; Firemen Service; CommunitaryPolice Station; Public Jailhouse Safety; Schoolpatrol; etc.

3rd State Road Police Company: createdthrough the decree 30.798, of 1989, Decemberthe 20th and installed in Montes Claros in1990, January the 2nd.

3rd Forest Police Company: installed in 1990,January the 02nd, united to the 3rd PoliceRegioanl Comand.

8th Public Security Regioanl Office: the 8thPSRO, installed in Montes Claros, has underits jurisdiction, the offices subordianted of ge-neral vigilance, crimes against person, crimesagainst woman, transit accidents, transit,patrimony crimes, etc.

55th Infantry Battalion: “Dionísio CerqueiraBattalion”, “Advanced Sentinel of MineiroCountryside” – The most remote origin of the55th Ba is in the 1st Company of the 2ndHunters Battalion cretated in 1851/04/19,with headquarters in Salvador (Bahia). In1975, by a representation of the Army, the tworegimes were extinct and the 2nd InfantryBattalion was transfered to Montes Claros. On1983, September the 13th allowed the historycdenomiantion of “Dionísio CerqueiraBattalion”, to the 55th Infantry Battalion. On

50



1975/11/24 it arrived to its new headquartersin Montes Claros.

Firemen Service: implanted on 1967, Julythe 2nd, the Firemen Service is consideredso far as extremely effective in the communitysupport.

Federal Police: the Federal Police Office wasinstalled in 2000/08/23, covering an areacomposed by 130 municipes starting inBuenópolis up to Montalvânia Bahia’s border.Tose 130 municipes include besides North ofMians, part of Jequitinhonha Valley.

5.11. Public Organisms:

The public structure of Montes Clarosiscomposedstill by a group of organisms from the State andFederal circles whose acting most of the timecovers all North of Mians Region. Among them,we can point out:

CODEVASF – Developing Company of SãoFrancisco Valley;

EMATER – Technical Assistance and CountryExtension of Mians Gerais State Company;

IMA – Agropecuária Mineiro Institute;

IEF – Forest State Institute;

IBAMA – Invironmental Brazillian Institute;

IBGE – Statistic and Geography BrazillianInstitute;

DNOCS – Antioanl Department of Worksagainst Droughts;

North Farm Regioanl Superintendency;

Labor Ministry Sub-Office;

Labor Justice – Firts and SecondJurisdictions;

IDENE – Northeast Developing Institute;

Justice Court where 06 Civil Jurisdictions

work, 03 Crimianl Jurisdictions, 02 Familyand Succession Jurisdictions, 01 Childhoodand Youth Jurisdiction, 02 Public Fiannce,Public Registers, Bankrupcy and ConcordatsJurisdictions, 01 Crimianl ExecutionJurisdiction. Montes Claros has 15 LawJudges, 15 Justice Prosecutors and severalLaw Writers and Public Servents.

5.12. Tourism and Invironment:

Montes Claros, although not being considereda city of potencial tourism has several pointsto be explored. In Montes Claros there aremany caves having uncountablearchaeological sites.

There are 164 catalogued sites and the mainone is the speleological compound of LapaGrande due to its archaeological importanceand touristic potential: Lapa D’Água and Lapada Anscente, that keep in their sedimentsfóssil animals (quotations from anturalist SPIXduring his trips in the North of Mians – XIXCentury), have oranmentations of greatbeauty, such as the formation of espeleotemvolcano very rare in Brazil, and others withmore than 1 km of underground river, in whichthere are beautiful waterfalls, 12 km far fromthwe city.

Lapa Grande is located in Vieira MountainRange, distinguishing itself from the othercaves, due to its importance in a regioanl level.It is considered one of the hugest of the statehaving 3 km2 of area. It has speleological,paleontologycal and as a landscape andtogether with Lapa Pintada, Lapa D’água andLapa Pequean creates a great scientificinterest compound.

Besides Lapa Grande group, Montes Claros hasstill the following touristic points:

Milton Prates Municipal Park: it has greenarea, lagoon, bicycle track; several animalspecies, restaurants, playground, courts withshower, soccer field. It is ideal for picnics. The

51

Municipal Zoo is localized nearby MunicipalPark with animals of several species.

Sapucaia Park: in Ibituruan MountainRange, Sapucaia Park is a forest reservation.Its is perfec for model aero-anutics, paraglide,picnics, mountain climbing and rousticrunnings.

Guimarães Rosa Park: Created by Munici-pal Law Number 793 of 1989, August the 7th,at the Carrapato Stream margins, urban zone,covering a 46,35 area and very little explored.

Center Market: where several products arecommercialized, mainly groceries, condiments,meat, cereal, beavarages, regioanl typical fruit,candies, dairy products, living fowls, clothes,

shoes, typical regioanl medicines andhandiworks in straw, wood and clay.

Hystoric architecture which composes theso called “old part of the city” with architectureconnected to the religious structure formed byCathedral, Our Lady Matrix and Saint JosephChurches; Matrix Plaza ans its old big houses.

Convention Center: Its in constructionprocess. It is associated to Technological Parkand it will allow the improvement of businesstourism actions, health education andentrepeneur events. It will guarantee thequality of such events to all participants,offering perfect meeting conditions asexpected of a Convention Center of thatimportance.

52



53

54



55

The great transformation of Montes Claroseconomy began after SUDENE’s implantationwhos fiscal and fiannce incentives throughFINOR allowed structural modifications in themunicipe reality improving local economy and,therefore, the regioanl economy.

The Industrial sector reaches a bigger impulseafter 1965 with the arrival of electric energyfrom CEMIG and with the beginning of effectiveSUDENE’s participation in the Industrialdevelopment in the region.

