Inace

COMPANY PROFILE

2015

INACE

www.inace.com.br | +55 85 3455 1800

The pioneers of Brazilian Shipbuilding Editorial: Ajuanne Payne

INACE (Indústria Naval do Ceará), a family owned 100% Brazilian company and a national leader in building offshore vessels, yachts and navy patrol vessels. With over 900 vessels built over the past four decades and founded on one man’s pioneering spirit, the company has combined tradition with innovation to become the success it is today.

INACE (Indústria Naval do Ceará) is a shipbuilding company with a significant reputation in Brazil today, but the company’s beginnings are somewhat accidental. It was founded by current CEO, Gil Bezerra back in 1965 as a result of his personal interest in lobster fishing.

Bezerra had decided to design his own wooden fishing boat, having it custom-built by local carpenters. Once the boat was made, he received significant interest from local fishing companies, who started persuading him to have boats

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made for them also. In fact, demand was such that Bezerra ended up going in to the boatbuilding industry full-time.

Bezerra had never thought his recreational pursuit would lead to becoming the CEO of an internationally recognised shipbuilding company. A company which, to this day, is still privately owned – a family business that has built up a reputation over four decades as pioneers and innovators in the Brazilian shipbuilding industry.

Following the burst of interest from locals, Bezerra purchased

an abandoned strip of seafront in the centre of Fortaleza that he thought would be ideal for shipbuilding. After investing in equipment, he started up business in 1969 as Indústrial Naval do Ceará (INACE). INACE’s initial business was in fishing boats servicing the local market and they quickly became the leaders in this industry in the region.

AN ORIGINAL APPROACH Continuing Bezerra’s pioneering spirit; INACE was the first manufacturer in North and

INACE North Eastern Brazil to use aluminium in the construction of its boats. Undertaking largescale construction of electrically soldered aluminium boats it soon became the leader in this market in the region.

Soon after, due to increased demand, INACE invested in the installation of an assembly line that allowed for the construction of a large number of vessels in a short space of time. In the early 70’s the company acquired a railway turner.

A device which allowed for a 180 degree rotation of railway carriages, Bezerra’s team adapted this for use on boats and ships. This method meant that, fitted with train wheels for the train track that was installed within the yard, a boat can be moved quickly and released easily into the water.

In a conventional yard the entirety of this construction would take place on the slope leading to the water, which meant that this area could not be used until that project was completed. The method, named

by Bezerra as the ‘radial system’ meant the team at INACE could utilize all available space at the shipyard. The upshot of this pioneering thinking by Bezerra was 600 vessels delivered in his first 20 years in business – which accounts for about 80% of the entire fishing fleet in the North and North East of Brazil.

Following this dominance of the fishing market and continuing with the pioneering spirit of the business, INACE purchased three fishing companies along with a refrigeration plant where shrimp and lobster could be stored before export.

DIVERSIFICATION In the early 80’s in Brazil the government introduced a major incentive plan to encourage the entire naval sector - then positioned as the world’s second. It was as a direct result of this that INACE started producing torpedo launches for the Brazilian Navy and it also saw the beginnings of INACE’s business servicing the offshore market. It was then that the company started producing supply boats and offshore transportation vessels for oil and gas companies. Today, INACE is in fact the only Brazilian company who builds vessels for the Brazilian Navy.

Following this government incentive program, INACE decided on a significant expansion plan to triple the length of the pre-existing

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breakwater. This would create a huge marina area over which the company could extend its construction area by 14 hectares.

The works were completed in 1984 and greatly added to the yard’s capabilities.

By this point, INACE was producing a range of vessels – from fishing boats to support vessels for oil exploration, tugs and combat vessels. The founder, Gil Bezerra, a pioneering spirit at heart decided it was time to diversify the company’s offering further. He again wanted to enter a market of which he would be the first in his region – the luxury yacht market.

A BOLD MOVE In 1987 the construction of high-end yachts in Ceará and

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“Today, one third of INACE’s revenues come from the offshore market, with the other two thirds coming from the luxury yacht market and their service to the Brazilian Navy”

even Brazil was considered unattainable by many. Taking a chance and banking on the quality his yard was able to produce, Bezerra built six yachts out of aluminium without any prior orders. He took them to the U.S. and sold them for a reduced price as they were not a tailormade product. This bold move served to get the INACE name out there and establish another lucrative market for the business.

