Oil Multinational TechnipFMC Announces It Will End Pipe Production in Espírito Santo, and Seven Thousand Workers May Lose Their Jobs

Seven thousand workers from Espírito Santo may lose their jobs. TechnipFMC announced that it will close the Flexibrás Vitória plant in December, a company controlled by the oil multinational that produces flexible pipes in the capital, in the Porto de Vitória region, while the company’s other activities will remain in the state. 2 thousand jobs will be created in Espírito Santo due to the deactivation of oil fields and decommissioning of platforms

The pandemic caused by the new coronavirus and the crisis in the oil and gas sector resulted in another downturn in the economy of Espírito Santo. The closure of TechnipFMC’s main activity in Vitória harms the entire oil and gas supply chain as well as other sectors of the economy, experts say.

Currently, the Flexibrás Vitória plant employs a thousand workers. According to oil and gas sector consultant Durval Vieira de Freitas, for every lost direct job in the sector, six indirect jobs are affected, meaning seven thousand workers may become unemployed.

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The oil multinational assured that its other activities in Espírito Santo remain unchanged and any new decision will be communicated later.

“All decisions will be made with the utmost care regarding the impact on our employees, clients, and communities. With a strong presence in Brazil, TechnipFMC remains committed to its current operations and its participation in the future of the Brazilian oil and gas sector,” the company stated.

TechnipFMC Operations Closed in Espírito Santo Will Be Redirected to Rio de Janeiro

According to the multinational, the flexible pipe plant will be redirected to the unit in Açu, Rio de Janeiro, which focuses on high-tech products.

“The unprecedented drop in market activities due to the Covid-19 pandemic and the decrease in demand for oil and gas led to several difficult organizational changes at TechnipFMC,” the company reported.

“To take from one to give to another,” with TechnipFMC’s decision to move its plant to Rio de Janeiro, professionals in the region may benefit, as the Franco-American entity may require labor and new job openings may arise.