Offshore equipment supplier SBI Offshore and land rig manufacturer Honghua Group have formed a joint venture firm to offer large-scale contract manufacturing services to global offshore and marine industries, Seatrade Asia online reports. The new firm HS Offshore will be 70% owned by China-based Honghua and 30% owned by Singapore-listed SBI Offshore.
HS Offshore will leverage on Honghua's production facilities in land rigs and SBI Offshore's knowledge of drilling equipment and expertise in the offshore and marine sector.
“This joint venture will allow Honghua to accelerate its expansion into the offshore sector as equipment makes up 50-65% of the total cost of an offshore rig or construction vessel. Honghua believes that this joint venture will boost the competitiveness and capabilities of its proposed offshore production base in Qidong, Jiangsu Province, China,” said Zhang Mi, chairman and president of Honghua.
HS Offshore will leverage on Honghua's production facilities in land rigs and SBI Offshore's knowledge of drilling equipment and expertise in the offshore and marine sector.
“This joint venture will allow Honghua to accelerate its expansion into the offshore sector as equipment makes up 50-65% of the total cost of an offshore rig or construction vessel. Honghua believes that this joint venture will boost the competitiveness and capabilities of its proposed offshore production base in Qidong, Jiangsu Province, China,” said Zhang Mi, chairman and president of Honghua.