NOV Expands Açu Plant with $200M to Double Subsea Pipe Capacity and Add CO₂-Resistant Technology
NOV commits $200 million to double subsea flexible pipe output at its Açu, Brazil facility by late 2029, guided by full utilization and backlog through 2028. The expansion introduces CO₂-resistant pipe technology and raises 2026 capex by $50 million to meet rising deepwater development demand.
1. Expansion Overview
NOV will invest $200 million over three years to double subsea flexible pipe manufacturing capacity at its Açu, Brazil facility. The project targets late 2029 completion and increases the 2026 capital expenditure plan by $50 million.
2. Demand Drivers and Backlog
Existing subsea pipe facilities operate at near-full utilization with a robust backlog extending into 2028. Growth in deepwater developments and replacement cycles for flexible pipe installations underpin the expansion, addressing anticipated supply shortages into the 2030s.
3. CO₂-Resistant Technology
The expanded facility will introduce a new subsea flexible pipe capable of withstanding high CO₂ concentrations, opening opportunities in carbon-rich offshore fields. This technology enhancement aims to capture emerging market segments and strengthen NOV's competitive position.
4. Strategic Partnership
The expansion is backed by long-term partnerships with key customers like Petrobras, which relies on subsea flexible pipe for offshore production targets. The modular design of the Açu plant enables cost-effective capacity increases compared to building a new greenfield facility.