NOV Inc. (NYSE: NOV) announced plans to roughly double the capacity of its subsea flexible pipe manufacturing facility in Açu, Brazil, through a $200 million investment over the next three years.

The expansion aims to address sustained high utilization and a backlog that extends into 2028 at the company's existing facilities. NOV expects the additional capacity to come online in late 2029 to meet anticipated demand from deepwater developments and replacement cycles for flexible pipe installations.

"Our current manufacturing capacity has been operating at or near full utilization and has a backlog that stretches well into 2028," said Jose Bayardo, Chairman, President and Chief Executive Officer of NOV. The company projects that industry capacity will be insufficient to meet demand at the end of this decade without additional manufacturing capability.

The expansion will enable NOV to introduce new technologies, including CO₂-resistant subsea flexible pipe designed for high-CO₂ applications. The company states its Açu facility was originally designed to accommodate this type of expansion at a lower cost than building a new plant with comparable capacity.

Petrobras, described as the world's largest consumer of subsea flexible pipe, expressed support for the investment. "Subsea flexible pipe is a critical component in enabling Petrobras to achieve its offshore production targets," stated Flavio Bretanha, Executive Manager for Subsea Systems at Petrobras.

The investment will increase NOV's 2026 capital expenditure plan by approximately $50 million, according to the company's press release statement.