The local economy focused in the beginningin cutting cattle and milk followed byagriculture mainly products as bean, corn,manioc, cotton, watered rice, started to havein industry its main economy activity.

The Montes Claros Industrial District, Dr.Ubaldino Assis is located 5 km far fromdowntown in the road Montes Claros/Januáriawith 5 million km²/area. Considered as anexcellent option for any kind of company notonly due to its localization in SUDENE Minei-ra Area, but also to be close to the Center-South of Country and receives the Northeastincentives with the advantage of beingconnected to the greatest producers andconsumers centers.

The Industrial District has companies ofseveral industrial activities branches andtherefore can receive any kind of company inany kind of activity.

6.1. Entrepeneuring Tax:

The Entrepeneuring tax is got through thedivision of the number of resident populationby the number of micro and small companies

existent in the municipe. A number equal in-ferior to 40 inhab/1 MPE shows the plataformof high entrepeneur.

TABLE 12Montes Claros – Entrepeneuring Tax

MUNICIPAL ECONOMY

Source: Secretaria de Estado da Fazenda e IBGE

6.2. Municipal Institucioanl Quality Index:

Considering the last Census (IBGE – Census2000), Montes Claros presents an IQIM – Mu-nicipal Institucioanl Quality Index of 3,73 thatis superior to several municipes in Brazil. TheMunicipal Institucioanl Quality Index is gotstarting with three sub-indicator groups withidentical weight identified as: participaciondegree, fiannce capacity and maangementcapacity. The index varies from 1 to 6 and thehigher the value the better the institucioanl-political quality of the municipe.

TABLE 13Montes Claros – Municipal Institucioanl

Quality Index

6.3. Entrepeneuring Densification:

Regarding entrepeneuring densification, thelast available data (IBGE – 2005) show theexistence of a total of 11.931 formal companies,with a Occupied Population of 64.417 people,generating a total income of R$426.508.000,00, according to Table 14.

Source: Boucinhas e Campos

56



TABLE 14Montes Claros – Entrepeneuring Densification – 2005

6.4. Municipal Income:

The municipal income during last years showsa positive evolution, having grown in 200515,35 related to 2004, 16,15 in 2006 related to

2005 and 17,44 in 2007 related to 2006.

The Liquid Consolidated Debt in the TotalIncome kept itself in a normal pattern duringthe period and in 20% related to the legal limit.

TABLE 15Montes Claros – Public Fiannces Income x Debt: 2004 a 2007

Source: IBGE, Cadastro Central de Empresas 2005; Malha municipal digital do Brasil: situação em 2005.Rio de Janeiro: IBGE, 2007

Source: Table made by the author with available data given by Montes Claros City Hall.

57

The General Budget from Direct Administrationto 2008 has the total of R$ 439.515 mil.

6.5. GDP Behaviour:

The GDP- Gross Domestic Production, is oneof the main economic adjoined used to stablishthe production capacity of a determinedeconomy. Theoretically, GDP expresses theproduction sumo f goods and services of aneconomy, during a year period.

In Montes Claros case, the Tables from 15 to20 bring the evolution aanlyses of MontesClaros GDP having as reference the historicseries from 1995 to 2004, elaborated byEconomist Geraldo Matos Guedes.

The complete aanlyses shows the annual GDPgrowing trend as to market prices as to currentprices, adjoined and per capita. In mosto f theyears in the presented series, the GDP hasgrowth taxes as far more superiors than theBrazillian GDP growth taxes.

We point also the GDP composition in sectorial

terms. The service sector trends to superatein participation in the GDP composition theindustrial sector, reflecting the global trend ofincrement of services in the composition ofactual economies.

The GDP to market prices that in 1995 wasR$ 836 million, in 2004 it went to R$ 2.197billion, therefore with a 163% growth duringthe period, more than doubled in a 10 yearspace.

When one aanlise the Constant GDP, that isGDP to market prices getting out of it the pricegeneral variation and comparing to the yearbefore, one observes a GDP in 1995 of R$ 695million evolving in 2004 to R$ 2.031 billionshowing a 192% growth.

One can notice a growing trend of those twoitems (GDP PM and caonstants) in a parallelway what shows that in that period there wereno oscilations with great variations, except inthe years 1997 and 1998when those indicatorshad very close variations.

TABLE 16GDP PM and Montes Claros Constant: 1995 a 2004

Source: Guedes, Geraldo Matos.

On the other hand when one look to the growthtaxes of GDP to market prices and thecorrespondent real growth tax one can see thattax had a great variation in the period beingnegative in 2001 and almost nihil in 1998,with expressive growth 1996, 1997 and 2000,2003 and 2004. To real growth one see thatdecreased in 1999 and 2001 and with

expressive growths in equal periods to the GDPgrowth tax to marketr prices.

There is a similarity on the periods of 1998/1999 with what happened to Brazil, due to duringthat period there was a fiannce crisis and in2001 there was an electric energy crisis.(ROUBINI, 2008).

58



TABLE 17Annual Growth Taxes, IPCA and GDP Real Growth Tax in Montes Claros (1995-2004)

When one observe in a comparative way theGDP real growth of Brazil and Montes Clarosone can see a strong difference in its behaviourregarding 1995 for the first grew 2,15% andthe latter 52,03%. Special differences can beseen also in 1997, 2000, 2003 and 2004.

The strong growth verified in 1996 and 1997due to the fact that IBGE methodology passed toother considerations. As the Institute itselfexplains: “That series incorporates, totally, theannual IBGE researches, the annualinformation from Juridic Person Economic-Fiscal Information Declaration (DIPJ), added bythe Antioanl Classification of Economic ActivityDeclaration (CANE) code, the Family Budget


Research results from 2003, the Agricultureand Cattle Census of 1996 and actualizesconcepts and definitions introducing the lastrecommendations from UN and otherinterantioanl organisms”. In what is referedIBGE explains that “the new series of ancioanlaccounts will have as an initial reference theyear 2000 with more detailing of activities andproducts to the Use and Resources Tables andinstitucioanl sectors to Integrated EconomicAccounts. Fore the period before 2000 it wasdone the data retropolation up to 1995 withinthe information available, presumed a newseries of Use and Resources Tables in theclassification of the system already known,chained with the new 2000 series”. (IBGE,2007).

