NOV Inc Announces $200 Million Expansion to Double Subsea Flexible Pipe Manufacturing Capacity in Brazil’s Açu Facility
NOV Inc Boosts Subsea Flexible Pipe Production in Brazil with Major Facility Upgrade
HOUSTON — NOV Inc. (NYSE: NOV) revealed plans on March 25, 2026, for a significant upgrade to its subsea flexible pipe operations in Brazil. The company will nearly double manufacturing output at its established Açu facility through a $200 million program spread across the next three years, with new capacity scheduled to come online toward the end of 2029.
This move responds to robust long-term market needs in deepwater developments and the upcoming wave of replacements for existing flexible pipe systems. The Açu plant currently runs at or close to maximum output, supported by a solid order book that stretches into 2028.
Jose Bayardo, Chairman, President and Chief Executive Officer of NOV, highlighted that without this added production, industry-wide capacity may fall short of requirements by the late 2020s and into the 2030s. He emphasized the strategic timing to support sustained global energy demand.
Advanced Technology and Cost-Efficient Design
The expansion will allow NOV to roll out specialized CO₂-resistant subsea flexible pipes tailored for high-CO₂ environments, a key requirement in certain Brazilian offshore fields. These innovations build on an existing pre-commercial collaboration with Petrobras focused on production and gas injection risers and flowlines.
Notably, the original layout of the Açu site was engineered to support such growth at a much lower expense compared to constructing an entirely new facility from the ground up. This approach maximizes efficiency while minimizing overall project costs.
Strong Industry Backing from Petrobras
Flavio Bretanha, Executive Manager for Subsea Systems at Petrobras, welcomed the development. He noted that flexible pipes play an essential role in helping Petrobras meet its ambitious offshore output objectives, reinforcing the importance of local manufacturing enhancements.
The project will add roughly $50 million to NOV’s capital expenditure budget for 2026. With more than 150 years of experience delivering technology-focused solutions to the worldwide energy sector, NOV continues to strengthen its position in critical subsea infrastructure.
Recent Company Performance Highlights
In its fourth-quarter 2025 results, NOV reported revenue of $2.28 billion, surpassing analyst projections, though earnings per share came in at 21 cents against an expected 25 cents. The company also raised its regular quarterly cash dividend by 20% to $0.09 per share, payable on March 27, 2026.
Following the earnings release, BMO Capital adjusted its price target on NOV shares upward to $20 from $19 while keeping a Market Perform recommendation. Separately, board member Ben A. Guill stepped down for personal reasons, with no underlying conflicts mentioned.
This update draws on official company statements and aims to provide a clear overview of the strategic developments at NOV.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.