Current situation

The metalworking industry represents 1.5 % of GDP. The sector’s share in the Ecuadorian industry was 11.30%. The following products stand out in the metalworking sector in Ecuador: Metal roofsPipesStructural framesRolled framesRoad greenhousesMetal systemsRod BuildingSewerVials productsSignalingHome appliances The production of the metalworking industry nationwide is divided into eight sub-sectors detailed in the following table:    Sector investment Total investment in the manufacturing sector is USD 624 million. The greenfield investment in Ecuador recorded in 2014: 1 investor, United States with a capex of $ 163 million. The total investment of the 2010 -2014 greenfield recorded USD 776 million.  Production costs The costs of operating in Ecuador are 10% less than the average annual cost of competing countries.

Comparison operating cost per country

Country Total Costs
Ecuador 2,965,026
Brazil 2,974,318
Chile 3,122,347
Venezuela 3,469,781
Costa Rica 3,606,614
Colombia 3,738,553

Incentives for metalworking sector

Metalworking is a prioritized sector, and it has the next incentives: Income Tax exemption during 5 years starting when income is generated:New investments in Prioritized Sectors and Imports Substitutions (both total 18 sectors) Who can apply?- New Companies (incorporated after issuance of COPCI – December 29 of 2010) – New investments developed outside urban areas of Quito and Guayaquil- Investments in Prioritized sectors, or Imports substitutions Other incentivesExemption of Currency Outflow Tax in case of loan payments (principal & interests) given to financial institutions located abroad.
The loan period shall be over 1 year, the interest rate shall be lower than the referential active interest rate given by the Central Bank of Ecuador in the date of the loan registration. Does not apply for loan given by related parties or financial institutions located in tax heavens. Total or partial reduction of tariffs on import of capital goods, classified as goods not produced locally /or whose technical standards are not generated in the country (Resolution 082, COMEX).

Exports of metalworking sector in the world

metalworking_1

Exports in 2013 were $ 3’276.605 million, giving an annual average growth of 2.41 % in the period 2010 to 2013.

Export destination

metalworking_2

Imports of Ecuador in the metalworking industry

metalworking_3

Current situation

The pharmaceutical industry represents 1.2 % of GDP. The country has 221 pharmaceutical companies. (est. 2013)Sales in Ecuador in 2012 was $ 876 million. The following products stand out in the pharmaceutical sector in Ecuador:

  • Antibiotics
  • Anti-inflammatory
  • Analgesics and antipyretics
  • Antihypertensive
  • Antacids
  • Inhibitors
  • Antitussives
  • Mucolytics
  • Expectorants
  • Hepaprotector
  • Vitamins
  • Antiparasitic
  • Anthelmintics

Sector investment Total investment in the manufacturing sector is USD 623 million in 2010 -2014 . The greenfield investment in Ecuador recorded in 2013 : 1 investor, Japan for a total of USD 4.2 million .

Millions USD
2010 2011 2012 2013 2014 2015  Jan -Mar
120 122 136 138 108 42

 

GREENFIELD FDI FLOW IN PHARMACEUTICAL INDUSTRY IN ECUADOR
Millions USD, N° Projects, Jobs
Country Projects Capex Jobs created
Japan 1 4,2 40

Production costs in the pharmaceutical sector

According to the Ecuadorian Association of Pharmaceutical Laboratories ( ALFE ) , the investment made by laboratories in the years 2010 until June 2013 it has quadrupled.

pharmaceutical_1

Production costs

The costs of operating in Ecuador are 40% less than the average annual cost of competing countries.

Comparison operating cost per country

pharmaceutical_2

Incentives for pharmaceutical sector

Pharmaceutical is a prioritized sector, and it has the next incentives: Income Tax exemption during 5 years starting when income is generated:New investments in Prioritized Sectors and Imports Substitutions (both total 18 sectors) Who can apply?- New Companies (incorporated after issuance of COPCI – December 29 of 2010) – New investments developed outside urban areas of Quito and Guayaquil- Investments in Prioritized sectors, or Imports substitutions  Other incentivesExemption of Currency Outflow Tax in case of loan payments (principal & interests) given to financial institutions located abroad.
The loan period shall be over 1 year, the interest rate shall be lower than the referential active interest rate given by the Central Bank of Ecuador in the date of the loan registration. Does not apply for loan given by related parties or financial institutions located in tax heavens. Total or partial reduction of tariffs on import of capital goods, classified as goods not produced locally /or whose technical standards are not generated in the country (Resolution 082, COMEX).

Customs facilities

Single Window for Foreign Trade (VUE) :

  • Simplifies procedures , time and costs
  • Electronic documentation

Ease of tax payments

  • Paying taxes to imports of capital goods (most cost USD 10,000) to 24 months with competitive interest rates

Customs interconnected -ECUAPASS

  • Custom less time in the region
  • Electronic procedures

Ecuadorian Exports of Pharmaceutical industry

pharmaceutical_3

pharmaceutical_4

Ecuadorian Imports in the pharmaceutical industry

pharmaceutical_6pharmaceutical_5

Current situation 

The annual consumption of plastic products per capita in Ecuador 18 – 20 Kg. The country has 500 importers. The industry generates more than 15,000 direct jobs.