TABLE 18Real GDP Growth of Brazil and Montes Claros (1995-2004)

The Agriculture and Cattle sector representedin Montes Claros in 1995 only 2,60%, falling to1,44% in 2000, going up to 3,31% in 2002 andfalling to 2,85% in 2005 from total production,while industry had a representation of 48,83%,53,75%, 24,34% e 25,43%, respectively for theaanlized periods. We can point out therepresentative lost that the industrial segmenthad in 1995 to 2005 period.


On the other hand one can see that service

sector had a small representative lost to

added value generation from 1995 to 2000

falling from 48% to 45%; in 2002 it came to a

more expressive position, having been the

greatest GDP value generator in the years

starting in 2002, representing 58% of total

production.

59

TABLE 19Added Value (GDP) and Sectors Percentage in Montes Claros

Years 1995, 2000, 2002 and 2005

The per capita GDP to current prices in MontesClaros that in 1995 was R$ 3,2 thousand reais,ended 2004 with 6.5 thousand reais, being that


in 1998 e 2001 there was a falling of 1,55%and 3,97%. The greates growth was in 1996when that indicator has a tax growth of 27,75%.

TABLE 20GDP Per Capita to Current Prices in Montes Claros (1995-2004)

When one aanlises the GDP per capitabehaviour to current prices, taking out theinflation variation, one can see that it had avalue of R$ 2,5 thousand in 1995, going up in2004 to R$ 6 thousand reais, with an


expressive growth of 49% and with negativevariations in 1999, 2001 e 2002. The 1996strong growth happened because in that yearthe GDP had an expressive growth tax due to ametodology change in IBGE as explained before.

TABLE 21GDP Per Capita to Current Prices in Montes Claros (1995-2004)

6.6. Industrial Park:

Related to installed industries we can pointout: the greatest Condensed Milk Plant in theWorld (Nestlé), one of the three insuline plantsin Latin America (Novo Nordisk), one of themost modern textile plants (Cotemians Group)and the fifth greatest cement plant in Brazil(Lafarge).


6.6.1. Main industrial segments:

– Food:

Cardoso & Anscimento – Letícia Coffee:Triturated coffee, capuchinos and milk andcoffee.

Cooperativa Grande Sertão:

60



Food product manufactoring – fruit pulps.

Comercial Comar Ltda:Bisquit manufactoring.

Corby Comércio E Indústria De BebidasLtda.:Bevearage Plant.

Indústria e Comércio Bibi Ltda:Food product manufactoring (salty food andsweet popcorn).

Nestlé:The company has 26 units in Brazil being 5in Mians Gerais (Uberlândia, São Lourenço,Ibiá, Ituiutaba and Montes Claros in Northof Mians). Its unit in the production ofcondensed milk is the hugest one in LatinAmerica.

Pandy Indústrias Alimentícias Ltda:Fried potato industry.

Somai Nordeste S/A:Egg production plant.

– Biotechnology:

Novo Nordisk:The danish health company has two plantsin Mians Gerais installed in Montes Claros.In 2007, April it started the hugest insulinplant in Latin América in Montes Claros,which represented an investment aroundUS$ 200 million. With a constructed area of37.000 m², Novo Nordisk plant has advancedinsulin production technology. Responsiblefor the insulin production growth of 500% inthe country, the new plant has the capacityto produce 200 million of 3 ml refills forinsulin pens per year. Around 95% of totalvolume produced by the plant will be exportedto other countries as Germany, Áustria,United Kingdom, Ireland, Austrália, NewZeland and Caandá.

The company has a complete diabetesproduct portfolio, including advanced insulinaplication systems. Novo Nordisk is stillleader in areas such as coagulation and

growth disturbance and hormoanl repositiontherapy.

Vallée S/A:In the pharmacist branch, Montes Clarosunit founded in 1978, it produces veterianryarticles (vaccines, etc) of all classes, focusingproduction animals as cattle, pork, goat andhorse. Vallée has the most complete marketline in its segment.

– Civil Construction:

Antares Premoldados Ltda:Pré-moulding manufactoring (glazed claypipes, concrete blocks, blocos de concreto,groove, posts).

Construtora Novais Ltda:Construction and pavements.

Indumetal:Metalic structures, Fabricante de estrutu-ras metálicas, watertank and similars forindustries, commerce and regioanlagriculture and cattle production.

Lafarge Concreto S/A:World leader in construction materials, beingthe best in its all activities: Cement, concreteand Drywall. It has 71000 employees in morethan 70 countries. In Brazil, it employees 1,5thousand employees in units located in Riode Janeiro, São Paulo, Mians Gerais, Bahia,Peranmbuco e Santa Catarian States. Theplant in Montes Claros produces Portlandcement.

Pavisan:Asphalt industry.

– Logistic:

Atende Logística Ltda.:Wholesale merchant.

Distrinorte:Food distribution.

61

Distribuidora Xodó:Food distribution (candies).

Lima e Moraes Transportes EArmazeangem Ltda.:Transportation.

Mercolub Petróleo Ltda:Oil and lubricants Wholesale merchant.

Rodoviário Líder Ltda:Transportation.

Skol Distribuidora De Bebidas:Beavarage distribution (beer andrefreshment).

Tequimar:Warehouse services.

