1. May
2010
0
Shipbuilding Industry
Investment Opportunities in Uruguay

2. WHY INVEST IN THE URUGUAYAN SHIPBUILDING INDUSTRY?
In 2006, a promising phase began in the Uruguayan shipbuilding industry sector favored by
intense commercial activity in the port of Montevideo. As a result, the shipbuilding industry
has been operating with a high degree of installed capacity utilization. Invoicing has
exceeded USD 20 million per year with new domestic and international investments being
made. Given the forecasts for strong demand, new investments are continually appearing.
The industry’s current demand results from high levels of activity and profitability of other
sectors, including: transportation, fisheries, petroleum, defense and security services,
research, tourism and others.
Uruguay has numerous advantages that are leading to expanded development of its
shipbuilding industry:
The port of Montevideo is located at a strategic position along the Atlantic
coast of South America.
Proximity to large fishing areas.
Proximity to a maritime corridor with high traffic of Panamax and Post-
Panamax ships.
Good international reputation for services.
Potential market for construction of barges and tugboats.
Creation of a local cluster with significant government support and
commitment.
Favorable legal framework for shipyards.
Highly qualified and specialized human resources.
Industry description
The shipbuilding industry includes various activities, such as: construction, transformation,
repair, maintenance and dismantlement, as well as manufacturing of machinery and
accessories. This industry requires high levels of capital and is intensive in terms of highly
skilled labor.
The shipbuilding industry has two classifications: heavy and light. The former includes fleets
for river and ocean transportation, while the latter entails mainly sport, tourism and coastal
fishing vessels.
Uruguay Shipbuilding Industry Cluster Association
In 2007, the Uruguayan Shipbuilding Industry Cluster Association began to take shape when
the government and the private sector assumed the responsibility of transforming the
2

3. industry through a clustering of the sector. The aim was to increase competitiveness and to
become an active tool and meeting point for all players that participate in ship construction
and repair activities.
With economic support and methodology of the European Union, the Shipbuilding Cluster
consolidated between 2007 and 2009, through the drive and coordination of the Ministry of
Industry, Energy and Mining.
The cluster has active participation from over 50 players including shipbuilders, shipyards
and dockyards, from private and government sectors, maritime shops, suppliers, education
institutions, private and government organizations and the sector employees’ union.
Currently, the Shipbuilding Industry Cluster Association’s new strategic plan has the
following guidelines: (i) education and training, (ii) technology and innovation, (iii) market
and (iv) shipbuilding industrial pole.
South Atlantic Shipbuilding Industrial Pole
In February 2010, the Uruguayan government and the Uruguay Shipbuilding Industry Cluster
Association signed a gratuitous loan agreement to access an 87-hectare government-owned
property for the development of a shipbuilding industrial pole near the port of Montevideo.
The aim is for Cluster members to carry out productive shipbuilding projects, either
individually or through joint ventures with domestic or foreign investors.
This pole will be able to be used by Cluster Association members or by other companies
working through joint ventures with Association members. Investments will be made with
private capital and will be used exclusively by the investors themselves. Users of the pole
shall make payments to the Cluster Association for maintenance, technology and training.
This area will be suitable for the construction of the following:
1. Repair docks whose sole function is ship repair, excluding any type of commercial
port activities.
2. Dry and floating docks, synchrolifts, drydocking and vessel launching ramps, travelift
and any other means for drydocking vessels.
3. Shipyards can be set up for vessel construction or vessel parts in various materials.
4. The following shops can be set up: repair, boiler, mechanic, electricity, electronics,
carpentry, hydraulics, refrigeration, etc.
5. Ship construction support shops can be set up for treating surfaces, tubing, boilers,
etc.
The site will have a technology center and a training center. Those interested in
participating in the pole must present their project for evaluation to the Cluster Association
administrative commission. The shipbuilding pole will be responsible for all national,
municipal and environmental permits.
3

4. Location of the South Atlantic Shipbuilding Industrial Pole
The Uruguayan market and the region
Uruguay
The country is in a central geographic location for maritime and terrestrial networks in the
southern region of South America. Sustained port activity growth in the capital city of
Montevideo and a firm push towards multimodality to enable Uruguay to become a regional
logistics pole offer a promising future that can lead to increased ship traffic in the country’s
ports. As such, developing a large ship repair center in the South Atlantic is a possible and
achievable goal that has been set by the recently created Uruguay Shipbuilding Industry
Cluster Association.
