In 1989, when I arrived in Espírito Santo to work on the expansion project of ArcelorMittal Tubarão, then known as CST, I was shocked professionally. I had come from Pernambuco, where I had worked in an industrial complex, including an equipment factory, a steel and iron foundry and a steel mill for the production of rebar.

Here in the state, despite the presence of large companies such as Suzano (then Aracruz Celulose), Samarco, Vale, ArcelorMittal Tubarão and Petrobras, the supply chain that served these industries was incipient, without any tradition, and the labor force was undervalued. They told me, jokingly, to be careful with MOCA – labor force from Espírito Santo – that has neither qualifications nor commitment.

When I traveled for work to other states and said that I was living in Espírito Santo, I received suspicious looks, as if I were regressing. They put us in an inferior place as if we were the UGLY DUCKLING of the southeast region.

All of this intrigued me. My human (acquired from my parents) and professional (I had worked on several projects in different regions of the country and the world) background did not allow me to accept this situation. I understand that every person, regardless of color, gender, age and background, has a skill, depending on the opportunity they are given.

Within this context, with the support of friends I made here and of class entities in the industrial sector and related areas such as Sindifer, Sinduscon, CDMEC, Sebrae, Bandes and Findes, we began work to identify supply opportunities for large companies and at the same time we evaluated local potential.

Working in a planned and organized manner, with monthly monitoring of the actions carried out through the PDF – Supplier Development Program of Espírito Santo, we began to achieve results. At first, there was distrust, but the business owners believed in the purpose and realized that they needed to prepare themselves to compete and grow sustainably. With support from the government, Sebrae and Senai, the workers participated in training and qualification courses, including aspects of safety and the environment.

Additionally, national and international trips were organized for executives and businesspeople to acquire knowledge and establish partnerships, always with the support of entities and investors. Technical seminars, technical and business meetings and trade fairs were then held.

One of the most successful events is MECSHOW, which will take place on August 2, 3 and 4 in 2022. The event, which is celebrating its 15th anniversary, was initially held to bring suppliers closer to the local market. Today, it is respected nationwide, and is the ideal place for networking, equipment exhibitions and discussions on technology, investments and business, with the participation of companies and executives from several Brazilian states and other countries.

Our companies currently work nationwide on steel, mining, pulp and paper, and oil and gas projects, with recognition from our clients. Our professionals are a reference in several specialties and are respected by our partners. We are welcomed with joy, demonstrating the strength of our companies, our workers, and the state of Espírito Santo.

UGLY DUCKLING, IT'S OVER!!! With humility, training and work we will still do more. Alone we go faster, together we go further.

The history of industrialization in Espírito Santo dates back to the beginning of the 20th century, with the first industries installed in the municipality of Cachoeiro de Itapemirim. From the 1950s onwards, the still embryonic stage of industrialization in Espírito Santo developed due to the role played by the metalworking, steel and metallurgical sectors in large projects carried out in the state. This arrangement has become one of the most important in the economy of Espírito Santo to this day.

Currently, the local production structure comprises six segments. We have the metalworking sector, with companies capable of producing components and equipment to serve large industries; mining, represented in the state by Vale and Samarco; and steelmaking, made up of ArcelorMittal Tubarão and Simec, which position Espírito Santo as the third largest steel producer in Brazil. There are also the service and machinery manufacturing segments that have been increasing their participation in local supply; pulp, with Suzano, which is a benchmark in global competitiveness; and, lastly, oil and gas, with the presence of Petrobras and Shell, responsible for the production of approximately 350 thousand barrels per day, which positions the state as the third largest producer in the country.

CDMEC, together with Findes, Sindifer, Sinduscon, Sindicopes and Sebrae, worked hard to promote the activities of the Supplier Development Program (PDF) created in 1995 with the aim of fostering the development of local companies that make up the arrangement, an effort that resulted in a change in the supply chain of large projects, expanding local supply from 8% to more than 65%.

With over 30 years of history, CDMEC is currently dedicated to actions focused on technology and innovation to develop companies and make them more competitive at a national level. In partnership with Vale and ArcelorMittal, the “Challenges and Demands of Innovation” Workshops were held, with another stage scheduled for this year. In 2019, the project “Acceleration of Technological Innovation in the Metalworking and Oil and Gas Sectors” was approved through the FUNCITEC/MCI fund, an achievement of the working group entitled “Metalworking and Oil and Gas”, which is composed of entities such as FAPES, IFES, SENAI, UFES, UVV and led by CDMEC.

