Mar 30, 2013

Russia and China strike a deal

During the visit of Vice Premier of the People’s Republic of China Wang Yang to the Russian Federation, the founders of «Honghua CIS» Co., Ltd: OJSC «Research and Production Corporation «Uralvagonzavod», OJSC VTB Leasing and Sichuan company Honghua Group Limited signed «Agreement on production of the heavy drilling rigs in the Russian Federation». Within the frame of the signed agreement the parties continue developing a joint Russian-Chinese drilling rig manufacturing and maintenance plant.

The agreement was signed by Oleg Sienko’s, CEO of OJSC «Research and Production Corporation «Uralvagonzavod», Andrei Konoplev, CEO OJSC VTB Leasing and Yuan Hai, Honghua Group Limited Chief Vice President. In accordance to the signed document, the parties agreed to produce 28 heavy echelon rigs at the joint plant from 2013 to 2014.

The planned revenue will exceed 13 billion rubles. Production localization of up to 100% of metal structures and up to 50% of drilling rigs components base in the territory of the Russian Federation is another point of the agreement. In terms of the signed agreement the parties are to arrange the financing of the production, to provide the production facilities, competent engineering staff and support during the certification process.

For information:

OJSC «Research and Production Corporation «Uralvagonzavod» is a Russian corporation that integrates over 30 industrial enterprises, R&D establishments and design engineering bureaus in Russia and Europe. It produces military equipment, road-building machinery and railway vehicles.

OJSC VTB Leasing, established in 2002 is the largest Russian leasing company, that offers a wide range of services throughout the territory of the Russian Federation and abroad. The main activities are large and medium transactions in the railway, aircraft and machinery industries.

Honghua Group Limited — is a Sichuan company that produces petroleum equipment. It was established in 1997. Today it is the largest PRC manufacturer of heavy equipment drilling equipment. It is focused on researching, engineering, production of oil drilling rigs, oil exploration and production. «Honghua CIS» Co., Ltd was established in September 2012 by OJSC VTB Leasing, OJSC «SPC «Uralvagonzavod» and Honghua Group Limited.

The main activity is production of drilling equipment, spare parts and accessories and maintenance services. Production facilities are located at OJSC «Machine building company «Vityaz» (part of «UVZ» corporation) in Ishimbai.