With a solid policy for attracting industrial investments, promoted by the state government, the growing diversity of the local industry is significantly taking shape. Fiscal incentive acts have contributed towards this scenario since 1991. Special highlight goes to DESENVOLVE, a program that offers financial support to industries and agroindustries in Bahia, in order to diversify the industrial matrix in the state.

The industrial incentives, notified by the State of Bahia for the period of 2005 – 2009, reached volumes of R$ 19, 3 billion, aggregating 325 projects, subdivided into thirteen development axis and nine groupings of economical activities. Enterprises such as Veracel, Pneus Continental and Petrobras, with the construction of a petroleum platform, are examples of large incomes to be consolidated in this period and which will also expand the generation of formal employment.

These new enterprises will generate for the industry 70,812 working positions. According to Gazeta Mercantil, the economical activity groupings of footwear, textiles, clothing and food are the largest employment generators.

Industrial Investments Foreseen for Bahia
Investment Volume and Number of Companies per Activity - 2003-2007

ACTIVITY VOLUME (R$ 1,000.00) NUMBER OF PROJECTS
Agricultural/Food Goods 1,190,383 62
Mineral Activity and Processing 3,412,090 29
Footwear/Textile/Clothing 972,672 45
Timber Complex 5,113,698 14
Electric/Electronic 542,843 49
Metal-Mechanical 1,049,206 54
Chemical-Petrochemical 3,424,494 49
Petrochemical Transformation 945,385 57
Others 726,065 8
TOTAL 17,376,836 367

Source: SICM/Miscellaneous Newspapers
Elaboration: GEAC/SEI

The structuring and growth of the productive vocations, and the announcement of important investments, indicate an expansive phase for Bahia's economy and create opportunities for its productive bases to be redefined and for the spatial ordering of its activities.

In terms of job-generation, the installation of new industrial plants is also more significant. Their investments imply, in general, in a direct job/invested value ratio that is bigger than that which results from the enhancements made in the existing factories. The installation of new companies, on the other hand, makes the State's production base denser and stimulates internal product flows and income based on the strengthening of inter-company demands and on possible partnerships made between companies.

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