Trelleborg is to invest approximately SEK 160 M over a two-year period in a new plant for development and production in Brazil.
The plant will manufacture products for the strongly growing offshore oil and gas extraction industry in Brazil. In recent years, major discoveries have been made off the coast of Brazil and in 2014. Brazil is expected to be the largest market in global terms for the products and solutions offered by Trelleborg.
“Trelleborg’s high-tech products and solutions are well-suited to this industry, since it is a sector that requires advanced technical equipment,” says Lennart Johansson, business area President of Trelleborg Engineered Systems. “Our customers are relocating increasing amounts of their production to Brazil and it is important that we have manufacturing close to their units. By establishing this plant, we will be the first to have local production in Brazil, thereby gaining an edge over our competitors.”
The plant will be located in the coastal city of Macaé, approximately 180 kilometers north of Rio de Janeiro. Macaé is known as Brazil’s oil capital, since essentially all major project-engineering companies have their facilities there.
For a long time, Trelleborg’s sales to the oil and gas industry in Brazil have been significant and now Trelleborg establishes local product development and production. The products to be manufactured at the new plant include specially designed subsea buoys, bend stiffeners and thermal insulation tape for deep-sea applications. The new plant will be part of the Trelleborg Engineered Systems business area, 25 percent of whose sales are derived from offshore oil and gas.
Trelleborg already has extensive operations in Brazil, with a total of approximately 1,000 employees. The Trelleborg Automotive business area has been long established there, with an organization that combines engineering, testing, production and sales. Also Trelleborg Wheel Systems – with a well-established organization for marketing and sales – as well as Trelleborg Sealing Solutions – with both sales organization and production – have been several years in Brazil.