Fluor has agreed with China National Offshore Oil’s subsidiary Offshore Oil Engineering (COOEC) to form a new joint venture (JV) COOEC Fluor Heavy Industries (CFHI).
The companies will own, operate, and manage the Zhuhai Fabrication Yard in China’s Guangdong province through the JV, which will be 49% owned by Fluor and 51% by COOEC.
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The yard is located near Hong Kong in the Zhuhai Gaolan Port Economic Development Zone and serves fabrication needs in the Asia-Pacific region.
It has the capacity to accommodate fabrication modules weighing more than 50,000t at two million square metres and has a backlog of projects in the Asia-Pacific market.
Fluor chairman and CEO David Seaton said: "COOEC Fluor Heavy Industries is an important strategic alliance, as it positions Fluor to develop a more powerful presence in the global construction and fabrication market, and enhances our abilities to serve and grow our current client base in Asia-Pacific and around the world.
"Our customers are enthusiastic about this venture’s ability to deliver very large cost-efficient structures."
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By GlobalDataCFHI provides Fluor access to the long-term strategic capacity to deliver offshore fabrication services for clients globally.
According to Fluor, the JV increases the company’s fabrication presence to four locations globally.
As part of the JV, the company plans to make an initial cash investment of $350m after obtaining regulatory approvals in 2015 and a $139m investment in the third quarter of 2016.
Image: Zhuhai Skidway and Assembly Yard. Photo: courtesy of Business Wire.
