CHENGDU, China, Nov. 25, 2015 /PRNewswire/ --Honghua Group Ltd ("HH") (Stock Code: 196.HK), a leading global land drilling rig manufacturer, is pleased to announce that, on 25 November 2015 (local time), Honghua Golden Coast Equipment FZE ("Honghua Golden"), a wholly-owned subsidiary of HH, entered into a land drilling rigs sales agreement ("Sales Agreement") in an aggregate amount of approximately US$41.5 million (approximately HK$322 million) with an oil services company from the Middle East.
Mr. Zhang Mi, Chairman of HH commented, "Since HH officially tapped into the Middle East market in 2007, we have built up long-term cooperation relationships with local clients. HH sucessfully obtained this drilling rigs sales agreement from existing clients against the headwind of the global oil and gas industry and competitive market environment, not only reflecting the fact that our products designed for the specific local climate and environment have gained great recognition from clients in the Middle East market, but also showing our strong competitiveness and brand effect under severe market conditions. HH will continue to retain its leading position among the fierce market competition by creating high quality products and a well-developed global network."
About HH (Stock Code: 196.HK)
HH is one of the largest land drilling equipment manufacturers in the world, and is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, and 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, HH'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, the Middle East, and emerging markets including South America, India, Russia, China, and Africa.
Meanwhile, the overall construction of the base located in Qidong County, Jiangsu Province, has progressed well; 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, HH will implement diverse development strategies, and expand to become an 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. Jinny Chen
Tel: (86 28) 6817 6881
Fax: (86 28) 8297 1850
SOURCE Honghua Group Ltd.