Since its onset in the 18th century, the shipbuilding industry in Uruguay has had peaks of
activity in terms of both construction and repair, but has also seen lows, mainly in
construction. However, in terms of repairs, activity has been sustained throughout time,
with various levels of intensity.
Currently, Uruguay is seeing an increase in demand for ship repair, mainly due to the
sustained growth in port activity and significant demand by the fishing fleet.
In terms of ship construction, there have been recent local investments that required the
construction of barges, which in addition to possible additional increases in demand have led
to an upsurge in activity, not just in terms of production, but also in investment,
infrastructure and technology.
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5. Physical Volume Index
Ship production has been on the rise over the past few years. In 2009, the sector's Physical
Volume Index was 43% above the base year (2006). The year 2007 saw a peak in activity
with a 62% increase as compared the base year.
Uruguayan shipbuilding industry physical volume index
(vessel construction and repair)
180
162
160 145 143
140
120 110
95 100
100 87 81
80
60
40
20
0
2002 2003 2004 2005 2006 2007 2008 2009
Source: Uruguay XXI's calculations based on data from the National Statistics Institute (INE).
Employed Personnel Index
The employment indicator shows that in the last three quarters of 2009, the sector had
improved as levels are clearly higher than in previous years. The highest value was seen in
the last quarter of 2009, reaching 204 (base year 2006).
Uruguayan shipbuilding industry employment index
250
197 204
190 187
200
166
154
141 138 139 135
150 123 131 131
96 98
100 83
50
0
Source: Uruguay XXI’s calculations based on data from the National Statistics Institute (INE).
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6. On average, the Employed Personnel Index for 2009 was 81% higher in comparison to the
base year.
In terms of the number of workers, according to figures studied by members of the
shipbuilding industry cluster, the largest private company (Tsakos Industrias Navales)
employs between 300 and 400 operators, including permanent staff, seasonal staff and
contractors. The navy’s repair and construction service employs 150 operators and the
remaining specialized shops have an average of 10 operators.
Number of vessels entering the port of Montevideo
In 2009, 4,881 vessels entered into the port of Montevideo, 7% less than in 2008. This is an
unavoidable consequence of the drop in world trade during 2009, which was of about 12.2%
in terms of volume according to the World Trade Organization.
Number of vessels entering the port of Montevideo
2,500
2,000
1,500
1,000
500
0
River passenger Fishing Coastal and ocean
2006 747 2,134 2,264
2007 729 2,082 2,213
2008 676 2,352 2,204
2009 840 2,068 1,973
Source: Uruguay XXI’s calculations based on data from the National Statistics Institute (INE).
data.
Until 2008, international trade had risen faster than the global economy, leading to a boom
in the ship construction industry and the appearance of shipyards in Asian countries that
have absorbed 90% of worldwide vessel production. Asian countries have positioned
themselves as the main exporters in the industry.
In terms of competition or regional shipbuilding industry complementation, we must
consider the region’s countries (Argentina and Brazil) and the Paraguay – Paraná – La Plata
River Hydroway.
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7. Paraguay – Paraná – La Plata River Hydroway
The Paraguay – Paraná – La Plata
River Hydroway is a transportation
system serving mostly agricultural
products (soy and others),
minerals, (iron and manganese)
and fuel. Large loads may be
transported along the Hydroway.
It is the main river communication
and transportation artery for the
countries who share it: Argentina,
Bolivia, Brazil, Paraguay and
Uruguay. The region is considered
to be one of the richest in Latin
America. Its main rivers include
the Paraná, Paraguay and Uruguay
rivers.
This system is about 3,440 km long
from the Cáceres port in the
extreme north (Brazil) and the
Nueva Palmira port in the extreme
south (Uruguay). The Hydroway
project ensures daytime and
nighttime navigation throughout
the year with convoys formed by
various cargo barges.
It is the natural exit point for the
production of large areas of
excellent productivity and has extensive possibilities for industrial development. These
characteristics are a benefit for existing regional and emerging markets since they allow for
the economic development of the countries involved.
Argentina
The Argentine industry is composed of a few, yet large shipyards as well as a large number of
small and medium sized productive units. 80% of vessel construction and repair shipyards
are located in the province of Buenos Aires.
