Prysmian to build flexible tubes factory
Valor Econômico - 06/05/2008
Announced yesterday, Prysmian's - new factory in the country, announced yesterday with the objective of meetings Petrobras' demands for flexible tubes for the exploration of oil in deep waters should have revenues of US$ 400 million a year when in full capacity. Besides the first contract with Petrobras - in the value of US$ 135 million - the manufacturer can sell the materials to other companies of the sector, as long as it prioritizes the orders of the state-owned company. Initially 2.5- and 4-inch flexible tubes will be produced in the unit. But both companies are already negotiating a new contract to produce wider diameters (6, 8 and 12 inches). The foreseen investment to build the factory is US$ 110 million. The location of the unit has not been defined yet, but, according to Prysmian's president in the country, Armando Comparato Jr., the idea is to install it next to the company's factory in Vila Velha (ES). In case it is not possible, one of the alternatives would be to look for an area in Santos (SP), also having easy access to Petrobras' exploration fields. In the beginning of 2006, the state-owned company signed a contract with Prysmian, former Pirelli Cabos, in the value of US$ 70 million to produce umbilical cables, which resulted in the construction of the Vila Velha factory. Both the umbilical cables and the flexible tubes are used in the exploration of oil in deep waters. According to Comparato, one and a half years ago Petrobrás consulted Prysmian about the development of the flexible tubes, made out of nylon, and steel bands and profiles. "Since we already had the Vila Velha factory, Petrobrás offered us entering in that new market segment." According to Comparato, the investment to develop the 2.5- and 4-inch tubes was approximately US$ 10 million. The wider diameters will have investments between US$ 15 and US$ 20 million. The new factory will begin production in 2010. A year later it should reach full capacity, with estimated production between 180 and 240 kilometers per year. From the invested total, US$ 80 million will be to purchase machines.