China heavy-duty equipment manufacturer signs biggest-ever deal with Spanish firm
Shanghai Zhenhua Heavy Industry (ZPMC), the world's largest manufacturer of heavy-duty equipment, inked a deal worth 2.2 billion U.S. dollars with Spanish marine oil and gas explorer ADHK for supply of offshore engineering products on Monday.
The transaction, including 10 offshore jack-up drilling platforms, seven land drilling rigs, and two float cranes, was the largest sale contract of this kind to date in the country.
It was also the state-owned company's latest move to step up its momentum in the marine engineering business, said Tuesday's China Daily.
The company's shares resumed trading on Tuesday after a four-day suspension before the massive contract was clinched.
ZPMC's container cranes have a global market share of nearly 78percent. More than 72 percent of the company's total revenue was generated from this sector during 2008.
However, the company posted 18 percent year-on-year decline in net profit during the first quarter of this year due to drastic export slips amid the global downturn.
Analysts projected the company's growth in its mainstay business to reach its ceiling within two to three years, after a compound annual growth rate of 20 percent in yearly sales from 2004 to 2008.
The market for heavy-duty equipment particularly for offshore oil and gas extraction has been emerging as a new profit engine for the company.