The Buenos Aires Association of the Argentine Shipbuilding Industry and the Chamber of
Shipbuilding Industries in Uruguay have an agreement entitled “Frame Agreement for
Cooperation, Exchange and Aid” where the main objective is defined as “to join forces and
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8. strategies to carry out actions favoring each country in particular and Mercosur in general,
and the mutual defense and benefit of labor, production, commerce and society.”
Number of vessels entering the port of Buenos Aires
In 2009, ship traffic in the port of Buenos Aires totaled 1,873 ships, 16% less than in 2008
(2,228). Of the ships that entered in 2009, 973 were coastal ships and the remainder were
overseas ships.
Number of vessels entering into the port of Buenos Aires
2300
2200
900 overseas ships
2100
2000 2,228
1900 973 coastal ships
1800
1700 1,873
1600
2008 2009
Source: Uruguay XXI's calcculations based on statistics from the port of Buenos Aires.
Brazil
The Brazilian shipbuilding industry has over one hundred shipyards that have the capacity to
build ships ranging from small fishing vessels to large sophisticated ships. 70% of these
shipyards are located in Rio de Janeiro. Likewise, other shipyards are located in shipbuilding
development poles along the country’s littoral region. The Brazilian industry’s main clients
are national builders and state-owned petroleum companies that are mainly financed by the
Merchant Marine Fund (FMM).
The shipbuilding industry, which had poor performance at the end of the 1990s, started to
recover in 2000 with the off-shore platform fishing sector, maritime support vessels, their
equipment and components, and later, the refurbishment of Petrobras fleets and local
purchasing plans. This led to construction contracts for 10 petroleum ships at a cost of USD
1,160 million for the renovation of the Petrobras fleet. Additionally, 42 new ships will be
acquired in the next few years. Nevertheless, the Brazilian shipbuilding sector has the need
to attract skilled labor, to overcome outdated technology and to expand production
capacity.
The Rio Grande port is the southernmost ocean port in Brazil, and the second largest in
terms of cargo movements in the country. Ship traffic in the Rio Grande port during the
January-March 2010 period was 447 ships. In 2009, ship traffic totaled 2,983 ships, 7% less
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9. than 2008, which had 3,214 ships. In the indicated period, ships with the greatest share
were long haul ships.
Number of vessels entering the port of Rio Grande
3500 Coastal
3000 362 Interior navigation
483
2500 Long haul
1,426
2000 1,146
1500 Coastal = 96
Interior navigation = 157
1000 Long haul = 194
1,426 1,354
500
0
2008 2009 Jan - Feb 2010
Source: Uruguay XXI’s calculations based on statistics from the port of Rio Grande.
Prospects for sector investment
Saturated demand in Brazilian shipyards means that the surplus could be partially
attained by the Uruguayan shipbuilding industry and could even promote its
expansion in terms of investments. The Brazilian shipbuilding industry seeks to
supply itself mainly from ship parts.
Negotiations are underway with Brazil so that products that are manufactured in
Uruguay with Brazilian supplies are considered to be Brazilian for the 70%
consumption guidelines.
Over 1,600 barges use the Paraguay – Paraná Hydroway transporting products from
South America. 1,000 of these barges must be replaced soon and 2,000 must be
added. 3,000 barges are needed for the Hydroway over the next few years.1
1
Source: http://www.symbarge08.org/paginas/info_gral.php. Symbarge 08 is an event promoted by the Pan-American Institute of Naval
and Port Engineering (IPIN) to ensure that the regional shipbuilding industry is able to face the great challenges posed by river logistics
along the Hydroway.
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10. Large investments and companies in the Uruguayan shipbuilding sector
The sector’s most notable fixed capital investments include a slipway, two drydocks owned
by SCRA (the Construction, Repair and Armament Service of the Navy), a floating dock
owned by Tsakos and one owned by the National Port Administration (ANP).
In 2008, construction ended for the last two tugboat barges by two member organizations of
the Shipbuilding Chamber of a total of four that were built by Uruguay to transport cellulose
pulp on the Uruguay River.
In the Appendix there is a list of some of the companies and workshops related to the
industry.
