CHENGDU, China, Nov. 27, 2018 /PRNewswire/ -- Honghua Group Ltd ("Honghua" or the "Group") (Stock Code: 0196.HK), a leading global land drilling rig manufacturer, is pleased to announce that recently, Honghua Golden Coast Equipment FZE ("GCE"), a wholly-owned subsidiary of the Company, and Kuwait Drilling Company ("KDC") officially signed an around US$30 million sales contract for land drilling rigs with certain specifications.
This contract is an additional sales contract between Honghua Golden Coast and KDC for land drilling rigs after 2016. At present, Honghua's number of rigs in the Kuwaiti market has increased to 23 sets. The cooperation reflects that Honghua's products have gained great recognition from clients and the market, which will benefit the Company in expanding market share in Kuwait and consolidating the Group's leading position in the Middle East market.
KDC is one of the largest holding companies in the oil and gas sector in Kuwait. It principally engages in drilling exploration, development and work-over businesses. Honghua began cooperation with KDC in 2008 and since then, the two companies have established long-term mutual trust and cooperation. Honghua has always given KDC strong support in terms of service, technical support and spare parts supply.
Honghua is the only overseas listed company of China Aerospace Science & Industry Corporation ("CASIC"). It is CASIC's main platform for energy equipment development. As one of the leading land drilling equipment manufacturers in the world and the largest land drilling rig exporter in PRC, Honghua is primarily engaged in manufacturing conventional land drilling rigs, digital drilling rigs, accessories of drilling rigs, as well as the 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, Honghua's 80% products have been sold to a large number of famous enterprises all over the world, including major oil-production regions such as North America, Middle East, and emerging markets including South America, India, Russia and Africa. In the future, Honghua and CASIC will have in-depth cooperation in advanced energy equipment manufacturing and oil & gas field services field and achieve synergy in R&D, project execution and market expansion, to become an international leading combining equipment manufacturing provider in oil & gas industry.