Huge Brazil yard gets green light

23 Jun 2011

Brazilian authorities have rubber-stamped a deal to push through financing for what is being billed as the largest shipyard in the Americas following the agreement by the Merchant Marine Fund (FMM) to fund the construction.

The shipbuilding facility, set to cost about $1.7 billion, is being jointly built by OSX offshoot, OSX Construcao Naval, and South Korean shipbuilder Hyundai Heavy Industries, which holds a 10% stake. It will be based at the port of Acu industrial complex in Sao Joao da Barra, in Rio de Janeiro state.

Earlier this year, OSX had already ordered $2.7 billion worth of equipment for the facility which is set to create 3,500 new construction jobs and a further 10,000 in the construction phase. It is the intention that OSX will reach Asian productivity levels within two years and is set to be able to handle 180,000 tonnes of steel per year. The yard is located just 150km from the Campos basin, which accounts for 85% of Brazil’s current oil production.

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