The State of Rio Grande do Sul state is one of the main footwear producers in Brazil. The intense production of footwear and leather goods, added to the supply of components, machines and institutions of education and development, has led this State to be considered the largest footwear cluster in the world. It is estimated that it hosts around 60% of Brazilian component’s companies and 80% of companies that produce machinery for leather and footwear. There are companies in many places, hosting from one to dozens factories that also become clusters due to their features. According to data from 2007, this State has around 2,700 shoe companies, which employ more than 100 thousand direct jobs. Around 30 percent of Brazilian pairs of shoes exports leave Rio Grande do Sul. In 2008, the shipments added up 51 million pairs and created revenue of US$1.1 billion. Despite the fact that productive units are spread in many cities, Rio Grande do Sul concentrates some shoe poles in the cities located in Rio dos Sinos Valley, Paranhana Valley, Mountain region and Taquari Valley. The reason for this status comes from the 19th century, when the first German immigrants, in 1825, and Italians, around 1890, arrived and settled at these valleys, bringing with them the ancient art of processing leather. In early 20th century, there were complete companies serving the region and selling shoes all over Brazil and to some neighboring countries.