The investment forecast for the foundry industry in Minas Gerais for this year is in the order of R$250 million. The majority of contributions will be directed to equipment, with companies focusing on increasing productivity. Although expanding the workforce is not the main target for resources, around 2,000 to 2,300 new jobs should be created.
The information comes from the president of the Foundry Industry Union in the State of Minas Gerais (Sifumg), Afonso Gonzaga. The executive is confident that the planned investments will be able to bring substantial gains to the sector. His expectation is that the Minas Gerais foundry will be able to grow by 8% to 10% in 2024 if everything goes according to plan.
Without mentioning names, the director reveals that two important projects in the area are underway, both in the Metropolitan Region of Belo Horizonte (RMBH). The first concerns the production expansion of a strong casting manufacturer located in Igarapé, which intends to increase from 700 tons produced per month to 1,400. While the second concerns a new foundry in Juatuba, which plans to initially produce around 500 tons per month.
But Gonzaga’s positive outlook for the mining year in Minas Gerais is not just limited to robust investment estimates. In reality, companies are projecting contributions precisely because they believe in Brazil’s progress. The director considers that the sector has a large pent-up demand and if the actions of the Legal Framework for Basic Sanitation and the Legal Framework for Railways, in fact, boost works, the production of castings will benefit.
Federal government cooperation in favor of industry
Something that can boost the development of foundries in Minas Gerais, as well as throughout the country, is collaboration between the private sector and the federal government. In this case, the president of Sifumg highlights the need for the federal Executive to realize that the progress of industries is essential not only for the sustainability of the area itself, but also for the evolution of other sectors such as services and commerce, in addition to positively impacting public revenues. .
“When we say, for example, that it is necessary to reduce payroll, it is because we have to put money in the hands of the worker, that is, as this happens, we give them the opportunity to buy more. If the worker doesn’t buy, commerce doesn’t sell, industry doesn’t produce and the government doesn’t collect. The basis for growth is industry”, said Gonzaga, reiterating that it would be pertinent to have different treatment for the industrial area.
According to him, businesspeople remain optimistic, but the government cannot take measures to change this scenario. If the market becomes pessimistic, demand will fall, which increases the risk of production stoppages and layoffs. Therefore, the executive evaluates the country’s new industrial policy, demanded by the category for years, and the tax reform, which he believes will not bring benefits to industries, as a sign of good will in the search for improvements to the sector.
In 2023, the foundry sector in Minas Gerais grew 6.2%
The mining industry in Minas Gerais ended 2023 with 17.4 thousand employees, 28% of the national total (60.5 thousand). Regarding production, 669.5 thousand tons of castings were manufactured in Minas Gerais, which includes iron, steel, aluminum and bronze. This volume represents an increase of 6.2% compared to 2022. The increase was lower than the 10% predicted at the beginning of the year, however, it could have been lower if the mineral, railway and agro-industrial segments had not stood out positively.
The president of Sifumg explains that the sector experienced problems with a decline in automotive purchases from mid-April to July. And despite the recovery, the loss of sales to the foreign market due to the import of ready-made parts with different taxation continues. Gonzaga says it is seeking a solution to the situation, such as surcharges on imported goods, with the federal government, which has been open to negotiation.