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Five companies will inject US$60 million of investments in Alto Paraná, Paraguay

by | May 11, 2024

Five new companies will be established in Hernandarias, with an estimated investment of US$60 million. César Torres, governor of Alto Paraná, pointed out the importance of these companies in the economic and social growth of the area.

Hernandarias is a district and city of the Alto Paraná Department, Paraguay. It was named after Hernando Arias de Saavedra, the first South American governor born in the Americas. It is located across the highway from the Itaipu Dam.

The department of Alto Paraná, located in the eastern region of Paraguay, is one of the country’s economic drivers due to its industrial and commercial development.

What are some of the industries found in Alto Paraná

The region is home to companies in the construction, metallurgy, plastics production, and chemical manufacturing sectors.

Recently, the governor of Alto Paraná, César Landy Torres, visited five companies that are being established in the city of Hernandarias as new investments in Alto Paraná.

The companies anticipate an aggregate investment of approximately US$60 million, which will create approximately 500 new jobs.

“These companies are contributing significantly to the region’s economic growth and social development,” Torres highlighted.

The Secretary of Industry and Commerce, Esteban Wiens, organized the tour. As a result of this effort, the governor could meet those responsible for the new investments to learn about their progress and economic projections.

The plants visited are engaged in agricultural activities, construction, plastics manufacturing, and the textile sector.

Which are the companies that will make investments in Alto Paraná

Blend Agroscience: a leading firm in the agro-industrial sector, committed to innovation and sustainability in the production of high-quality agricultural inputs. According to a report by the Paraguayan Government, the investment is projected to be US$40 million. In its initial phase, it will provide 200 jobs.

ConstruFenix is a construction company that plays a fundamental role in developing critical infrastructure in the region, generating employment, and promoting local progress. The estimated investment by the construction company is reported to be US$ 2 million.

Plasticos Yguazú is in the process of constructing a new warehouse, which represents a significant investment in the industrial sector and a significant contribution to the area’s economic growth.

Star Plast: a new plastics maquiladora that promises to generate employment and promote the manufacturing industry in Hernandarias, consolidating its position as a critical regional production center.

América TNT: this textile company is expanding its operations by constructing new warehouses, boosting the local textile industry, and providing employment opportunities for the community.

Regarding the investments in Alto Paraná  that each company will make, Governor Torres pointed out: “Only one of them exceeds US$ 40 million; the exact figure has not yet been provided to us because it will depend on the moment in which they bring certain supplies to the state since one of them estimates to start its in Hernandarias  operations in 2026.”

“This motivates us to continue along the path we have set for ourselves over the years, to guarantee legal security for those who come to invest, and to give equal opportunity to everyone by maintaining clear rules in each sector,” Torres concluded.

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The investment environment in Alto Paraná, Paraguay

Investments in Alto Paraná, Paraguay benefit from a dynamic economic environment characterized by diverse industries, a plentiful labor pool, efficient connectivity, and competitive manufacturing wages.

Alto Paraná is located in the eastern part of Paraguay, relatively far from the capital city of Asunción. It is situated in the country’s eastern region, bordering the Paraná River to the east, serving as the natural border with Brazil. Asunción, on the other hand, is situated in the western part of Paraguay, closer to the country’s center. The distance between Asunción and Alto Paraná is approximately 300 kilometers (about 186 miles) by road.

Industries:

Alto Paraná hosts a range of industries, with a significant focus on manufacturing and agribusiness. The region is renowned for producing textiles, garments, electronics, and agricultural products like soybeans and beef. Additionally, it has seen growth in sectors such as automotive parts manufacturing and food processing. This diverse industrial landscape offers opportunities for investors across various sectors.

Labor Availability:

Labor availability in Alto Paraná is abundant, fueled by a growing population and government efforts to promote vocational training and education. The region benefits from a young workforce eager to participate in the expanding economy. Its proximity to urban centers like Ciudad del Este also ensures a steady influx of labor from neighboring areas.

Connectivity:

Alto Paraná enjoys excellent connectivity within Paraguay and other parts of South America. The region is served by a well-developed road network, including major highways connecting it to Asunción, the capital city, and other key urban centers. Furthermore, it has access to modern ports along the Paraná River, facilitating the transportation of goods to and from neighboring countries like Brazil and Argentina. The Guarani International Airport also enhances connectivity by offering air cargo services and passenger flights to regional destinations.

Typical Wages:

Wages for manufacturing workers in Alto Paraná are competitive within the Paraguayan context, offering an attractive balance between cost and quality. While specific wages vary based on skill level, experience, and industry, they generally remain lower than in more developed countries. Still, they are commensurate with living standards in Paraguay. Workers in the manufacturing sector typically earn wages that enable a decent standard of living in the region.

Paraguay has a national minimum wage that applies to all sectors, including manufacturing. As of March 2024, the minimum wage is set at 2,680.37 Paraguayan Guarani (PYG) per month [Trading Economics]. This translates to roughly USD 380 based on current exchange rates. This is the minimum, and some manufacturing workers will likely earn more.

Overall, Alto Paraná presents a favorable investment environment with a diverse industrial base, ample labor supply, efficient connectivity, and competitive manufacturing wages. These factors contribute to its appeal as a strategic location for businesses seeking to establish or expand operations in Paraguay and beyond.

Alto Paraná, Paraguay, is poised for significant economic growth with five new companies set to inject a total of US$60 million in investment and create 500 jobs in the region, particularly in the city of Hernandarias. Governor César Torres emphasized the importance of these investments for both economic and social development. The companies span diverse sectors including agro-industrial, construction, plastics manufacturing, and textiles, reflecting the region’s dynamic industrial landscape. With a focus on maintaining clear rules and legal security for investors, the government aims to foster an environment conducive to business growth. Alto Paraná’s advantages include a skilled labor pool, efficient connectivity via road and river networks, and competitive manufacturing wages. This combination of factors positions Alto Paraná as an attractive destination for investors looking to capitalize on Paraguay’s burgeoning economy.

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