Legal and tax framework
In terms of promotion and tax frameworks, there is a consensus that although some aspects
could be improved, legislation for shipyards, slipways and docks is very good. The 1984 law
states: “all taxes, including Value Added Tax, shall be excluded for the import of materials,
raw materials, capital goods and in general everything necessary for the development of the
national shipbuilding industry activity." It includes reimbursements for repair exports.
Practically everything that is imported is exempt from taxes and there are no royalties.
These exemptions for the sector offer advantages as compared to Brazil and Argentina.
Furthermore, the Uruguayan customs system is more agile and flexible than that of Brazil
and Argentina, which facilitates the entrance of supplies from the rest of the world.
Likewise, there are laws granting Corporate Income Tax (IRAE) exemptions when
investments are made through consortiums and where there are over 150 employees.
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11. APPENDIX
Domestic and foreign investment promotion
Foreign investors in Uruguay enjoy the same benefits as domestic investors and do not need
prior authorization to set up in the country.
Law 16,906 (dated 7 January 1998) declares the promotion and protection of domestic and
foreign investment of national interest. Decree 455/007 updated the regulations of this law.
Investment projects in any industry that are submitted and promoted by the Executive
Branch may use between 51% and 100% the amount invested as partial payment of the
corporate income tax (IRAE), according to project classification. The normal IRAE tax rate is
25%.
In addition, moveable fixed assets and civil works are exempt from wealth tax (IP) and value
added tax (IVA) can be recovered for purchases of materials and services for the latter.
Likewise, the law exempts import taxes and charges for movable fixed assets declared non-
competitive to domestic industry.
Specific government incentives for the shipbuilding sector
Government participation in the development of the shipbuilding industry has been
significant. For this reason, the development of port infrastructure has been one of the top
priorities for the last few government administrations. The strategic development plan2 of
the National Port Administration (ANP) emphasizes not only the port of Montevideo, but
also the ports of Colonia and Sauce de Juan Lacaze3.
Highlights of ANP’s strategy for industry fortification include the following:
Boosting the development of a national port system with a vision of the future and a
re-launch of the activity in Uruguay.
Shipbuilding Industry Cluster initiative.
International promotion and search for strategic agreements for national port
development.
Improvements in management efficiency and expansion of infrastructure of the port
of Montevideo.
Position Uruguay as a port and logistics pole for the region that connects Chile,
Bolivia and Paraguay with the Atlantic Ocean.
2
Executive Branch decree 508/2008.
3
ANP Resolution 112/2009 states that the ports of Colonia and Sauce de Juan Lacaze shall be complementary ports as of 9 September
2009.
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12. Initiative to develop a fishing terminal in Montevideo Bay to improve port activity and
to enable improved operations of the shipbuilding industry at the port.
The Ministry of Defense also supports the development
of the sector. In partnership with the private sector, the
navy has made significant investments in infrastructure
and personnel training for the construction of barges in
light of the current outlook and in anticipation of the
possible demands of the Hydroway.
Trade agreements and investment protection
General trade agreements
Uruguay has been part of the World Trade Organization (WTO) since its
creation in 1995 and is part of the Latin American Integration Association
(ALADI, 1980) along with ten South American countries plus Cuba and
Mexico.
In the framework of ALADI, the Southern Common Market (Mercosur)
was formed in 1991 with Argentina, Brazil and Paraguay. Mercosur
became a customs union in 1995, with the free movement of goods,
the elimination of customs duties and non-tariff barriers between
countries, and a common external tariff for countries outside the bloc.
Venezuela is currently in the process of joining Mercosur.
Within the framework of ALADI, Mercosur has signed free trade agreements
with other countries in South America: Chile (1996), Bolivia (1996), Colombia,
Ecuador and Venezuela (2004) and Peru (2005), and has an agreement with
Israel (2007), all of which form respective Free Trade Zones, with tariff
reduction schedules that should be completed no later than 2014/2018,
according to the country.
Uruguay also signed a bilateral free trade agreement with Mexico (2003), which allows for
the free movement of goods and services between both countries.
Investment protection
Uruguay has signed investment security, protection and promotion agreements with 27
countries, including Finland, France, Spain, the U.K. and the U.S.
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13. Specific trade agreements for the shipbuilding sector
The Uruguayan government was able to help lift Brazil’s double taxation on repairs made
outside Brazilian borders, thus allowing for future repairs of the Petrobras fleet. These
services could not be provided before on account of price competition.
