Entered into the First Oil Shipbuilding Agreement Worth Over US$200 Million
soruce：manager click：5287 time：2014-08-14
(15 Aug 2014, Hong Kong) A leading global land drilling rig manufacturer – Honghua Group Ltd. (Stock Code: 196.HK) (“Honghua” or the “Group”), is pleased to announce that Honghua Offshore Oil&Gas Equipment (Jiangsu) Co., Ltd. (“Honghua Offshore”), an indirect wholly-owned subsidiary of Honghua, entered into a ship building agreement with UDIN Engineering Co., Ltd., a korean offshore engineering company. According to the ship construction agreement, Honghua Offshore will construct and sell six oil ship with certain specification to UDIN worth over US$200 million, which amounted to approximately 15% of the annual revenue of Honghua for the year ended 31 December 2013.
Mr. Zhang Mi, Chairman of Honghua commented, “This ship building agreement signals Honghua Offshore has built up the diversified operation capabilities that enable the Group enter into energy related transportation equipment field, such as large LNG carrier. Besides, this is the significant step for the Group to promote the innovative concept “onshore manufacturing of offshore equipment”, representing our excellent capabilities in designing and constructing core offshore equipment. Honghua will leverage its R&D capability and effectively make use of existing resource in offshore oil and gas drilling equipment manufacturing base, and fully exert the edges of innovative core equipment “Honghai crane” which will be available in the short run, to further expand offshore business and optimize its strategic distribution. ”
About Honghua Group Limited (Stock Code: 196.HK)
Honghua is one of the largest land drilling equipment manufacturers in the world, which is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, as well as the parts and components for the drilling rigs or for the maintenance of the drilling rigs in operation. Leveraging on the strong R&D strength, high-quality production facilities and mature international sales network, the Group’s products have been sold to a large number of famous enterprises all over the world, including major oil-production regions such as North America, Middle East, and emerging markets including South America, India, Russia, China, Africa. Meanwhile, the overall construction of the base located in Qidong County, Jiangsu Province progressed well, among which the dock basin project has passed the examination of related departments and the overall lifting of “Honghai crane” is expected to complete in 2015. Based on the existing solid foundation of the drilling rigs equipment, Honghua will implement diverse development strategies, and expand to become the integrated enterprise which is involved in the interaction development of three major sectors, including onshore and offshore areas, equipment manufacturing and oil and gas resources development (especially the unconventional oil and gas area), as well as engineering services.
For further information, please contact:
Honghua Group Limited
Ms. Mingjia Ding
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