According to the FCP&G – Espírito Santo Oil and Gas Forum, investments in the order of R$50 billion are planned for the state by 2023, of which approximately 58% will be allocated to the oil and gas sector. With an eye on these investments, CDMEC has FCP&G as an ally to work on the development of companies in Espírito Santo, where consultant Vinicius Chagas represents CDMEC as coordinator of the Technological Demands Working Group, GT02.

Espírito Santo shows the strength of its companies. We have evolved a lot but unity will certainly make us even stronger.

The industrialization of Espírito Santo

The history of industrialization in Espírito Santo dates back to the beginning of the 20th century, with the first industries installed in the municipality of Cachoeiro de Itapemirim. Starting from the 1950s, the industrialization in Espírito Santo, which was then still in its early stages, was developed due to large projects carried out in the State in the metalomechanical, steel, and metallurgical sectors. This arrangement came to be one of the most important for the economy of Espírito Santo until today.

Today, the productive arrangement of the metalomechanical sector comprises six segments. Metallurgy, with companies qualified in the production of components and equipment that service major industries; Mining, represented in the State by Vale and Samarco; Steel, made up of ArcelorMittal Tubarão and Simec, which made Espírito Santo the third largest steel producer in Brazil. There are also the Services and Machinery Manufacturers segments, which have been continuously expanding their participation in offering supplies to major industries; Cellulose, represented by Fibria, which is a world reference in competitiveness; and, lastly, Oil and Gas, with Petrobras and Shell responsible for the production of about 400,000 barrels per day, positioning the state as the third largest oil producer in the country. CDMEC, allied to Findes, Sindifer, Sinduscon, Sindicopes and Sebrae, strove to promote the activities of the PDF (Supplier Development Program), created in 1995 with the objective of boost development for the local companies that compose the productive chain, effort that resulted in a change in the supply chain for large projects, with local supply jumping from 8% to over 65%.

With more than 30 years of history, CDMEC dedicates today to actions regarding to technology and innovation, to develop companies and make them more competitive at national level. In partnership with Vale e ArcelorMittal, the “Innovation Challenges and Demands” Workshops were carried out, with one more stage scheduled for this year. In 2019, the project “Acceleration of Metalomechanical and Oil&Gas Technological Innovation” through the FUNCITEC/MCI fund, a realization of the work group entitled “Metalomechanical and Oil&Gas”, which is integrated by entities such as Fapes, IFES, SENAI, UFES, UVV and leaded by CDMEC. There are investments planned for the state around R$ 50 billion until 2023, of which approximately 58% are destined to Oil&Gas sector. Looking forward these investments, CDMEC allied to Fórum Capixaba de Petróleo e Gás in order to work in the development of the capixaba companies, where the Consultant Vinicius Chagas represents CDMEC as coordinator of the Working Group on technological demands, the Working Group GT02.

 Espírito Santo is gradually showing the strengths of its companies. We have come a long way, but we believe that unity will enable us to go even further.

Between 2017 and 2021, Espírito Santo will receive investments of over 60 billion reais for the installation of new projects and maintenance of existing ones, with over 70% being invested in the oil and gas and naval industry sectors.

Petrobras alone will invest around R$32 billion between 2017 and 2020, 45% more than the amount invested between 2012 and 2016. Shell will invest R$5 billion in oil and gas exploration. Other major projects planned are Porto Central in Presidente Kennedy (a partnership with the Port of Rotterdam in the Netherlands) and the Imetame port in Aracruz. Together, these two projects will change the profile of the Espírito Santo port area, enabling us to receive all types of cargo ships.

Large companies – such as ArcelorMittal Tubarão, Vale, Petrobras, Samarco, Fibria and WEG – purchase more than R$1 billion per year for their operations, including goods and services, which are demanded by all sectors of the economy that make up the supply chain. They require suppliers for the manufacture of mechanical equipment and components, industrial maintenance services, engineering and project management, environment, information technology, transportation of people and cargo, printing, industrial laundry, industrial cleaning, security, accounting, legal and business consulting, among others.

