Veracel generates 30,400 jobs in the country, according to FGV study

The generation of jobs by Veracel Celulose since it established its mill in Bahia, in 2005, is one of the main subjects of a study, entitled Open Doors for Sustainable Development, prepared by the Getúlio Vargas Foundation's FGV Projetos affiliate. The survey concluded that Veracel generates a total of 30,400 jobs in the country, representing a ratio of 10 indirect jobs for each direct job. The company directly employs 741 persons while another 3,500 are outsourced.

The objective of the FGV document was to demonstrate the impact of Veracel Celulose's activities in the chain or production in the far south of Bahia, its region of operations. The study followed GV methodology for evaluating the contribution of large companies to the Brazilian economy.

The report offers details about how Veracel's activities promote the formation or wealth in the economies in the far south of Bahia as well as the overall state, besides showing how the generation of jobs and income in this chain has contributed to the economic and social development of the region. The study also presents the issues that guarantee the sustainability of the company's businesses.

Other conclusions contained in the report are:

• In 2006, Veracel's direct contribution to the Brazilian economy totaled R$ 516 million.
• Between 2003 and 2006, the establishment of the mill and the expansion of the company's forestry operations contributed 60% of the total economic growth of the municipalities in the far south of the state of Bahia.
• In Eunápolis, where the mill is located, the value added by the company through its industrial activities represented 67% of the municipality's total industrial GDP.
• In the seven municipalities in the far south of Bahia, Veracel's activities reached practically 15% of 2006's agricultural-cattle raising GDP.
• Of everything that the company's chain of production adds to the Brazilian economy, 32% returns to society during the production period. In 2006, this totaled R$ 313 million.

The survey was based on analyses of quantitative and qualitative data about Veracel and its suppliers based on official statistics contained in the National, Regional and Municipal Accounts of Brazil and other official statistics from the IBGE and the Ministries of Labor and Employment and Development, Industry and Trade.

Access the complete report here (1,9Mb - PDF).

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