Advanced Manufacturing Fund (AMF) Invested in CIMC Offshore

On December 7, 2016, AMF entered into a capital increase agreement with CIMC Offshore Holdings Limited (CIMC Offshore), under which it intended to invest RMB 1 billion in the latter.

Jointly launched by NDRC, Ministry of Finance and MIIT and Central Finance Funds on June 8, 2016, AMF absorbs social capital and investment and operates in a market-based and flexible way. It focuses on investing in advanced manufacturing industry indicated in the plan Made in China 2025, aiming to accelerate the fostering of high-end manufacturing industry, promote the supply-side reform and develop the economy. It has raised RMB 20 billion in the first stage, of which RMB 6 billion came from Central Finance Funds; it was independently managed by the State Development & Investment Corporation in accordance with the market-oriented principle. CIMC Offshore became its first investment in offshore engineering equipment enterprises.

CIMC Offshore is professional marine engineering enterprise dedicated to the manufacturing of high-end offshore engineering equipment. It has delivered 10 deepwater semisubmersible platforms and 11 jack-up drilling rigs that are operating in main marine oil and gas producing areas, such as North Sea, Brazil, west Africa, Persian Gulf, Gulf of Mexico, Caspain Sea, South China Sea, etc. The deepwater semisubmersible drilling platforms under construction in CIMC Offshore make up 25% of global market share. As one of the first seven enterprises in the “White List of Offshore Engineering Enterprises” approved by the MIIT, CIMC is now leading the national key project of “the 7th generation of ultra-deepwater drilling platform”; it independently designs the world’s state-of-the-art ultra-deepwater drilling platform, participates in the establishment of industry standards for the latest generation of ultra-deepwater platform and realizes the goal of China making core equipment independently; meanwhile, it co-establishes the “National Engineering Laboratory of Offshore Engineering Assembly, R&D and Design”, takes charge of the construction of offshore engineering big data lab and improves the intelligentization of offshore engineering design, construction and full-life-cycle services.

In the face of severe challenges in global offshore engineering equipment, the industry is undergoing in-depth adjustment coupled with a series of major M&A and restructuring operations as well as new technological surge in the world. It is China’s national strategy to become a strong maritime power, and offshore engineering is one of the top ten industries emphasized in the plan Made in China 2025 in the next ten years, so AMF’s investment in CIMC Offshore represents the paradigm of following market-oriented mechanism and national planning, guiding the industry leader to access international industry opportunity and lead industrial upgrading.