Companies from Espírito Santo that have invested in knowledge, management and innovation are managing to get through the difficult times the economy is going through. Currently, more than 50% of the revenues of suppliers of goods and services come from contracts signed in other Brazilian states. However, it is clear that there is still much to be achieved, especially in the domestic market. It is necessary to know in detail what large companies buy or intend to buy and invest in. Local suppliers have already shown that, when given the opportunity, they seek partnerships, train themselves and participate on equal terms with any other national or international company. An effort in this direction was initiated with the Espírito Santo Oil and Gas Forum together with Petrobras and the Espírito Santo Metalworking Development Center, in partnership with ArcelorMittal Tubarão. This work needs to be deepened and extended to other large investing companies.

At the 10th edition of MEC SHOW, a trade fair for the metalworking and oil sectors, which will be held in July, these issues will be discussed with the aim of showcasing local expertise and seeking new data and information from these investors. The presence of companies from other countries such as Canada, Mexico, Argentina and Colombia has already been confirmed, in addition to representation from the main entities in the oil and gas, metallurgy and mechanical sectors, and from educational institutions.

Espírito Santo occupies only 0.5% of the Brazilian territory and has 1.9% of the population. In other words, we need to take advantage of the market of large companies established here to develop new products and seek new markets, in Brazil and abroad. To do this, it is essential to invest in education, encourage entrepreneurship, create a culture of innovation in schools and suppliers, improve company management and practice associations, in the certainty that together we will make Espírito Santo even better, providing development with quality of life for the entire society. The opportunities exist.

One year and five months after the collapse of the Fundão dam in Mariana, Minas Gerais, we now know much more about the damage caused to communities in Minas Gerais and Espírito Santo. However, the social impact caused by the suspension of the company's operations on the economy of Espírito Santo and, consequently, on thousands of families in the south of the state is also evident and is likely to worsen even further if Samarco does not resume operations this year.

The lack of transfer of taxes generated by Samarco's non-operation will begin to be felt harshly in the municipalities of Anchieta, Mariana and Ouro Preto from 2018 onwards. The city government of the city in Espírito Santo, where the company has operated for almost four decades, is already estimating a 60% drop in its revenue from next year.

The impact of the mining company's shutdown in Espírito Santo can be seen in the recent release by the Jones dos Santos Neves Institute (IJSN) regarding the Gross Domestic Product (GDP) for 2016, which recorded a drop of over 12% when compared to 2015. In addition, a recent analysis by the same institute also indicated an 18.8% drop in industrial production in Espírito Santo, driven mainly by a 31% reduction in the extractive industry, a sector that encompasses Samarco's production.

Since the dam collapse, I have closely followed the agony of the economy in the south of the state. Accompanied by businesspeople from Espírito Santo, I have traveled to Minas Gerais countless times for meetings, hearings and debates on the subject, always with the aim of showing the importance of Samarco resuming its operations.

A licensing process is currently underway at the Minas Gerais State Secretariat for the Environment and Sustainable Development (Semad) so that Samarco can dispose of the waste generated in its production process in a pit called Alegria Sul, located in the Germano Complex, in Mariana. This process has already gone through the stages of public hearings that were held in December of last year, in Minas Gerais.

In addition to the licensing of the Alegria Sul pit, the mining company also needs to comply with the stages of a Corrective Operational Licensing (LOC) for the Germano Complex, which had all its licenses suspended in October of last year. The obstacle at this time is the city government of Santa Bárbara, a city with approximately 28,000 inhabitants, where Samarco has been collecting water from a river to feed its production process since 2014. The letter of compliance from the City Government of Santa Bárbara is essential for Samarco to file the Environmental Impact Study (EIA) for the LOC and begin this licensing process. The city governments of the cities of Ouro Preto, Mariana, Matipó and Catas Altas have already granted their respective letters of compliance.

I remain confident that we will see the plants at the Ubu unit operating again. We know that the impacts caused by the collapse were immense, lives were lost and this can never be forgotten. However, I also believe that the mining company should bear the socioeconomic and environmental losses caused to the two states and that it should resume operations, fulfilling all its obligations and stopping a second social tragedy linked to unemployment and the lack of job and income prospects not only directly in its activities but throughout the chain linked to its business.

The accident that occurred on November 5, 2015, at the Fundão dam in Mariana, Minas Gerais, owned by Samarco, was serious, on a scale never seen before in the Brazilian mining sector. Nineteen lives were lost and 40 million cubic meters of mud were carried to the Rio Doce. Of this total mud, 20 million were retained in the Candonga hydroelectric dam, in the municipality of Rio Doce, and the rest was spread along the river, reaching the sea, in Regência, municipality of Linhares, Espírito Santo.

