Brazil Is Expected to Attract 40 Industries and Create 2,400 New Jobs in Textile Sector

The textile sector of state of Mato Grosso do Sul in Brazil is expected to attract 40 new industries as well as create 2,400 new jobs as various sectors in the state signed an agreement for the extension of tax incentives until December 31, 2028.
 
The agreement for the extension of tax incentives was signed between the Governor of Mato Grosso do Sul, Andre Puccinelli and Sergio Longen, president of the Federation of Industries of Mato Grosso do Sul (FIEMS).
 
According to a statement issued by FIEMS, Sergio Longen, president of FIEMS said the Act permits the resumption of investment by the industries, including textile industries, thereby ensuring competitiveness in the sectors.
 
Governor Puccinelli said the law is one of the most modern in Brazil, spanning over 15 years, and it took 3 years to make necessary adjustments to include all the segments of industries.
 
The business owners in the state would have the security to resume investments and expand projects that can further contribute to advance the state’s industrialization process, he added.
 
According to the statement, José Francisco Veloso, president of the Sindivest and Intermunicipal Union of Industries Clothing, Weaving and Spinning of Mato Grosso do Sul, said the goal is to increase the number of jobs in the sector by 20 percent in the next two years.
 
Currently, there are 12,000 direct jobs generated by the sector, he added.
 
Mr. Veloso said the incentives are important as they will allow the industry to become more competitive in relation to the cost of production.
 
He further said that the garment sector has worked to meet demand while reducing costs by deploying technology and invested in staff training to support FIEMS.
 
The agreement puts a condition that the 15-year benefit in tax incentive would be given after taking technical opinion from FIEMS.
 
The industries that meet the expansion plans and investments according to the law would continue to avail benefits from the Act.