Since that fateful point in 1987, INACE has custom-made over 30 yachts for the American market alone, while also servicing customers in Europe, Italy, Canada and Brazil. A huge competitive advantage for INACE is not only the quality, but the cost. In comparison with their European counterparts, where

INACE

the cost of labour is significantly higher, they are able to custom produce these large luxury yachts while keeping manufacturing costs down.

It was decisions like entering the luxury market that have ensured the growth of the company and buffered INACE against changes in the market.

INACE was one of the very few domestic shipyards that did not have to shut down or change hands during the crisis that affected the Brazilian shipbuilding sector in the 90s - managing to maintain itself as a 100% Brazilian company. The sector now employs close to 65,000 in Brazil, but go back a few decades and that figure doesn’t even reach 5,000.

By the 2000’s, INACE was

“Bezerra had never thought his recreational pursuit would lead to becoming the CEO of an internationally recognised shipbuilding company. A company which, to this day, is still a privately owned family business”

enjoying 30 to 40% annual growth rates and increased interest internationally for its large tailor-made luxury yachts.

At this point the company was looking towards a future where 90% of its business would be in the export of custom luxury private boats – a natural progression from their successes in this market in the last decade.

MARKET CHANGES It was at this point that the global economic crisis hit businesses worldwide and the market for big-ticket luxury items started shrinking fast. While American and European economies floundered, Brazil’s was one of the few to experience only a brief crisis. The country quickly bounced back and experienced

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an unexpected boom in its the U.S. Total Worldeconomy.

Energy 1215While 88x125.indd 1 Dollar dropped in value, the Brazilian Real increased in value comparatively.

Following this, INACE made a concerted jump into the offshore market. The shipyard has 25 years of experience in building offshore support vessels, but it was a historic discovery for the country that really propelled this segment for the company.

A pre-salt layer just off the coast of Brazil was found, under which lay enough oil to make the country self-sufficient

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Considering that INACE only really entered the offshore market in the 2000’s, it is quite impressive that that area now makes up a third of their business.

In order to service their burgeoning offshore market, and fulfil contracts for Petrobras, INACE once again invested heavily in the infrastructure of the business. They hired new project engineers in order to bring in expertise, which led them to the development of the UT 4,000 50-meter supply vessel.

Similarly to when the company produced its first ever yachts, or its first boat for the Brazilian Navy, this boat was a milestone for the company. It is the most advanced and largest smallmedium sized vessel of its kind ever built in Brazil. INACE invested heavily in complex technology and components to make sure they were delivering a world-class product.

Industry incentive programs in Brazil encourage shipbuilders to use national suppliers, but in order to meet the demands of Petrobras INACE had to and to also make it one of look overseas for technology the world’s largest producers and materials. A lack of the 20/01/2015 14:19 and exporters of crude oil. right skills also meant that, as Petrobras, the state-owned well as increasing the training energy company now one of the they provided the company world’s foremost, had a sudden had to contract overseas for and pressing need for vessels. specialized workers.

Vessels were in demand for Considering the boom in work in ports and offshore and the offshore market countryINACE was in an ideal position wide INACE were not the only to service that.

Today, one third of INACE’s revenues come from the offshore market, with the other two thirds coming from the luxury yacht market and their service to the Brazilian Navy.

company to try and service the need for offshore vessels, but its long and prosperous history ensured it was a frontrunner. Reputation is key, and decades of pioneering design and quality workmanship were

a huge competitive advantage for the company. They are also still less expensive than their counterparts in the south of Brazil and the investments the company had made into training its staff meant they were a step ahead in being able to provide skilled labour.

Today, INACE has built a wide range of offshore support vessels, Crew boats, Platform Supply Vessels and is, of course, a pioneer in the construction of aluminium Fast Supply Vessels (FSVs).

INACE has an intriguing and successful history, with founder Gil Bezerra and his wife still at the helm and firmly in charge.

For a company that started out almost by accident, INACE has navigated economic crises,

anuncio_worldtradeenergy quarta-feira, 28 de janeiro de 2015 15:59:51

inter national expansion, and diversification expertly to get it to where it is today. W ith the rest of the Bezerra family involved in the business and a strong culture of

pioneering decision making and innovation, there can only be plain-sailing ahead for INACE

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