Home Brazilian shipbuilding industry could reach 80 unemployed by 2020

Brazilian shipbuilding industry could reach 80 unemployed by 2020

2 from 2018 from September to 22: 58
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ship industry brazil crisis

As platforms built in China are cheaper, oil companies are canceling orders from Brazilian shipyards

The shipbuilding industry in Brazil has laid off at least 60 workers since the beginning of the crisis in 2014, most of whom are qualified professionals. In the 2000s, this industry was revitalized to give priority to local content (hiring of national equipment and services in the oil and gas sector) but as a result of the corruption scandals at Petrobras triggered by Lava Jato and the devaluation of the barrel of oil, this number has been decreasing and could reach 80 thousand in just over 1 year. Today, 25 workers are employed, but without new prospects for works, Sinaval foresees a reduction to 6 thousand jobs.

To reduce expenses with the shipbuilding industry, Petrobras has been ordering offshore units on the Asian continent, especially in China. Since 2016, 9 platforms have been ordered and built in Chinese shipyards. It seems that this scenario is not going to improve anytime soon according to industry experts. In the short term, the state-owned company will order even more units from China to serve the pre-salt in Brazil. Other oil companies of the same modality that carry out work in the national territory are also articulating in the same methodology as Petrobras.

Until August 2018, the ANP received 300 requests for the local content rules to be modified, that is, companies are articulating to stop consuming products and equipment from Brazil to buy abroad. Petrobras says it is evaluating proposals that are more competitive and that are within compliance standards, regardless of where they are built.

Situation of some shipyards

The Atlântico Sul Shipyard employed 18 people and currently has 3.500. According to the president of EAS, 5 Transpetro ships are in the completion phase, 3 will be delivered this year and 2 more in mid-2019. There is no forecast for new orders and the shipyard may probably close.

At Enseada, in Bahia, the prospects are not positive either. Maurício Almeida, president of the shipyard, also finds it difficult for the sector to create opportunities again with the displacement of orders to Asia

Brazil will need 39 platforms over the next 20 years

The president of Sinaval says that new industrial policies will be necessary for the naval industry in Brazil to regain competitiveness. According to estimates, 39 platforms are planned by 2038 to be built to serve the national oil industry and all of them could be built in shipyards abroad if nothing is done now.

Enseada signs contract and receives drilling rig from Ocyan

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