MPGShipyard docks into the Middle East

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

MPG is a metalworking production company that recently refocused to the shipbuilding activity, particularly hulls for offshore support vessel (OSV) for staff and equipment transport to oil platforms. As offshore oil platforms increase, so does the demand for OSV, particularly in the Middle East - one of world’s leaders in the offshore investment. Since the Portuguese market doesn’t present itself as solution and the European market is highly competitive, it is necessary to develop an internationalization plan - the Middle East appears as a very attractive opportunity for MPG to develop operations and gain new competences, like the delivery of a ready to use vessel. Considering the Middle Eastern market, a joint venture with a Qatari shipping company arises as the best way to achieve the company’s goals. To pursue that path, MPG must first develop new services from project management to production follow-up to other companies; contact Portuguese and Qatari institutions for market information and financial assistance and attend promotional events in the Middle East. MPG would focus on design, planning and production vessels, its main competences, leaving the investment of $200 million1 in facilities, equipment and the other activities to its partner. Since finding the right partner is crucial to be successful, MPG may start with exports for the Middle East region, get experience and knowledge of the market and only then find a Qatari partner.