HONG KONG, June 22, 2022 /PRNewswire/ -- CMIC Ocean En-Tech Holdings Co Ltd ("CMIC" 00206.HK) signed a Strategic Cooperation Agreement ("Strategic Agreement") with a leading Dutch supplier of on- & offshore lifting solutions, KenzFigee. This aligns with CMIC's intention to further expand their business as a reputable supplier of equipment for the renewable energy market in China, such as gangways and installation cranes.
The Strategic Agreement includes the intention to share technology of key highly engineered and in-demand products which are pivotal to the advancement of offshore renewable energy projects. These products provide critical solutions and are presently available only after long delivery lead times and are in short supply for offshore renewable energy projects. The signing of the Strategic Agreement will, not only close the gap to meet the demand in the Chinese market for these products, but also provide both the companies a strong platform to showcase each strengths for such products required to achieve net zero carbon emissions goals especially in China.
Safety and functionality in a wide range of operational environmental factors are key requirements for success of such systems which KenzFigee already has an established track record in supplying to an international clientele. Currently, such technology for the products identified is still in early development stages in China and would require prohibitively long delivery lead times to secure. This has significantly impacted progress of offshore renewable energy projects. The Strategic Agreement brings together two entities with complementing capabilities to adequately addresses these needs.
The picture of the two parties signing the contract
With 25 plus years of experience and a strong track record in the offshore industry, CMIC is leveraging these technologies and experiences to supply equipment, products and services to offshore wind power installations, operations and maintenance projects. With the recent recovery of the Oil & Gas sector, CMIC is well positioned to complement the growth in both renewables as well as in oil and gas, especially to meet the demand within the China Merchant Industry Group which supply various vessel and platforms for both industries.
KenzFigee is a pioneer in the Dutch offshore crane industry founded as early as 1836. It is well reputed with significant experience and industry-leading high-tech design capabilities. KenzFigee provides comprehensive solutions for the worldwide offshore marine renewable energy sectors. KenzFigee has a specialised engineering and service team offering crane and equipment services worldwide, supporting clients from equipment selection to product design, production, assembly, testing, installation, commissioning, as well as after-sales service and maintenance.
"The signing of the Strategic Agreement brings together the strengths of both companies to provide complementary factors of specialised technology, manufacturing capabilities, and project financing to fill an opportune supply gap," said Mr. Jiang Binghua, CEO of CMIC and he added that "It will also effectively support the high growth we will achieve in our renewable energy business. The rich experience KenzFigee brings with its past operations and maintenance services in the North Sea and Southeast Asia will add significant value to the markets in China and the East Asian region."
The CEO of KenzFigee, Mr Maikel Takken also commented "We are excited to work with CMIC through this strategic cooperation agreement and contribute to the rapidly changing market and shift towards Offshore Renewable which brings together a wealth of experience to promote several highly engineered and sophisticated products. We are very much looking forward to bringing this plan to full realization."
The market for global offshore wind power is estimated to exceed 90GW within 5 years. China currently operates nearly half of the world's installed offshore wind power capacity, about 26GW. According to GWEC, in the next five years (2022-2026) China domestic offshore wind power installation will steadily increase and is expected to add 39GW installed. The requirement for offshore wind power remains one of the biggest components of this growth. With this expansion of the offshore wind power market, offshore installation vessel owners have increasingly higher requirements for the adaptability for cost efficient operations and maintenance of vessels.
CMIC Ocean En-tech is a leading technology company providing complete engineering, manufacturing and integrated solutions to customers in both onshore and offshore oil and gas, offshore wind and hydrogen sectors. CMIC is also in the business of investing in energy sectors including the renewable energy sector. CMIC's major shareholder is the China Merchants & Great Wall Ocean Strategy & Technology Fund (L.P.).
KenzFigee is a leading provider in the designing and supplying of hoisting and lifting solutions on many types of installation, both onshore and offshore, with more than forty years of experience. KenzFigee covers a full spectrum of services to support its clients from specification to operation, engineering, manufacturing, assembly, testing, installation, and commissioning, as well as service and maintenance.
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Source: CMIC Related Stocks: HongKong:0206