The Montevideo Service Protocol, in effect since 2005, includes the complete liberalization
of services among Mercosur countries within a ten-year period. Likewise, Brazil has already
liberalized repair services of its ships abroad for members, although these may not be paid
with resources from the Merchant Marine Fund.
In effect since 1975, the Maritime Cargo Transport agreement with Brazil grants exclusivity
for transportation among its ports for companies from both nations. Since 1994, there has
been a similar arrangement with Argentina with the Maritime Passenger Transport
agreement.
General government export incentives
Refund of VAT paid for supply purchases
Refunds of VAT on purchases are made generally by discounting VAT charged on sales and
paying the difference to the State. Since this tax is not charged on exports, VAT included in
purchases of inputs is refunded at the request of the company. The DGI tax bureau extends
credit certificates that can be used in paying other taxes.
Refund of other taxes
The State refunds other internal taxes that make up the cost of a product exported through
a notional percentage on FOB value determined by the Executive Branch (currently 2%).
Temporary admission
Imported supplies, components, packaging and molds that will be incorporated in the
production of exported goods are exempt from both customs duties and Value Added Tax.
The only requirement is for exports to occur within a period no greater than 18 months.
If the final product has imported supplies of 50% or less of the total value, it remains of
Mercosur origin, which is required for intra-zone tariff exemptions. This system is set to
expire in 2010 for Mercosur, but is expected to be renewed.
Export financing
The Central Bank of Uruguay (BCU) has an export pre-finance system. If pre- or post-export
bank financing is obtained, 30% (or 10% in some cases) can be deposited in the BCU, which
will pay interest on the total financing amount rather than only on the deposit.
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14. Special customs systems
Free Zones
There are the 10 Free Zones or customs enclaves for
manufacturing activities or services to third countries where
customs duties and taxes are not paid on entry and exit of goods
and services. In addition, broad exemptions from national taxes are
granted, such as the IRAE income tax, but not for social security
payments for domestic personnel.
A minimum of 75% of Uruguayan citizens on total staff is the only requirement, although this
percentage may be reduced with prior approval by the Executive Branch.
Free Port and customs warehouses
Montevideo and other ports in the country operate under a
system enabling the free movement of goods, which are exempt
from applicable import taxes and surcharges for activities
including handling, fractioning, repackaging, etc. (that do not
imply manufacturing).
Private or bonded warehouse systems
This system grants companies the possibility of having enclosed areas where the
merchandise is stored (in transit) with authorization from Customs. In-transit merchandise
can be unloaded or reloaded at any given moment, free of import and export taxes and any
internal taxes.
There are three types of private warehouses:
(i) Commercial warehouse: merchandise can only be the objective of operations to ensure
conservation, impede deterioration and facilitate dispatch, such as revising, weighing,
removing samples, repairing, substitution and re-labeling bulk items and all other analogous
operations that do not increase the value nor modifies its nature; likewise remittances can
be fractions but bulk items many not be fractioned.
(ii) Bonded warehouse: merchandise can be also the objective of operations destined to
facilitate commercialization, such as fractioning, conglomerating and conditioning bulk
items, mixing, selecting, classifying, dividing and establishing assorted lots or larger volumes
and all other analogous operations that increase the value of the merchandise without
changing its nature.
(iii) Industrial warehouse: merchandise can be the objective of operations destined to
change its nature, including the addition of local parts, articles and products such as
industrialization of raw materials, semi-manufactured products, adjustments, assembly,
mounting, vehicle finishing, machinery and all other analogous transformation operations.
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15. When merchandise from abroad stored in private or bonded warehouses authorized for
such purposes enters the local market, it shall pay the corresponding taxes as if they came
directly from outside the national customs territory.
When local merchandise enters bonded warehouses, it shall do so in accordance with
applicable export laws.
Institutions
Shipbuilding Industry Chamber: The Shipbuilding Industry Chamber is the association
representing the Uruguayan shipbuilding sector and is part of the Chamber of Industries of
Uruguay. http://www.camaranaval.com
Uruguay Shipbuilding Industry Cluster Association: http://www.industrianaval.com.uy
Shipbuilding Companies
ANP: The National Port Administration is the Uruguayan decentralized service responsible
for port management.