Transmoc Transporte E Turismo MontesClaros Ltda:Colective transportation services.

– Wood/furniture:

Expansão Indústria e Comércio Ltda:Wood development (Sawing and pré-cut wood).

Florestal Vale do Jequitinhonha Ltda. –Florevale:It produces wooden doors and it has aprojectthat will generate 200 new jobs in North ofMians and the Northeast. It receivedinvestments of US$ 5 million.

Mourões Touro:Production of prepared eucalyptus wood forseveral usages..

Refloralje Reflorestamento e AgropecuáriaLtda.:Production of prepared eucalyptus wood andreforest activities.

W. C. W. Móveis Decorativos:Produces furniture under requests, indus-trial, commercial and residential.

– Metalurgy:

Elster Medição de Água S.A.:

Produces advanced products and watermeasure intelligent solutions. Located inMontes Claros, it is part of Elster Group, thehugest company in water measure solutions,energy and gas. It is settled in more than 38countries.

Reboques Triunfo:Metalurgic industry (agriculture wagons,wheelbarrows, garbage containers)

Suporte Engenharia:Industrial mechanic montage.

Usiangem Santa Luzia:Metalurgic industry (trefilled in iron andsteel).

– Textile:

Cia de Tecidos Norte de Mians – CotemiansS.A.:Cotemians S.A. consumes annualy 100thousand tons in fibres - 12,5% of all ancioanlcotton consumption. It has four plants inMontes Claros from a total of twelve.Cotemians and coligated employee morethan 16 thousand people. In 2006 its totalincome was R$ 4,16 billion and liquid incomewas of R$ 3,57 billion. In its units it producesand distributes products that show greattrade marks in the market. They are lines,fabrics, T-shirts, socks, bath and face towels,nightgowns and blanckets for interanlmarket, United States, Europe and Mercosul.

Cia de Tecidos Santanense:Santanense has 3 plants in Mians Gerais(Itaúan, Pará de Mians and Montes Claros).The company ends 2006 invoicing R$ 293,4million. In 2004, Santanense was bought byCotemians.

Têxtil Paculdino S/A:Founded in 1981, it has modern technologythat produces lines Ne 24 e 28 and produceslines in air jact sewing machines of lastgeneration. Since 1997, it has ISO 9002Certificate given by german DQS. Thesewing, 6 months after implantation wasalready “certified”.

62



In textile segment we can point out theexistence of a Confection Pole whoseorganization is made by SINDVEST Norte –North of Mians Cloth Industry Syndicate whichunites 46 confection segment companies inMontes Claros. We may poin out in thissegment companies as Roka, Vértice,Tendelle, Gênios Uniformes, Divian Arte,among others.

– Others:

Denver S/A.Electrodes and solders plant.

Funcioanl Lavanderia E Higienização DeRoupas Ltda:Laundry services.

Hartmann Embalagens Montes ClarosLtda.:Moulded fibre package production.

Plásticos Vzp:Plasting package industry.

Reciplast:Recycling – recovered grain.

T & D Indústria e Comércio Ltda.:Cleaning material plant.

White Martins Gases Industriais Ltda:Medicianl gases plant and commerce.

6.7. Emplyment and Jobs:

In next boards we have the caracterization ofjob generation and employment apropriationin Montes Claros.

In 2006, according to Labour Ministry, therewere generated 54.909 formal jobs in the cityand 19% were occupied by people in the agegroup from 16 to 24 years of age. The proportionof men is still superior than women. Men got61% of the vacancies.

BOARD 9NUMBER OF FORMAL JOBS ON 2006, DECEMBER THE 31st

Source: RAIS/2006 - MTE

63

Comparing year 2006 with 2005 there was anincrement of 2.589 new jobs; positivevariation of 5%. Only the activities in PublicAdministration and Agriculture had a nonincrement during that period. The activity

that gave a great contribution for this fianlgrowth, was Services that, alone, generates2.924; it balanced the lost of 1.366 jobs inPublic Administration and 48 jobs inAgriculture.

BOARD 10FORMAL JOB VARIATION ON DECEMBER THE 31st

BETWEEN 2005 AND 2006

In terms of medium salary, the formal jobs inMontes Claros in the year of 2006, accordingto Labour Ministry was of R$ 778,71. Thefemale workers received lower salary thanmale workers. While a male worker receiveda medium salary of R$ 784,08, the femaleworker received R$ 769,99.

The activities with higher level in mediumsalary were Public Administration (R$ 972,45),

Services (R$ 929,98) and TransformationIndustry (R$ 861,99).

In case of male worker the highest mediumsby activity were Services (R$ 976,23), PublicAdministration (R$ 960,08) andTransformation Industry (R$ 901,54).

Female worker had the highest mediums inPublic Administration (R$972,45) and inServices (R$929,98).

Source: RAIS/2005 e 2006 - MTE

64



BOARD 11MEDIUM SALARY FROM FORMAL JOBS IN 2006, DECEMBER THE 31st.

Source: RAIS/2006 - MTE

Considering the formal job floating in the 2007,January to December period, Montes Clarostried a positive balance of 2.608 newvacancies, facing 21.549 employments and18.941 discharges.

The activities that gave more contribution forthat positive balance were Commerce (1.005of balance) and Services (783 of balance).Those are also the activities with higherfloating in tyhe period regarding employmentsand discharges.

65

In terms of medium salary admission, thebest paying activities in the period of 2007,January to December were Public

Administration (R$868,20) and Public UtilityIndustrial Services (R$ 890,00).

