The Industry in Santa Catarina

May 2005

 

The immigrants who came to Santa Catarina were provided with small pieces of land on which they started to build up an industrial base of smaller companies. The industry was very fragmented at that time and at the end of the 19th century only textile, agriculture and forestry were showing some growth.

In the beginning of the 20ths century, new segments developed from these basic industries, such as pulp & paper, food, and furniture, while some new industrial segments were developed, like metal and ceramics. At this time, many companies started to grow strongly, driver by the demand in Sao Paulo. And during the political industrialization between the 50ths and the 70ths, it was mostly the largest companies that benefited, whereas the current industrial structure in Santa Catarina were established; a few large and many smaller companies.

The textile industry is the oldest segment in Santa Catarina. It all started in Blumenau, with German immigrants, and the segment is known for the quality of its product, although the export is limited with the exception of a few companies.

The agricultural segment in Santa Catarina has throughout the years developed some of the largest companies in Brazil, and is today the largest exporter in the state. The industry is mainly concentrated in the continental Santa Catarina, where large commercial companies live in tandem with smaller farmers that still survive on a few acres.

The pulp & paper industry was a natural off-spring from the forest industry and is still present although most companies have been acquired by larger companies from other states in Brazil. The center of this segment is located some 250 miles from the coast line.

The furniture industry did also derive from the forestry and one of the larger pools in the country is situated in the city of Sao Bento do Sul, in the northeast of Santa Catarina. The progress of the export in this industry has been good the last years.

The ceramic industry, above all production of tiles, started very early to compete on the world market, and the companies in Santa Catarina are today very competitive. They stand for 50% of Brazil’s total export in this segment, and the most successful companies have maintained a strong position on the world market by continuous investments in their production facilities and quality of the products. It is also typical that the most successful companies are located in areas with a strong Italian heritage.

The plastic industry has shown strong growth the last decades and a couple of companies in Santa Catarina have grown large nationwide by renewing the construction industry.

There are a couple of heavy companies within the metal industry who are concentrated on producing parts to the auto industry, but there are also many smaller industries that focus on making small series of complex products. The metal industry is mainly concentrated in the northeast of the state and in Vale de Itajai, areas with a strong German influence.

Some companies are producing machineries or solutions, from appliances to generators and other high-voltage equipment. WEG, that manufactures electromechanical equipment, has grown heavily the last years by purchasing factories all around the world, maybe the only truly transnational company in Santa Catarina.