GOVERNO DE SERGIPE

SECRETARIA DE ESTADO DO DESENVOLVIMENTO ECONÔMICO E DA CIÊNCIA E TECNOLOGIA

INVESTMENT OPPORTUNITIES IN THE STATE OF SERGIPE Despite being the smallest state in Brazil, with an area of 21,910 km2 and 2.1 million inhabitants, Sergipe has a privileged geographic location in the central axis of the main markets in the Northeast, and the best socioeconomic data in the region. The capital, Aracaju, was elected, in a survey conducted by Getúlio Vargas Foundation and commissioned by Ministry of Health, as the capital of state with the best life quality in the country as a result of the sum of good health habits of its people developed by public actions and policies that have promoted the urban development and welfare of the community. According to the data of IBGE (Brazilian Institute of Geography and Statistics), the Gross Domestic Product of the state has totaled R$ 19.6 billion in 2008, giving the state the best GDP per capita (R$ 9,779) in the Northeast. The Services Sector is the most representative in the state corresponding to 61.8% of the GDP, followed by Industry with 33%, and then Agriculture with 5.2%. Proportionally, the Industrial Sector in the economy of Sergipe has the greatest weight in the Northeast, making the former the key-sector to reach the socio-productive development. Among the industrial segments, it is possible to highlight the Natural Resource Extraction, with the exploitation of abundant richness of the subsoil of Sergipe, specially the non-metallic minerals, such as cement, gypsum plaster, carnallite and sylvanite (potassium), and clay, which are essential inputs in the productive chain of civil construction and industry of fertilizers. Still in the extraction segment, Sergipe stands out as the fifth largest domestic producer of oil and fourth producer of natural gas. In the Manufacturing Sector, the divisions that stand out in Sergipe are: fabrication of non-metallic mineral products (cement, plaster and pottery); textile industry – the most traditional of the state; footwear industry – the fastest growing segment of Sergipe in recent years; chemical industry, especially cosmetics; food and beverage industry; fabrication of furniture, truck bodies, and wooden products; garment industry; shipbuilding industry and metal-mechanical production chain. Sergipe is a national reference in the production of electricity from Xingó Power Plant, the 3rd largest country in capacity, with a potential of 3.16 million kW, and located in Canindé de São Francisco, on the banks of the São Francisco River. Besides the electric potential, the São Francisco River offers visitors to Sergipe beautiful tourist attractions, such as canyons and freshwater beaches; they also can enjoy a coastline of 173 km consisted of beautiful and environmentally preserved beaches, and the rich historical and cultural heritage that make Sergipe a great potential for visitation, and which has experienced significant growth in tourism, besides having good infrastructure for tourism events.

Sergipe has a renewed highway network, and is cut by the main federal highway, BR-101; in addition, it is also located between Recife and Salvador, the largest metropolitan areas in the Northeast, allowing the state to reach a consumer market of about 50 million people, with a GDP of U.S. $ 395 billion within a radius of 1,000 km. Sergipe: strategic location in the Northeast and market range as far as 500 km and 1,000 km

Source: IBGE Prepared by: DET/SEDETEC Legend Urban Centers

- Capital of the Country - Capital of State - Municipality Headquarters

Access Roads

- Paved Roads - Earth - Railways

Boundaries

- State - International

Scale Polyconic Projection International Reference Meridian (IRM): -54° W. Gr Reference Parallel: 0°

The industrial infrastructure of Sergipe consists of 5 districts, 39 nucleuses, and 2 complexes, besides an offshore grain port. The State Government is also investing in the implementation of Integrated Business Complexes (IBC) that are industrial districts, uniting warehouses equipped with all required infrastructure, a Trade Center, and a Technological Vocation Center (TVC) for manpower training and qualification. Sergipe is a state of great opportunities that offers the best location and tax benefits in the country through its Industrial Development Policy - PDI-SE and the Sergipe Industrial Development Program (PSDI) LIST OF PROJECTS AND OPPORTUNITIES OF INVESTMENT Export Processing Zone – EPZ-SE Responsibility: State Government Region: Municipality of Barra dos Coqueiros Type: Implementation (Infrastructure and Industry Attractiveness) Estimated Amount: US$ 50,000,000.00 Investments: State Government and Private Initiative Description: A spatially bounded Free Trade Area with the purpose of implementing enterprises which are aimed at the production of goods to be commercialized overseas, and considered as being a primary zone for the effect of customs control. It allows up to 20% of the sales to the domestic market, and the companies established therein are granted tax, exchange-rate, and administrative benefits. The EPZ is located in an area of 425 hectares in the municipality of Barra dos Coqueiros, in the surroundings of the Port of Sergipe, which facilitates it to receive inputs and export goods. Factory of Washing Soda Production of synthetic washing soda (sodium carbonate) Suggested Capacity: 500,000 ton/year Location: to be determined Raw-matter: Halite (rock salt) and limestone – abundant in Sergipe Market: domestic (Brazil imports 100% of its consumption – 700,000 ton/year) and export possibility. Investment Costs: US$ 500 million Industry of Sodium Chloride The reserves of sodium chloride already quantified, associated with the important infrastructure and geographic location, make the State of Sergipe an essential target for establishment of a sodium chloride complex. These reserves are located in the eastern part of the state, in an area of sedimentary basin. They are deposits in shallow depths, and which have thicknesses ranging from 100 to 300 meters. Another aspect of great importance is the degree or purity of the sodium chloride that is observed in all deposits. In order to supply the huge amount of electric power required for the maintenance of a sodium chloride industry, Sergipe has the support of a source that is located inside of its own territory and which is property of the São Francisco Hydroelectric Company, whose production is locally distributed by the ENERGISA Concessionaire.

Production of chlorine, alkalis, and derivatives Capacity: to be determined Probable location: municipalities of Rosário do Catete and Siriri Market: domestic (imports of soda in 2010 were 19.7% higher than the total recorded in 2009) Investment: to be determined Possibilities Partners: PETROQUISA, DOW CHEMICAL, BRASKEM Industry of Cement (Limestone) The state of Sergipe holds a significant reserve of limestone, distributed in a large number of deposits which cover not only the region of sedimentary basin, but also the area covered by the crystalline rocks. In all deposits, the limestone presents a great chemical and mineralogical variety. In the region of crystalline rocks, where the limestone is not very used in industry, the limestone of metamorphic origin stands out, forming extensive deposits, spread in different municipalities in the western region of the state, in a radius that reaches 150 km over the capital, Aracaju. In the sedimentary basin, the calcitic limestone is equally abundant and is used as raw material in various industries, including the production of Portland cement. For the production of cement, other inputs are also abundant, such as energy, ferrous and siliceous clays, and silica. Sergipe Cement Yard has already 3 units Production of Cement Capacity: 1,500,000 ton/year Location: municipalities of Laranjeiras, Nossa Senhora do Socorro, Santo Amaro das Brotas, Simão Dias Market: northeast of Brazil (the forecast of increase of the input for the northern region is 14% per year) Investiment Costs: to be determined Possible Partnerships: CSN, Camargo Correa, BRENNAND. Wind Power Responsibility: CODISE – Companhia de Desenvolvimento Industrial e de Recursos Minerais de Sergipe (Sergipe Natural Resources and Industrial Development Agency) Sector: Electric Power Region: Sergipe Coastline Type: Implementation Estimated Investment Costs: US$ 58,000,000.00 Investments: State Government and private initiative Description: Sergipe has potential in the production of wind power, which may be exploited throughout its coastline. Preliminary studies indicate potential for the implementation of wind farms (regular winds at appropriate speeds) Capacity: to be determined