Start Brazilian shipyards cannot compete with China

Brazilian shipyards cannot compete with China

May 7, 2018 4:00 pm to 4:00 pm
Follow us on Google News
china shipyard cheap labor

With cheap labor and few taxes, Chinese shipyards could break the Brazilian shipbuilding industry in 2020

Companies in the naval sector guarantee that they are in a position to meet Petrobras' future demand. According to Sérgio Bacci, vice president of Sinaval, which brings together the shipyards, the national industry is able to compete in terms of prices and terms with competitors, provided that equal conditions are given, especially in the tax area. Even so, he recognizes that it is not possible to match the Chinese.

  • No shipyard, Brazilian, Italian, Norwegian, can practice the price of China. The way labor and taxes are paid are different, they don't have our cost. If we consider how much we pay in taxes and labor here, we are competitive,” said Bacci, adding that at least ten shipyards have the capacity to build platform ships.

To avoid closing, shipyards have sought to diversify activities. They are preparing to participate in the Navy tender for the construction of four corvettes (warships). The ships will be built in the country and foreign shipyards are talking to the local industry in search of partnerships. This week, the Goa Shipyard from India was in Brazil.

  • We are working so that the industry does not die. If nothing is done, in 2020 we will no longer have a naval industry – said Bacci.


The Enseada Indústria Naval shipyard, in Paraguaçu, in the interior of Bahia – which came out of extrajudicial recovery in November last year -, reflects the situation in the sector. Built at the beginning of the decade to manufacture six rigs ordered by Sete Brasil (under judicial reorganization), it has 80% of the works completed. The shipyard has debts of R$ 2.6 billion and is seeking orders, including outside the oil and gas sector, to rebuild.

The president of Enseada, Fernando Barbosa, says that the only adaptation for the construction of platforms would be the construction of a dry dock to manufacture the hull, which would not be a problem. Today, 80 employees work to maintain facilities. Enseada has Odebrecht and OAS as partners and is looking for new partners to continue its activities. The Japanese company Kawasaki, technological partner, will leave the enterprise until the end of the first semester.

  • An environment is being created that will attract new operators who will look for Brazil to provide services. I'm optimistic – said Barbosa.

The Atlântico Sul Shipyard (EAS), in Pernambuco, would also build rigs for Sete Brasil. He is negotiating with the government to temporarily suspend employment contracts to avoid layoffs among the 3,700 workers. According to Harro Burmann, president of EAS, the shipyard will complete five Transpetro oil tankers by May 2019, which are on schedule. He is not optimistic about new orders from Petrobras:

  • With China there is no competition, with the costs they have in labor and steel. Without equal conditions, I don't believe in orders.

Most recent