ALIANZA ASTILLERO: Shop focused on ship repair and construction with more than 300 tons
of new ship block construction including bow and stern blocks, sides, wave breaking
bulkheads and more. Welding procedures and qualified welders at client’s request.
ASTILLERO GADATUR: Shipyard focused on vessel construction and repair specializing in
work boats. The company is currently in the process of building a vessel for the Maritime
Pilots Society of the Port of Montevideo with an innovative construction for this type of
vessel.
ASTILLERO NEREUS: Shipbuilder focusing on recreational fiber glass vessel construction.
Representative for Zodiac boats and Suzuki outboard motors. The company has large
facilities for the repair of fiberglass vessels.
ASTILLERO VICTORIANO: Shipbuilder focusing on innovative, high added value recreational
fiberglass vessel construction. Currently, the company is in the process of working with
Brazilian shipbuilders for the development and production of vessels for this market niche
internationally.
LEONER: Works in mechanics and boilers and is focused especially on floating repairs.
METALDIS: Currently works on equipment and facilities for the manufacture and repair of
parts, pipes, stainless steel, mechanized parts, alignment and balance of axels for propeller
shafts in small vessels.
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16. MOVILUNO: Company focusing on electrical, electromechanical and hydraulic repairs and
currently represents Damen Shipyards of Holland. Specializes in logistics management for
large projects.
NITROMAR S.A.: A maritime shop mainly dedicated to the repair, modification and
refurbishment of vessels. Staff members with more than 25 years of experience in
shipbuilding. Work is generally performed floating on the port of Montevideo, with the
support of its facility’s shop.
RIN S.A. MARINE ENGINEERING: Founded in 1974, the company has experience in ship and
container repairs and has been working in drydocks for 31 years. The company repairs 80%
of the fleet of ships in the port of Montevideo.
STARSIKOL: Maritime shop specializing in ship motor mechanics. Company has investments
in specialized lathe and gasket making machinery. Represents ZF for ship transmission and
propulsion systems and focuses on the repair and sale of motors and propulsion systems.
CONSTRUCTION, REPAIR AND ARMAMENT SERVICE OF THE NAVY (SCRA): This company is
dedicated to repair and construction of all types of ships entering the La Plata River.
TALLERES EL TIMÓN: Shop with excellent staff in mechanics and adjustments. Floating and
drydock ship repair. Has advanced slipway project on littoral where it currently performs
repairs.
TIFEREY: Recently created joint venture by partners with long history in maritime activities
as builders, operators and specialized shop owners. Currently developing a project to set up
in the Shipbuilding Pole.
TSAKOS INDUSTRIAS NAVALES S.A.: The Tsakos group participates in maritime activities
through a fleet of over 70 ships, with an approximate transportation capacity of 8 million
tons and an international presence with offices located on five continents. The Tsakos
shipyard in Uruguay is located in the heart of the natural port in the city of Montevideo. The
Tsakos group has offices in 11 countries with Montevideo being its only office in South
America.
VARADERO DINVERT: Constructed by the Kambara firm of Japan. The company is focused
on ship repair and construction. Its 24 hectare surface area has an 80-meter long, 30-meter
wide and 4-meter deep ramp. Works with fishing boats, tugboats and barges.
16

17. Specialized maritime suppliers
AEROMARINE: Company focused on the supply, development and maintenance of advanced
electronic systems, marine electronics, radio communications, satellite communications and
broadcasting. Company represents many parts and equipment suppliers in the sector.
ENDUMAR: Company focused on manufacture and assembly of pipework, sandblasting,
shotblasting and painting of piping. Also performs industrial electromechanical assemblies,
pantograph metal cutting and manufacture of ship parts. Currently transforming its systems
to clean technologies.
GEOTEC: Company focused on meeting demands for goods and services in areas including oil
hydraulics and hydraulic mechanical elements, electronics and IT.
IMPROMET: Engineering service company focused on industrial solutions in metallurgy,
construction, equipment assembly and complete industrial plants. Has 1,300 square meters
of space for manufacturing.
MARINE SURVEYOR GROUP: A group of companies and associates dedicated to consulting
related to construction and operation of ships and their cargo, as well as land and air transport,
accident investigation, ship and facilities protection and other activities.
MERCOSURVEY: Company dedicated to consulting related to construction of ships, repair, ship
operation, cargo, accident investigation, ship and facilities protection and other activities.
