China International Marine Containers signed a $129 million strategic cooperation agreement with a state-owned enterprise to shore up its struggling marine engineering operations, the Shenzhen-based company said on Wednesday, reported Caixin.
State-owned investment company Yantai Guofeng Investment Holdingsagreed to invest RMB 835 million ($129 million) in a joint venture with China International Marine Containers. The deal is intended to integrate the container enterprise’s money-losing marine engineering and fishery assets in the Yantai area and form a development platform for deep sea industries, the company said.
The global marine engineering industry is suffering from years of oversupply and sustained weakness in oil prices.