China’s Rainbow Heavy Industries (RHI) has announced that it is going to close lits offshore design subsidiary Shanghai Ouwei Offshore Engineering Technology Company.
Shanghai Ouwei Offshore Engineering Technology was established in 2015 with an aim to support the business of RHI’s offshore yard Rainbow Offshore.
RHI said the recession of offshore exploration activities have led to overcapacity in the offshore equipment sector, and it expected the situation to continue in the next few years. The company has decided to downsize its offshore business in order to cut cost and optimize overall operations.