Performs implementation of quality systems including OHSAS 18000.
RENNER: Industry and Maritime Division has made high performance anti-corrosion paints
for over eight decades.
SANDONATO: Metallurgy company focusing on the shipbuilding market.
SCINCE TECHNOLOGIES: Company focused on satisfying market demand in the area of Non
Destructive Testing (NDT) in all techniques. Has top level NDT with ASNT certification,
complemented with approved equipment for each application.
TURBOPOWER: Shop specializing in repair of all types of marine motor turbos. Has latest
equipment in the area of dynamic balancing of rotors.
17

18. Uruguay at a Glance (2009)4
Official name República Oriental del Uruguay (Oriental Republic of Uruguay)
Location South America, bordering Argentina and Brazil
Capital Montevideo
2
176,215 km . 95% of the territory has soil suitable for agriculture and
Surface area
livestock activities.
Population 3.3 million
Population growth 0.3% (annual)
Per capita GDP USD 9,458
Per capita GDP (PPP) USD 13,019
Currency Uruguayan peso ($)
Literacy 98%
Life expectancy at birth 76 years
Form of government Democratic republic with presidential system
Political divisions 19 departments
Time zone GMT - 03:00
Official language Spanish
Main Economic Indicators 2004-2009 4
2005 2006 2007 2008 2009
Annual GDP growth rate 7.5% 4.3% 7.5% 8.5% 2.9%
GDP (PPP) USD millions 32,048 34,602 38,235 42,543 43,551
GDP, USD millions (current) 17,367 20,035 24,262 32,207 31,606
5
Exports (USD millions), goods and services 5,085 5,787 6,936 9,291 8,551
Imports (USD millions), goods and services 4,693 5,877 6,775 10,217 7,775
Trade surplus / Deficit (USD millions) 393 -90 166 -926 796
Trade surplus / Deficit (% of GDP) 2.3% -0.5% 0.7% -2.8% 2.5%
Current Account Surplus / Deficit (USD millions) 42 -392 -212 -1,502 258
Current Account Surplus / Deficit (% of GDP) 0.2% -2.0% -0.9% -4.7% -0.8%
Overall fiscal balance (% of GDP) -0.4% -0.5% 0.0% -1.4% -2.2%
Gross capital formation (% of GDP at current prices) 16.5% 18.6% 18.6% 20.2% 19.1%
Gross national savings (% of GDP) 17.6% 16.9% 19.0% 17.9% 17.1%
Foreign direct investment (USD millions) 847 1,493 1,329 1,840 1,139
Foreign direct investment (% of GDP) 4.8% 7.5% 5.4% 5.7% 3.6%
Exchange rate peso / USD 24.5 24.1 23.5 20.9 22.5
Reserve assets (USD millions) 3,071 3,097 4,121 6,329 8,373
Unemployment rate (% of EAP) 12.2% 11.4% 9.7% 7.9% 7.7%
4
Source: GDP data was taken from the IMF; data on foreign trade, FDI, exchange rate, international reserves and foreign debt was
provided by the Central Bank of Uruguay (BCU); population growth, literacy, unemployment and inflation data comes from the National
Statistics Institute (INE).
5
2008 and 2009 data includes a partial estimate of production activity in Free Zones and the information regarding the survey coordinated
with CUTI for software related activities.
18

19. Investor Services
About Us
Uruguay XXI is the country’s investment and export promotion agency. Among other functions,
Uruguay XXI provides no cost support to foreign investors, both those who are evaluating where to
make investments as well as those currently operating in Uruguay.
Our Investor Services
Uruguay XXI is the first point of contact for foreign investors. Services we provide include:
Macroeconomic and industry information. Uruguay XXI regularly prepares reports on
Uruguay and the various sectors of the economy.
Tailored information. We prepare customized information to answer specific
questions, such as macroeconomic data, labor market information, tax and legal
aspects, incentive programs for investments, location and costs.
Contact with key players. We provide contacts with government agencies, industry
players, financial institutions, R&D centers and potential partners, among others.
Promotion. We promote investment opportunities at strategic events, business
missions and round tables.
Facilitation of foreign investor visits, including organization of meetings with public
authorities, suppliers, potential partners and business chambers.
Publication of investment opportunities. On our website, we periodically publish
information on investment projects by public entities and private companies.
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