BOARD 13ADMISSION MEDIUM SALARY

2007/Jan to 2007/Dec

BOARD 12FORMAL JOB FLOATING2007/Jan to 2007/Dec

Source: CAGED/MTENote: In total, “Ignored” are not included”

Source: CAGED/MTENote: They were considered only admissions with a validadted salary;

66



6.8. Fiscal and Fiannce Incentives:

The municipe of Montes Claros has severaloptions on fiannce and fiscal incentives toentrepeneurs who intend to instal theirproductive units here. The incentives are inthe three circles – municipal, state and fede-ral.

6.8.1. Municipal Incentives:

The municipe of Montes Claros has a group offiscal incentives for installation andampliation of companies through its Social andEconomic Development Municipal Board.

The incentives ruled by Complementary Law04/2005, Law 2.300/95 and Decree 2.283 of /2006/10/26. The icentives ruled byComplementary Law are:

Doantion and subsidy for land areapurchasing;

Partial or total IPTU – Urban Real Etate andContry Real Estate Tax and of ITBI – Real EstateTransmission exemption up to 10 years;

Partial or total ISSQN – Tax over Any AntureServices exemption up to 10 years;

Taxes, Contributions and Public Pricesexemptions up to 10 years.

For Technology or Strategycal companies thereis a possibility of icreasing of incentive anddifferent treatment in its aplication.Strategycal companies are semiconductor,software, equipment and drug/medicinecompanies. Technology companies are theones whose activities are related to the future(biotechnology, annotechnology and biomass/renewal energy).

6.8.2. State Incentives:

Mians Gerais State supports allentrepeneuring iniciatives within the state.In North of Mians, and therefore Montes Cla-ros, we can point out:

Geramians:

Credit line for micro and small companies andcooperatives that need to restructure theirbusiness and increases their participation inthe market. This credit line is perfect tor thosewho need to increase its capital or to invest inincreasing, readequation or modernization offacilities, equipment and products or services.Only the companies fitted in Simple Tax or thatmade an option for Foment and Social andEconomic Development of Mians gerais State(Fundese), up to 2007, June the 30th, canrequire fianncing.

It can fiannce circulating capital; machinesand equipment; civil constructions and landarea purchasing with commerce destiantion;commercial vehicles; furniture and utensiles;informatization; training; product and processdeveloping, including expenses withpurchasing, absorption and adaptation oftechnology and technical assistence. Thefiannce value varies from R$ 5 thousand to R$360 thousand, with a percentage of 1% of thefiannce value that is discounted when theresources are liberated. The stated period canbe of 36 months with three months shortage.

Machine and implementation fianncing foragriculture sector – BDMG Agrobusiness:

Fianncing for agroindustrial or forest antioanlor foreigner companies of any size, includingcooperatives; for industrial or forest antioanlor foreigner companies; for the countryproducer through credit cooperatives belongingto Mians Gerais Central Credit Cooperative(Credimians); to physical or juridic people inentrepeneurings directly or indirectly to JaíbaProject or other country programs. Credit forfixed or semi-fixed investments, machine oragricultural implements of antioanlmanufactoring and environmental licence andtechnical assistence. It has a cover up to 80%of project cost with taxes of 11,25% per yearaccording to used line credits, subjected to

67

consultation. Adding information can be got inthe electronic address http://www.bdmg.mg.gov.br/solucoes_bdmg/bdmg_agronegocio.asp.

Fianncing for implementation of any sizecompany – BDMG Implantation:

Fianncing for implantation of micro, small,medium and huge companies coveringinvestments in construction, installing,machine, vehicle, equipment purchasing,product, process and service developing. It hasa cover up to 60% of project cost and up to 80%for companies installed in Royal Road circuitwith taxes of 12% per year, according to usedline credits and stated period up to 96 monthswith 24 months of shortage; for micro andsmall companies stated periods up to 60months with 12 months of shortage. Addinginformation can be got in the electronicaddress http://www.bdmg.mg.gov.br/solucoes_bdmg/bdmg_implantacao.asp.

6.8.3. Federal Incentives:

6.8.3.1. SUDENE:

The Northeast Development Superintendency– SUDENE is a special federal company,administrative and fiancely independent, thatintegrates the Planning System and FederalBudjet, created by Complementary Law number125, from2007/03/03, with headquarter inRecife, in Peranmbuco State and connected toIntegration Antioanl Ministry.

SUDENE has to estimulate through incentiveadministration and fiscal benefits, theprioritary private investments, the productiveactivities and developing sub-regioanliniciatives in its acting area, according theDeliberative Board definition from paragraph2º from art. 43 of Antioanl Law and accordingto current law.

Fiscal Benefits allowed: IRPJ Reduction for newenterprises, IRPJ Reduction for existent

enterprises, IRPJ re-investments, IOF andAFRMM exemption, Incentivated acelarateddepreciation and discount for the PIS/Pasepand Cofins contribution.

6.8.3.1.1. FNDE:

The Northeast Developing Fund – FNDEobjectives to assure resources to invest in theacting area of Northeast DevelopmentSuperintendency – SUDENE, in ifra-structureand public services and in productiveenterprises with great germiantive capabilityof new business and new productive activities.

For the enterprises of juridic people interestthat are implanted, improved, modernize dordiversified in SUDENE’s acting area, FNDEparticipates up to 60% of total investment,limited to 80% of the fixed investment andrepresented by the subscription andintegralization of convertable debentures inshares emited by project responsiblecompanies or their holdings. The convertibilityis limited to 50% of the subscripted amount ofthe debentures when they are infra-structureprojects or 15% for other sectors enterprises.

The stated period is up to 20 (twenty) years forthe infra-structure projects and up to 12(twelve) months for the other enterprises,including the shortage period. Otherconditions and regulations can be checked inthe eletronic address http://w w w . s u d e n e . g o v . b r / s i t e /menu.php?cod=173&idioma=ptbr&hotsite=0.

