ZPMC completes first offshore drilling platform

Unlike some Chinese maritime engineering companies that build their own hulls and depend on imported parts, ZPMC focuses heavily on research and develops key pieces of equipment itself, according to Chinese analysts.

For Java Star 2, up to 20 percent of the rig parts are homemade, a figure much higher than the domestic average of 5 percent, according to Liu Zhen, deputy head of ZPMC's own marine engineering institute and general manager of the rig project.

The China-made parts lowered the total cost by more than 10 percent, added Liu.

The Chinese marine engineering industry has been developing fast over the past few years, a fact widely regarded as good news because the shipbuilding market has been in recession after global demand started to wither.

As more and more marine equipment manufacturers shift their business from shipbuilding into ocean engineering, ZPMC is expecting to see strong returns from its offshore drilling business.

Throughout 2013, Chinese companies obtained more than $18 billion of marine engineering-related contracts, accounting for 29.5 percent of the global total, up 16 percentage points from 2012, data from China Association of the National Shipbuilding Industry showed.

Hu Keyi, technical director of Jiangnan Shipyard (Group) Co Ltd, said Chinese companies should spare no effort in increasing their research and development abilities and raising their competitiveness in the field, people.com reported.

Founded in 1992, ZPMC holds more than 70 percent of the global port equipment production market. It is now expanding its foothold in other related industries, including steel fabrication and marine engineering.

The company lost money from 2010 to 2012 as a result of rising steel prices and the appreciation of the yuan.

According to its statement for the first half of 2013, ZPMC returned to profit. Its contract value in maritime engineering and large steel structures surged 71.3 percent to $997 million, representing 33.3 percent of its total revenue.

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