NOV Inc. announced a $200 million investment to roughly double the capacity of its subsea flexible pipe manufacturing facility in Açu, Brazil, over the next three years. The expansion will bring the facility’s output online in late 2029, adding about 50 % to its current production capacity.
The investment includes the development of a CO₂‑resistant subsea flexible pipe designed for high‑CO₂ applications, a technology that addresses corrosion challenges in deepwater wells. The new capacity will also allow NOV to meet a backlog that extends well into 2028 and to capture growth in the deepwater segment.
Management said the expansion is driven by sustained, long‑term demand from deepwater developments and the expected replacement cycle for flexible pipe installations. CEO Jose Bayardo noted that the facility is operating at or near full utilization and that the additional capacity is critical to meeting demand through the 2030s.
The $200 million outlay adds $50 million to NOV’s 2026 capital‑expenditure plan. The company’s strong free‑cash‑flow generation of $876 million in 2025 and a net‑debt/EBITDA ratio of 0.2x provide a solid balance‑sheet foundation for the investment.
Petrobras, the world’s largest consumer of subsea flexible pipe, has expressed support for the expansion, citing the need for local manufacturing to meet its offshore production targets. The partnership underscores the strategic importance of the new CO₂‑resistant technology for Brazil’s deepwater projects.
Analysts have maintained a “Hold” consensus on NOV, with a median price target of $20.00. The investment is viewed as a long‑term growth catalyst rather than a short‑term earnings driver, and the company’s guidance for 2026 reflects confidence in sustaining profitability while investing in capacity.
The expansion positions NOV to capture a growing share of the subsea flexible pipe market, particularly in high‑CO₂ environments, and strengthens its competitive stance against peers that lack similar technology. The move also aligns with industry trends toward deeper water development and advanced corrosion‑resistant solutions.
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