German firm ContiTech will invest EUR17 million to set up a hose plant in Brazil for use in oil production and gas extraction. Construction is scheduled to commence in spring 2013.
With Brazil to develop new and ever deeper oil and gas reserves as well as construct numerous floating production, storage and offloading units (FPSOs), strong growth is expected in the South American market for ContiTech’s floating and drilling hoses.
The new plant will complement the established Oil & Marine plants and engineering offices in the UK, Hungary, the US, and Germany. The segment forms part of the ContiTech Fluid Technology business unit, which is ContiTech’s largest business unit with around EUR1.3 billion in sales and 14,000 employees. (RJA)