Rubber and plastics technology specialist ContiTech (Hanover / Germany; www.contitech.de) plans to invest EUR 17m in a new hose plant in Macae, Rio de Janeiro / Brazil. The project will take advantage of strong demand for floating and drilling hoses in the country.

ContiTech said it has signed an agreement to purchase a plot of land and construction is expected to begin in spring 2013. Start-up is expected one year later.

"The decades to come will see Brazil develop new and ever deeper oil and gas reserves, as well as construct numerous floating production, storage and offloading units. This will mean extremely strong growth in the South American market for our floating and drilling hoses," said Matthias Schönberg, head of ContiTech’s fluid technology business. The project is located close to customers' production facilities, he added. Macae is considered to be the centre of the Brazilian offshore petroleum industry.

ContiTech said the new plant will complement its existing oil & marine plants and engineering offices in the UK, Hungary, USA and Germany. The oil & marine segment is part of the company’s fluid technology business.