Rio, 5/6/2004 (Agência Brasil - ABr) - Transpetro, the Petrobras subsidiary for transportation, has emitted an official note reaffirming that it will build 22 new ships in Brazilian shipyards. The reason for the note cited was "the circulation of news reports to the effect that Transpetro intended to have the ships built abroad."

In the note the president of Tranpetro, Sergio Machado, declared that the decision to build domestically was made " in order to contribute to the economic and social development of Brazil and assist the revitalization of the domestic shipbuilding industry."

According to Transpetro, the orders for the new ships will inject US$1.3 billion into the economy and create 24,000 jobs, along with 120,000 indirect jobs. It is expected that 60% of the components in the construction will be made in Brazil.

Translator: Allen Bennett