The following products stand out in the plastic sector in Ecuador:

  • Preforms
  • PET flakes
  • Movies PP
  • Pipes and fittings
  • Covers
  • PVC compounds
  • Disposable items
  • Tents and printed sheets
  • Tights
  • Banana Skins
  • Caps and plugs
  • Bins, etc.

 Sector investment 

Total investment in the plastics sector grew by 12.38% in 2014.

The greenfield investment in Ecuador recorded in 2013 : 1 investor, Japan for a total of USD 4.2 million .

US investment in 2014 grew 141.76 % compared to 2013 .

Production costs in plastic sector The costs of operating in Ecuador are 21% less than the average annual cost of competing countries.

Comparison operating cost per country

plastics_1

Incentives for plastic sector

Plastics is a prioritized sector, and it has the next incentives: Income Tax exemption during 5 years starting when income is generated:New investments in Prioritized Sectors and Imports Substitutions (both total 18 sectors) Who can apply?- New Companies (incorporated after issuance of COPCI – December 29 of 2010) – New investments developed outside urban areas of Quito and Guayaquil- Investments in Prioritized sectors, or Imports substitutions Other incentivesExemption of Currency Outflow Tax in case of loan payments (principal & interests) given to financial institutions located abroad. The loan period shall be over 1 year, the interest rate shall be lower than the referential active interest rate given by the Central Bank of Ecuador in the date of the loan registration. Does not apply for loan given by related parties or financial institutions located in tax heavens. Total or partial reduction of tariffs on import of capital goods, classified as goods not produced locally /or whose technical standards are not generated in the country (Resolution 082, COMEX).

Customs facilities

Single Window for Foreign Trade (VUE) :

  • Simplifies procedures , time and costs
  • Electronic documentation

Ease of tax payments

  • Paying taxes to imports of capital goods (most cost USD 10,000) to 24 months with competitive interest rates

Customs interconnected -ECUAPASS

  • Custom less time in the region
  • Electronic procedures

World Exports of Plastic industry

Exports in 2014 were $ 689.846 million, giving an annual average growth of 5.30% in the period 2010 to 2014.

plastics_2

plastics_3

Ecuadorian Exports in the plastic industry

plastics_4

plastics_5

Ecuadorian Imports in the pharmaceutical industry

plastics_6

plastics_7

Paintings investment sector in Ecuador

The total investment in the manufacturing sector is USD 623 million from 2010 to 2014.

The greenfield investment in Ecuador recorded in 2011: a Netherlands’ investor for a total of $ 64 million.

paintings_1

 

GREENFIELD FDI FLOW OF PAINTINGS IN ECUADOR
GREENFIELD FDI FLOW OF PAINTINGS IN ECUADOR SUB
Millions USD, N° Projects, Jobs created
Country Projects Capex Jobs Created
Netherlands 1 64 92

Production costs in paintings sector The costs of operating in Ecuador are 27% less than the average annual cost of competing countries.

Comparison operating cost per country

paintings_2

Incentives for paintings sector

Paintings is a prioritized sector, and it has the next incentives: Income Tax exemption during 5 years starting when income is generated:New investments in Prioritized Sectors and Imports Substitutions (both total 18 sectors) Who can apply?- New Companies (incorporated after issuance of COPCI – December 29 of 2010) – New investments developed outside urban areas of Quito and Guayaquil- Investments in Prioritized sectors, or Imports substitutions  Other incentivesExemption of Currency Outflow Tax in case of loan payments (principal & interests) given to financial institutions located abroad.
The loan period shall be over 1 year, the interest rate shall be lower than the referential active interest rate given by the Central Bank of Ecuador in the date of the loan registration. Does not apply for loan given by related parties or financial institutions located in tax heavens. Total or partial reduction of tariffs on import of capital goods, classified as goods not produced locally /or whose technical standards are not generated in the country (Resolution 082, COMEX).

Customs facilities

Single Window for Foreign Trade (VUE) :

  • Simplifies procedures , time and costs
  • Electronic documentation

Ease of tax payments

  • Paying taxes to imports of capital goods (most cost USD 10,000) to 24 months with competitive interest rates

Customs interconnected -ECUAPASS

  •  Custom less time in the region
  • Electronic procedures

World Exports of Paintings industry

Exports in 2014 were $ 37.646 million, giving an annual average growth of 2,81% in the period 2010 to 2014.

paintings_3

Ecuadorian Exports in the paintings industry

paintings_4

 

 

paintings_5

Ecuadorian Imports in the paintings industry

paintings_6

paintings_7