6.8.3.1.2. FNE:

The Northeast Fianncing Constitutioanl Fund– FNE objectives to contribute for the economicand social development of Northeast, throughthe federal fiannce institute of regioanlcharacter, excecuting fianncing programs toproductive sectors, according to respectivedeveloping regioanl plans.

Its destiantion is the country producers,indidual companies, juridic people, production

68



association and cooperatives that developactivities in agriculture, cattle, mineral, in-dustrial, agroindustrial, touristic, infra-structure, commercial and service sectors.

Its fianncing limits, stated periods andgurantees are according the line credit anture,the taker, the size and fianncing programs andcan be consulted in the address http://w w w . s u d e n e . g o v . b r / s i t e /menu.php?cod=213&idioma=ptbr&hotsite=0.

6.8.3.2. Northeast Brazil Bank:

The Northeast Brazil Bank A. S. is the largestregioanl development bang in Latin Américaand its mission is acting as S. A. é o maiorbanco de desenvolvimento regioanl da Améri-ca Latian com a missão de atuar, an agent forthe sustaianble development in the Northeastintegrating it into the antioanl economydyanmic.

Regarding fiannce incentives to entrpeneursfrom the more varied sizes and segments,Northeast Bang acts, among others, in:

Grow Northeast:

With resources from Northeast FianncingConstitutioanl Fund – FNE, it was created GrowNortheast, a fianncing program with lowpwercentages and longer stated periods madefor company owners and entrepeneurs in allBrazil who want to invest in the region. Theyare R$ 3 billion in credit lines available inspecial conditions for several sectors. Its maingoal is to promote the growth of economicactivities on sustaianble bases, strenghted theinteranl market.

Grow Northeast will benefit entrepeneurs ofall sizes in industry, commerce, services, cul-tural, tourism, grains, apiculture, cattle, rawmaterial, goat, fruit culture and flower culturesectors, besides family agriculture.

Crediamigo:

Productive Microcredit Oriented Program fromNortheast Bank that facilitates the access tocredid with solidary guarantee to thousand ofentrepeneurs that develop activities relatedto production, commerce and services.Associated to credit, Crediamigo offers to theentrepeneurs orientation and follow up thebest aplication of the resource, thereforeintegrating them in a competitive way into themarket.

FINOR:

The Northeast Investment Fund – FINOR is afiscal benefit allowed by the FederalGovernment and created by Decree nº 1.376of 1974.12.12. Made of resources applied inshares and debentures, it supports fianncelyinstalled enterprises or to be installed in theacting area of the extinct NortheastDevelopment Superintendency – SUDENE.

Reinvestiment:

Fiscal benefit created by the FederalGovernment that allows companies from in-dustrial, agroindustrial, infra-structure andtourism sectors, considered prioritiesaccording Decree nº 4.213, from 2002/04/26that are in operation in the NortheastDevelopment Superintendency – SUDENEarea, to re-invest in their own equipmentmodernization or complementation projects.The re-investment corresponds to 30% of theIncom Tax in debt, calculated over theexploration profit, added with other parcel (50%from the 30%) of Self Resources.

In order to do so, the company must opt for theincentive in the Income Declaration anddeposit the correspondent values in NortheastBank agencies, remaining that amount, whilenot applied, reserved and preserved in aremunerated account, based on ExtramarketTax stated by Brazil Central Bank from thedeposit date up to its effective liberation.

69

The guarded values in BNB may be used foralready made expenses refunds in thecalendar year corresponding to the option orto purchase new equipment.

Besides, Northeast Bank has several options

of fiannce support for implantantion and

ampliation of business units in Agroindustrial,

Commerce and Services, Industrial, Country,

Tourism and Technology with or whithout

associatede circulating capital.

70



71

72



73

In the context of a city as Montes Claros,where there are an expressive number ofinstitutions turned to universitary education,technical and specialization forming, by theside of developing and research units andliving up with culture, arts, memory andpatrimony entities, the association withproductive capital creates a favourableenvironment to new business and it is theimproving for the existent ones.

With its economic dyanmism, cofirmed by thepresented data, it opens a space to suggestsome potential activities and for all North ofMians Region, area which Montes Claros po-larizes the economy, society and policy.

They may be considered existing potentialitiesin Montes Claros:

1. AGROENERGY:

The main objective of Research, Development,Inovation and Technolgy Transfer inAgroenergy is to develop and transferknowledge and technology that may contributefor a sustaianble of energy agriculture and theratioanl use of renewal energy objecting thebrazillian agrobusiness competitivity and thesupport to public policies.

In this segment, a great opportunity ofinvestment in the support to energetic matrixchange through installation of processing ofbiofuels units. (alcohol, biodiesel).

Within incentive program to Biodieselimplanted by the Federal Government, Mon-tes Claros receives in 2008 one of the threecompounds of industrial units for biodieselproduction of Petrobrás, with a forecasted

POTENCIALITIES

investment of R$ 80 million.

In Montes Claros industrial compound therewill produced around 48 million litters ofbiodiesel per year, generated a presumedincome of 50 million reais, in the period forthe raw material producers, what envolvesaround 15 thousand families.

According Mianspetro, Montes Claros has theFuel Distribution Base, with 4,5 million litterscapacity, what is a strong stimulus forinvestors in that activity.

2. BIOTECNOLOGY:

In the biotechnology field the city polarizes asingular condition and may allow a local/regioanl acting focused in several alterantiveof investments in the sector. We may pointout: regioanl bioma, animal agrobiotechnology(cattle, goats, sheep, proks, fish and smallanimals), vegetable (regioanl culture, baanans,fruit, silvicultura, cotonicultura, fitocultura),production of genetyc solutions, medicines,veterianry vaccines, veterianry products,plague control, cloning banks, geneticallymodified organisms, inoculed agriculture,nutraceutics, pathogenyc culture, sinthetycproteins, soil recuperation, re-vegetation,biosafety, sinthetic fibres, imunization.

