J. Ray McDermott Signs JV For New Fabrication Facility In China

McDermott International, Inc. has announced that a subsidiary of J. Ray McDermott, S.A. has entered into a joint venture with a subsidiary of state-owned China Shipbuilding Industry Corporation.

The joint venture company, Qingdao McDermott Wuchuan Offshore Engineering Company Ltd., plans to establish a new facility on over 111 acres in Haixiwan, Qingdao, Shandong.

This new facility is anticipated to be strategically located adjacent to two new CSIC shipyards: Qingdao Wuchuan Heavy Industry Co. Ltd. (J. Ray's joint venture partner) and Qingdao Beihai Shipbuilding Heavy Industry Co. Ltd. In this developing area, CSIC has a floating dock and five dry docks capable of accommodating vessels up to 500,000 deadweight tons. McDermott Wuchuan anticipates focusing its business on floating, production, storage, off-loading vessel construction and integration.

"FPSOs represent one of the fastest growing offshore construction segments in our industry today," said Bob Deason, J. Ray's president and CEO. "China already commands a significant share of this market and has developed a proven project track record. Establishing this new joint venture focusing on FPSO’s will add a critical component to J. Ray's comprehensive business strategy."

McDermott Wuchuan's new facility is initially expected to permit annual throughput of up to 33,000 tons, expending approximately six million man-hours, per year. The facility will include structural and pipe shops, blasting and painting facilities, module assembly buildings, covered warehousing and lay down areas.

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