The damage is enormous: loss of lives and homes, impacts on fishing, agriculture, tourism, among others. In total, 39 municipalities were impacted: 34 in Minas Gerais and 5 in Espírito Santo, and several had their water supply affected.

Immediately after the accident, Samarco has made efforts to minimize this impact. On March 2, 2016, it signed a Transaction and Conduct Adjustment Agreement (TTAC) with several different public entities and institutions, involving the Federal Government and authorities from both states, including 42 programs with socioeconomic and socioenvironmental actions, which should be implemented with a view to working on the recovery of the impacted areas in different aspects.

On August 2, 2016, as provided for in the TTAC, the Renova Foundation, a non-governmental organization that must work on the governance and management of the programs, began operations.

Understanding that the accident must be legally repaired, but also realizing that the company needs to resume its operations, a group of businessmen from the south of the state of ES, in partnership with Sindifer, CDMEC, Sinduscon-ES and Sindicopes, with support from the State Government, the NGO ES em Ação, CREA-ES, Messes and entities from Anchieta, Guarapari and Cachoeiro de Itapemirim, has been working to get the pelletizing units in the municipality of Anchieta, Espírito Santo, back up and running.

Within this philosophy, we went to Brasília and Minas Gerais, where we participated in meetings and public hearings, showing the government and society in general what Samarco has done since its foundation until 2015, with several actions that contributed to the growth of the state and its importance for our economy.

In 2016, approximately 40,000 formal jobs were lost in the state, representing a 6% decrease in the workforce, a large part of which was due to the shutdown of Samarco, which represents more than 20,000 direct and indirect jobs. In the municipality of Anchieta, unemployment in the private sector is around 30%, due to the shutdown of activities in companies in the industry, services and commerce.

Samarco's contribution to Espírito Santo's GDP is 6%, having contributed 50% of the negative result that the state had in 2016, which will be strongly felt by municipalities in the southern region in 2018, when the amounts collected are distributed.

Samarco's return depends on the approval of the City of Santa Barbara, Minas Gerais, where the company obtains the water it needs to operate its mine. Everyone's support is important for the company's return, preventing the social losses resulting from unemployment from being greater than the environmental losses that have occurred.

The metalworking sector in Espírito Santo has experienced significant growth over the last 25 years, due to investment opportunities in the state in the mining, steel, pulp and oil and gas sectors. Local supply increased from 8% to 60%, and companies have become a reference in several segments, supplying different customers in several Brazilian states.

This result is the fruit of joint work between the private sector and the state government, highlighting the actions of the PDF and PRODFOR programs, working to improve the business environment, certification and promotion of companies and qualification of workers.

The State Government, with its incentive and benefit programs, highlighting INVEST and COMPETE, encouraged the growth of existing companies and attracted companies from other states that came and settled here, developed and integrated into the sector.

Currently, the sector is made up of around 1,300 companies that employ more than 25 thousand workers with an annual turnover of over eight billion reais, with more than 50% of this value coming from supplies made to other states.

However, despite these achievements, we note that in the general ranking of competitiveness among Brazilian states – an assessment by MBC-Movimento Brasil Competitivo – Espírito Santo is in 6th place, being above average in nine of the ten items assessed, with innovation being the only item that fell below, losing out to states with less industrial, commercial and social expression.

Considering also the increase in productivity at a global level with the advent of the technological revolution applied to industry, the strategy of innovation appears to be the best path. To achieve this, it is important for the entrepreneur to invest in Research and Development (R&D), as Norway and Singapore have done. In these countries, entrepreneurs invest around 10% of their revenue in innovation, treating this item as an investment and not a cost.

To change this business culture, the government must play an important role in encouraging innovation, creating technology parks, providing resources and/or tax incentives to create favorable conditions and boost competitiveness. It is important to integrate companies and academia, enabling the use of researchers and laboratories that can support the work of companies. In the state, it is important to highlight the role of FAPES, the Research Support Foundation, which has been committed to working with the private sector in the search for solutions that meet the needs of the market.

The Capixaba Metalworking Development Center (CDMEC), seeking to reduce these risks, acts as a facilitator to foster a culture of innovation and assist companies on this path. In November 2016, in partnership with Sindifer and ArcelorMittal Tubarão, a workshop was held to launch innovation challenges for companies in the sector from Espírito Santo, regardless of their size, which allowed small and medium-sized companies to compete on equal terms with large companies. The result was surprising, with companies emerging with innovative solutions that are developing proposals supervised by the entity.