3. EDUCATION:

With the consolidation of the State Universityof Montes Claros as a reference in the AntioanlUniversity Education, Montes Claros has livedeach year with the increasing for that service.Therefore Montes Claros has a potentialmarket for investments in professioanlizingeducation, in graduation courses, post

74



graduation courses, long distance and virtualeducation, besides the technical study thatalso has an increasing demand for newprofessioanls because of the growth of the in-dustrial, commercial and services activitiesin town.

As a consequence of that consolidation emer-ges a whole demand for complementary goodsand services offering in house building, feedingand transportation systems.

4. FRUITCULTURE:

Not only Montes Claros but also the whole areathat is influenced by it, has the hugest fruitplanted area and the irrigated fruit area getsa strong business opportunity in cultures asbaanan, orange, graviola, maracujá, mango,pequi, avocado, lemon and others.

Besides the in-antura fruit production, thereis a great potential – perhaps even greaterthan the first option – directed to theconsolidation of an infrastructure for theagricultural business support (credit,transportation and stocking) and theinstallation of business facilities that mayprocess the products and add value to theregioanl/local production.

5. CATTLE FOR CUTTING:

In Montes Claros we have the hugest numberof cattle and the one that more grows in theinfluence region of the town. This activity,whose tradition started 100 years ago, is goingto consolidate the region as the main one inthe State. It is forecasted for this activity amedium growth of 5% per year for the next 10years, an economic growth from 15% to 25%,with specific and qualified cattle for exportationand availability for land at a low cost. Thosefactors allow a significative reduction ofproduction costs and increasing profits interms of rentability.

6. INFORMATION TECHNOLOGY:

Montes Claros demands and presentsconditions for the increasing of local businesswith local/regioanl/antioanl acting in the netsand portals segments, e-commerce platforms,commodities market, informatized invoice“cim”, applications turned to the agriculturalbusiness, cryptography of data, biotechnologysupport, etc.

7. TEXTILE:

By the tradition of the region and because ofthe companies already installed in MontesClaros as in netting and fabric segment as inconfection, the towns is going to consolidate itself into a Regioanl Pole in confections.

All this taking advantage of a very good sceanriothat is drawn for the next years, sustainedamong other factors:

Annual growth of 3,9% of the worldconsumption for textile fibers;

Growth of textile world commerce on a tax of5,6% per year, forecasted to surpass theplatform of U$ 800 billion in 2015;

In Brazil, in period between 1995 and 2006,the production increases 12,0% but theconsumption increased 23%, which indicatesthat part of this major demand wascompensated by the reduction of exportationsand for the growth of the importations;

anos, sustentado entre outros aspectos por:

8. TOURISM:

Montes Claros is located in a strategic regionin the South/Southeast Pole and Northeast ofBrazil extremely rich in touristic aspects:regioanl cooking, geographic aspects, historicand artistic patrimony, etc.

This activity, explored professioanlly, presents

75

several options, from the leisure tourism toevents and business tourism, through eco-tourism, and through culture, cooking and lo-cal art.

The business regioanl tourism has its strongdot in events such as Fenics, Expomontes,Seminário Varejista Norte de Mians, Exposi-ção Agropecuária de Jaanúba, Festival da Ca-chaça em Salians, among others. The cultu-ral tourism includes the Festas deAgosto,Festival Interancioanl do Folclore, Fes-ta Ancioanl do Pequi, etc. In the EcologicTourism, the region has Parque Estadual LapaGrande (the hugest complexo of caves andcreatedrs of Mians Gerais), Parque Estadualde Grão Mogol, Parque Estadual Caminhos dosGerais, Parque Estadual do Verde Grande, Par-que Estadual de Serra Nova, Parque AncioanlVale do Peruaçu, Parque Ancioanl Grande Ser-tão Veredas.

9. HEALTH:

The improvement in the forming ofprofessioanl in superior level in severalspecialities by local educatioanl sector and theimprovement of local demand for medium andhigh complexity health care transform Mon-tes Claros into a great potencial for investmentwiyhin this segment.

Montes Claros is responsible for solutions tohealth problems of media and high complexityfor a group of more than 150 municipes fromSUDENE Mineira Area and the complete BahiaSouth region, which correspond to a populationaround 2 million inhabitants. Thus, theformation of graduated students is increasedin several specialities.

10. FENICS – A UNIC OPPORTUNITY CASE:

The history of Feira Ancioanl da Industria,Comércio e de Serviços de Montes Claros –FENICS is a history of idealism and superlationof Associação Comercial, Industrial e de Ser-viços of Montes Claros – ACI. There were 13

editions on which the gains were consecutiveand the evolution, constant.With the supportof private companies, public entities andfoment organs, the major objective of FENICSis to stimulate the growth of all sectors ofbusiness speeding their conquests.

The Fair has as visitors entrepreneurs, libe-ral professioanls, business owners, studentsand public in general, with a number around80000 people by event. With a total area of 38thousand m², the Fair contains 230 stands anda number around R$ 110 million in generatedbusiness.

ACI is located ahead time with proposals andinnovated ideas. The entity organizes itself,proposes strategic plans and draws importantlines for the social-economic development. Tojoin the private and public powers plus theorganized society for that development is, nodoubt, a step further to achieve an objective:the motivatioanl strength that gives theentrepreneurs an impulse to success.

The fair has as partners the Montes ClarosCity Hall, Ibituruan College, SEBRAE, NovoNordisk, FIEMG, Northeast Bank, Caixa Eco-nômica Federal, INDI and IDENE. And assupporters Music Scholl Lorenzo Feranndez,Brazil Bank, ESURB, CEMIG, BDMG, HealthPlan São Lucas, Vallée, Lafarge, Itatiaia Radioand SICOOB CREDINOSSO.

