Wärtsilä to produce engines in Brazil
Valor Econômico
The boom in the shipbuilding industry in Brazil, following the billion dollar investments made by Petrobras, accelerated an agreement entered into by the Finnish Wärtsilä and Nuclep to constitute a joint venture in the country. Wärtsilä wants to build maritime engines in Brazil using the facilities of the Brazilian State company as of the second quarter of 2012.
The company is taking part in the public bidding to provide equipment for the seven drilling rigs that will be built by shipyard Atlantico Sul for Petrobras. Robson Campos, who holds the Presidency of the company in Brazil and the management of services, explains they are running in the bidding - the lot seven rigs will cost US$ 4.637 billion - with an integrated proposal for the supply of the engines, generating sets, propulsion propellers and electric automation. Only the dynamic positioning system will be supplied by another company that has not been chosen yet. The expectation of the multinational is that the outcome of the bidding be announced by Atlântico Sul within three months.
Brazil accounts for 8% of global sales of the company in the world. It is little less than China, which has the largest share, of 10%, but it means the country is already one of the most important markets, along with South Korea and India. The Executive stresses out that the current situation of the so-called central economies requires Wärtsilä to seek markets where there are good growth perspectives. Johansson emphasizes that, in the 21 years the company has been in Brazil, it is the first time such a clear projection of sustainable development is seen for the country.
The investment in the Nuclep should consume part of the € 20 million the Finnish company will invest in Brazil between 2011 and 2012. The investments already made by the Nuclep will be integrated to the capital of the SPC. With the injection of capital and the technology of Wärtsilä, Nuclep will compete to provide the equipment that will be needed to develop the production of oil and gas in the pre-salt.
The Brazilian unit of Wärtsilä has nearly 600 employees and it earned R$ 700 million (US$ 412 million) last year. Besides maritime engines the company also has strong presence in the generation of electric energy. Worldwide, the company earned € 4.6 billion in 2009.