CSSC-affilated Waigaoqiao Shipbuilding has entered into an agreement with offshore equipment manufacturer Honghua Offshore to explore collaboration opportunities in the offshore sector.
Waigaoqiao said the partnership will help the yard to expand its offshore business and make breakthroughs in terms of innovation.
“The partnership will provide new support to the development of Waigaoqiao’s offshore business,” said Wu Yongjun, vice president of Waigaoqiao’s offshore unit.
Last year, Honghua Group planned to get rid of its debt-ridden offshore business and switch its business focus to the LNG sector, however it failed to sell Honghua Offshore, which was suffering from debts of around RMB1.96bn ($285m), to Jiangsu Honghai Energy Equipment due to financing difficulties for the buyer.
Honghua Offshore operates a yard in Qidong, Jiangsu and mainly engages in offshore engineering and construction of offshore vessels and drilling equipment.