The Fair has as visitors company owners, li-beral professianls, entrepeneurs, students andgeneral public. It makes available for theexposers stands with basic construction madeof division walls in panels in white, carpet,special roof made of alumnium, lighting and astandardized identificafion plate with adesiveblack letters.

Event General Data:

Visiting Public: 80.000 people

Total Area Total: 38.000 m²

76



Fair Area: 21.000 m²

Parking Area: 17.000 m²

Covered Area: 8.000 M²

Number of Stands: 230

Presumed Generate Business: R$ 110Million

FENICS keeps a permanent gate for visitors

and investors contacts through the eletronicaddress http://www.fenics.com.br/fenics/index.htm.

Very soon, it will begin the construction ofConvention Center in a 50.000m² area, withan investment forecasted of R$12 million. Italso is in negotiation the installation of aresearch unit of EPAMIG in Parque Tecnológico,with the implementation of Nucleo de P&D eInovação em Biodiesel and new cultures.

77

Associação Comercial e Industrial de Montes

Claros – ACI. Disponível em: <http://

www.acimoc.com.br/indexaci.htm>. Acesso

em: 02 jan. 2008/ em: 08 jan. 2008/ em: 21

jan. 2008.

Associação Comercial e Industrial de Montes

Claros – ACI (Org). Prioridades para o

desenvolvimento sustentável e integrado no

Norte de Minas. Montes Claros, 2002.

Departamento de Estradas de Rodagem do

Estado de Minas Gerais – DER-MG.

Disponível em: <http://www.der.mg.gov.br/

index.php?option=

com_ponygallery&Itemid=168&cid=500>.

Acesso em: 04 jan. 2008.

Empresa de Assistência Técnica e Extensão

Rural do Estado de Minas Gerais – EMATER.

Disponível em: <http://

www.emater.mg.gov.br>. Acesso em: 03 jan.

2008.

FUNDETEC-Fundação de Desenvolvimento

Científico e Tecnológico da Agropecuária

Norte Mineira. Projeto para instalação dos

Núcleos de Pesquisa, Desenvolvimento e

Inovação em Agroenergia, Sistemas

Organizacionais Computacionais, TIC Saúde,

cerrado e Incubadora Tecnológica de Empresas

do Parque Tecnológico de Montes Claros.

Montes Claros, 2007.

GUEDES, Geraldo Matos. Análise do

Comportamento do PIB no Município de Montes

Claros-MG, nos Últimos Dez Anos: 1995 A

2004. Artigo. Universidade Estadual de

Montes Claros. Montes Claros, 2007.

INDI-Instituto de Desenvolvimento Integrado

de Minas Gerais – Diretoria de Estudos

Prospectivos e Informações Estratégicas/

Unidade de Avaliações Econômicas

Regionais. Perfil Industrial das Regiões Norte

de Minas, Jequitinhonha/Mucuri e Rio Doce.

Belo Horizonte, 2008.

Instituto Brasileiro de Geografia e

Estatística. Perfil dos municípios brasileiros

2006. Rio de Janeiro, 2007.

PNUD-Programa das Nações Unidas para o

Desenvolvimento et alli. Atlas de

Desenvolvimento Humano no Brasil. Software.

Rio de Janeiro, 2003.

Prefeitura Municipal de Montes Claros -

http://www.montesclaros.mg.gov.br/;

acessado em 02/01/2008, em 05/01/2008,

em 08/01/2008.

Prefeitura Municipal de Montes Claros/

Secretaria Municipal de Desenvolvimento

Econômico. Coletânea de informações sobre o

município de Montes Claros. Montes Claros,

2007.

RedeNorte – Associação Nortear. Proposta de

Localização dos CVTs e Telecentros de

Informação e Negócios. Montes Claros, abril

de 2004.

REFERENCES

78



SEBRAE et alli. Caminhos para o

desenvolvimento. Software. Belo Horizonte,

2006.

SOARES, Gilberto Wagner. Influência dos

custos na formação do preço de venda em micro

e pequenas empresas do ramo de confecções

em Montes Claros – um estudo de caso.

Monografia. Montes Claros, Unimontes,

Novembro, 2005.

SUMA ECONÔMICA Consultoria e

Publicações. Edição 358, Fevereiro 2008. Cop

Editora Ltda. Rio de Janeiro, 2008.

UNIMONTES-Universidade Estadual de

Montes Claros, Departamento de Economia,

Índice de Preços ao Consumidor da Cidade

de Montes Claros - Disponível em: <http://

www.unimontes.br/pagina.php?param=

ipc&option=variacao_ipc_ano>. Acesso em:

28 jan. 2008.

www.diarioon.com.br/arquivo/3828/

economia/economia-24717

www.hojeemdia.com.br/v2/

index...1&noticia=6140

www.aneel.gov.br

www.montesclaros.mg.gov.br

www.valle.com.br

www.vemade.com.br

www.ibge.gov.br

www.lafarge.com.br

www.unimontes.br

www.elster.com.br

www.facit.edu.br

www.facomp.edu.br

www.fasi.edu.br

www.fip-moc.edu.br

www.funorte.com.br

www.novonordisk.com.br

www.santoagostinho.edu.br

www.unipacmontesclaros.com.br

www.sudene.gov.br

http://www.vallee.com.br

http://www.bancodonordeste.com.br

http://www.bdmg.mg.gov.br

79

80



81

82



83

84



85

86



87

88



89

90



91

92



Documents

Associação Commercial, Industrial and - Brasil economico/div_ind-com... · Alexandre Pires Ramos - Vice-President ... Ariovaldo de Melo Filho César Silva Campaante Durval Alexandre