In January and February 2017, CDMEC conducted a diagnosis of innovation in the sector, visiting more than 50 companies, with excellent reception. The result showed that 43% invest more than 5% of their revenue in innovation. It identified that one in three companies has more than 20% of its revenue coming from products or services developed in the last three years.

The world is changing very quickly and any company that wants to grow and survive needs to invest in innovation. It is necessary to break paradigms and create solutions for the market, remembering the British scientist Charles Darwin (1809-1882): “It is not the strongest that survives, nor the most intelligent, but the one that best adapts to change.”

A Região Sul capixaba possui um papel importante para o desenvolvimento socioeconômico do Espírito Santo. Em seu território a economia se destaca em seus diversos setores.

Em Anchieta, município litorâneo, está localizada a unidade industrial da Samarco no estado, composta por quatro plantas de pelotização de minério de ferro com capacidade de produção de 30,5 milhões de toneladas por ano, responsável por cerca de 7% da produção mundial, e um porto privado, sendo a maior empresa exportadora do Espírito Santo e a 10ª do Brasil.

Anchieta é a quinta maior economia do Estado, com um PIB da ordem de quatro bilhões de reais, representando em 2012, 3,5% da economia capixaba. Também possui o 2º maior PIB per capita do estado e o 7º do Brasil, equivalente a 207 mil reais por habitante.

A Samarco iniciou suas operações no estado em 1977, sendo responsável pela grande alavancagem socioeconômica da região sul. No período de 2002 a 2012, enquanto o PIB do Espírito Santo cresceu 336%, no município de Anchieta teve um aumento de 997%. O estoque de emprego formal do estado, no mesmo período, aumentou 68% enquanto em Anchieta cresceu 225%. O mesmo crescimento foi observado nos municípios de Guarapari e Piúma, que fazem parte da área de influência direta da empresa.

O PDF – Programa de Desenvolvimento de Fornecedores do Espírito Santo tem cadastrado mais de 1.200 empresas no estado, sendo que 23% mantém relacionamento permanente com a Samarco. Essas empresas empregam mais de seis mil trabalhadores e faturam cerca de 1 bilhão de reais por ano, gerando impostos para os municípios, estado e país.

O acidente ocorrido em 5 de novembro de 2015 na barragem de Fundão, da Samarco, em Mariana, Minas Gerais, foi um dos maiores desastres no setor mineral brasileiro, infelizmente com vítimas fatais e sérios danos ambientais, que precisam ser corrigidos. Nesse sentido tem se observado o esforço da empresa em fazer o máximo para diminuir o sofrimento da população envolvida.

Deve-se destacar que a unidade industrial de Anchieta, a população e os fornecedores da região não foram afetados diretamente pelo rompimento da barragem, estando aptos para manter suas atividades e colaborar para minimizar os efeitos negativos da suspensão das atividades da Samarco. No estado de Minas Gerais a empresa teve sua licença de operação suspensa. No estado do Espírito Santo a Samarco está com todas as atividades relacionadas a produção paralisadas, mantendo ações internas, com poucos funcionários, de proteção às instalações e equipamentos.

A maioria dos fornecedores do Espírito Santo que trabalha para a Samarco está com dificuldade para manter os empregos dos seus funcionários. Alguns já fecharam as portas paralisando suas atividades, outros fizeram demissões. Os setores de construção civil, alimentação, hospedagem e comércio em geral de Anchieta, Guarapari e Piúma estão com ociosidade, sofrendo com a diminuição dos negócios. Empresas de metalmecânica e fornecedores de insumos, cal e calcário, envolvendo os municípios de Cachoeiro de Itapemirim e Castelo, estão na mesma situação.

Mantida a paralisação das operações da Samarco teremos perda de renda e queda acentuada na arrecadação das prefeituras e estado, trazendo como consequência o empobrecimento da população, elevando os fluxos migratórios, criando bolsões de pobreza e desvio de investimentos para outras localidades e estados.

Visando a retomada das atividades da Samarco, respeitando a legislação em vigor, um grupo de empresários do sul do estado vem atuando junto à sociedade, lideranças públicas e privadas, com apoio de diferentes entidades de classe, para encontrar uma solução para que, técnica e ambientalmente, a empresa volte a operar, mantendo os empregos importantes, principalmente no momento de crise que atravessa a economia brasileira.