Brazil’s industrial landscape is set to expand with the approval of several major projects across its Export Processing Zones (ZPEs). The National Council for Export Processing Zones (CZPE) recently greenlit four key ventures, aimed at boosting export-oriented production, sustainable energy, and regional economic growth. These projects range from timber manufacturing in Mato Grosso to the renewable fuel refinery and green hydrogen plant, solidifying Brazil’s commitment to industrial modernization and environmental sustainability.
New Teak Wood Factory in ZPE de Cáceres (MT)
One of the notable projects approved by the CZPE is the establishment of a teak wood production plant in the ZPE de Cáceres, Mato Grosso. The anchor company, TRC, plans to manufacture teak wood boards, blocks, and decks, primarily for export. This venture represents a total investment of R$ 24 million and is expected to create 140 direct jobs in the region. The project will play a crucial role in securing the economic and financial viability of the ZPE de Cáceres, positioning it as a competitive hub for wood product exports.
Teak wood is highly valued in the international market for its durability and aesthetic appeal, making this project a strategic move for both the company and the regional economy. The ZPE designation offers significant advantages, such as tax breaks on imported machinery and materials, boosting the competitiveness of the products on the global stage.
Green Hydrogen Hub in ZPE de Pecém (CE)
In Ceará, the ZPE de Pecém is set to host Brazil’s largest green hydrogen production project. Spearheaded by Brasil Fortescue Sustainable Industries Ltda, the project entails an investment of R$ 17.5 billion and will have an initial production capacity of 1.2 gigawatts (GW), with the potential to expand to 2.1 GW in later phases. This initiative aligns with Brazil’s Mission 5 of the Nova Indústria Brasil (NIB), which focuses on bioeconomy, decarbonization, and energy security.
The green hydrogen plant is a significant step toward Brazil’s energy transition goals, reducing the country’s carbon footprint while promoting the use of clean energy sources. The project also emphasizes the use of domestic goods and services, alongside investments in research, development, and innovation. With the potential to create over 9,000 direct and indirect jobs, the plant is expected to start operations in 2028, following an implementation phase starting in October 2024.
Renewable Fuel Refinery in ZPE de Bacabeira (MA)
The ZPE de Bacabeira, located in Maranhão, will soon be home to a modular fuel refinery focusing on the production of renewable aviation kerosene (SAF), diesel, maritime fuel (MGO), and gasoline. This refinery will anchor the ZPE, which was only established earlier this year. The project represents an investment of R$ 8 billion and is projected to generate 2,300 jobs during its construction and operational phases. This initiative underscores Brazil’s efforts in transitioning to more sustainable fuel sources, contributing to both regional development and global environmental goals.
Cassava-Based Exports from ZPE de Parnaíba (PI)
Another project approved by the CZPE is the establishment of a facility for producing cassava-based products like starches and other derivatives in ZPE de Parnaíba, Piauí. The factory will work closely with local agricultural producers, tapping into the cassava-rich regions of Piauí and Maranhão. With an investment of R$ 40 million, the project is expected to generate around 40 direct jobs and 500 indirect jobs. By leveraging local agricultural resources, this project not only strengthens the local economy but also enhances the value-added export capabilities of the region.
Expanding Export Services in Brazil’s ZPEs
In addition to these industrial projects, the CZPE has also introduced a new list of services eligible for ZPE export regimes. The list includes 76 service activities, based on the Nomenclatura Brasileira de Serviços (NBS), which are highly exportable and aligned with the digital transformation goals of the Nova Indústria Brasil (Mission 4). These services focus on technological innovation, high-value-added activities, and skilled labor, aiming to further integrate Brazil into the global digital economy.
Conclusion
The recent CZPE approvals mark a significant advancement in Brazil’s industrial and environmental landscape. With projects ranging from teak wood manufacturing to renewable energy and high-tech services, these initiatives reflect Brazil’s commitment to fostering regional development, boosting export competitiveness, and contributing to global sustainability efforts. As the ZPEs continue to evolve, they will undoubtedly play a critical role in shaping Brazil’s industrial future, positioning the country as a leader in both economic growth and ecological preservation.