Biology of Business

Juiz de Fora

TL;DR

Juiz de Fora built Latin America's first hydroelectric plant in 1889 — to power cotton mills, it also powered South America's first electric tram — then parlayed that industrial head start into Mercedes-Benz's first Brazilian factory (1956-2020).

By Alex Denne

Juiz de Fora owes its name to a judge — a Portuguese magistrate who supervised construction of a river crossing on the Caminho Novo, the colonial mule road opened in 1725 to carry Minas Gerais gold to the coast. The city grew at a ford on that road, at 707 metres in the Zona da Mata, midway between Rio de Janeiro and what would become Belo Horizonte. The road made Juiz de Fora; the road's logic persisted.

In 1889, the textile manufacturer Bernardo Mascarenhas commissioned the Marmelos-Zero Power Plant on the Paraibuna River. It was among the first hydroelectric plants in the Americas, built to power his cotton mills — and it generated enough surplus electricity to power the city's street lighting and an electric tram system. The Juiz de Fora electric tramway, electrified using Marmelos power, is frequently cited as among South America's earliest electric public transit. The city's reputation as the 'Manchester of Minas Gerais' rested on this foundation: textile production powered by hydroelectricity at a time when most of Brazil still used kerosene.

Manufacturing succession followed the same Caminho Novo logic. In 1999, Mercedes-Benz opened its Juiz de Fora factory — a second Brazilian production site complementing its original São Bernardo do Campo facility — drawn by the city's rail connections, the existing industrial workforce, and its position between Brazil's two largest markets. The plant produced A-Class and C-Class vehicles for the Brazilian market before Mercedes closed it in 2020, consolidating production after pandemic-related demand collapse. The closure did not erase the manufacturing tradition; Juiz de Fora retains a substantial industrial base along with the Universidade Federal de Juiz de Fora, founded 1960, which now anchors a services and technology sector.

The beaver does not simply occupy an environment — it engineers one. It builds dams that raise water tables, create wetland habitat, and transform the energy economics of the landscape for decades afterward. Every subsequent ecological decision in that watershed runs through infrastructure the beaver created. Juiz de Fora followed the same logic: the 1889 hydroelectric dam was not just power generation — it was a reshaping of what was possible in the city. It attracted textiles, then Mercedes, then the university, each wave building on the infrastructure the previous wave left behind. The Caminho Novo mule track became a road, then a railway, then a highway. The ford became a city. The dam became an industrial tradition.

Underappreciated Fact

Juiz de Fora's 1889 Marmelos-Zero hydroelectric plant — built to power cotton mills — also powered what is cited as South America's first electric tram, making this Minas Gerais city the birthplace of electric public transit in the Americas.

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