Fluor COOEC form new fabrication joint venture

Fluor and COOEC form new fabrication joint venture

1:54 PM, 20th August 2015
Fluor and COOEC form new fabrication joint venture
David Seaton, chairman and CEO, Fluor. (File photo)

IRVING, US: Fluor Corporation said that it has agreed with Offshore Oil Engineering Co Ltd (COOEC), a subsidiary of China National Offshore Oil Corporation, to form a new joint venture, COOEC Fluor Heavy Industries Co Ltd (CFHI), through which the two companies will own, operate and manage the Zhuhai fabrication yard in China’s Guangdong province.

As part of the joint venture, Fluor will make two stages of investments: an initial cash investment of $350 million after all regulatory approvals are received, which is targeted for late 2015; and a $139 million investment in the third quarter of 2016. Fluor will hold 49 percent ownership in the joint venture, with COOEC holding 51 percent.

“COOEC Fluor is an important strategic alliance, as it positions Fluor to develop a more powerful presence in the global construction and fabrication market, and enhances our abilities to serve and grow our current client base in Asia-Pacific and around the world,” said Fluor chairman and CEO David Seaton.

The new venture adds complementary strengths for both companies. Fluor brings its history of building the largest and most complex projects around the world. COOEC brings its cost-competitive fabrication capabilities and strong client relationships in Asia-Pacific and worldwide.

COOEC Fluor Heavy Industries provides Fluor with the capability to produce cost-effective, large modules for onshore projects and gives the company access to the long-term strategic capacity to deliver offshore fabrication services for clients globally. The new venture, which is geographically well positioned, increases Fluor’s fabrication presence to four locations around the world.

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