Brazil’s Big Industries Invest 8% of Revenues in Fixed Assets

Brazilian industries have expanded their investment in productive capacity in 2006, according to a study by Serasa, a company from Brazil specialized in analysis and information about credit and business support.

Serasa researched 10,000 open and closed capital companies from 2003 to September 2006.

In large industries, those with net revenues of over US$ 23.7 million, the volume of investment in fixed assets has presented constant growth since 2003 and was equivalent to 7.6% of revenues up to September 2006, the greatest percentage reached in the period studied.

Approximately 1,700 large companies studied invested at least US$ 15 billion in fixed assets up to September, not considering the investment made by oil giant Petrobras, which alone invested around US$ 5.2 billion in the same period.

The pulp and paper sector stood out in the study. The ironworks sector turned approximately 12.7% of sales revenues to investment. The petrochemical sector disclosed investment of approximately 8.2% of net revenues.

The textile sector posted investment equivalent to 1.9% of revenues. Small and medium companies with annual revenues of up to US$ 24 million, invested approximately 4.1% of revenues.

Abroad

Brazilian investments abroad has also increased by 44% between 2001 and September 2005, according to information released earlier by the Central Bank of Brazil. They went from US$ 50 billion to US$ 71.6 billion.

Brazil is the fourth country amongst the developing nations with greatest direct investments abroad. The information is from the United Nations Conference on Trade and Development (Unctad).

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