Marine Log

September 28, 2006

Friede & Goldman in China joint venture

Friede & Goldman (F&G) announced today it has signed an agreement to form a joint venture with China Ship Design & Research Center Co., Ltd. (CSDC).

The new joint venture, named Friede Goldman China, Ltd. (FGC), will be based in Dalian, China. CSDC's president, Mr. Zhao Zhanjun, and F&G's president, Mr. Paul Geiger Jr., will serve alternately as Chairman and Vice Chairman of FGC.

F&G says that with China's shipbuilding industry experiencing exponential growth "FGC will be in perfect position to take advantage of the renewed world demand for detailed engineering of newbuild offshore drilling and production units. The joint venture will expand F&G's engineering capabilities by offering to its clients detailed engineering and turnkey projects at very competitive rates."

CSDC's expertise in shipbuilding detail engineering combined with F&G's world renowned rig designs will allow FGC to market newbuild designs as well as other engineering services with better-quality results at below market prices.

F&G and CSDC have worked closely on several projects in the past. The success of these projects formulated the foundation for the joint venture by bringing to light the mutually beneficial and complementary working relationship between the two.

Operating as one company under the joint venture, FGC will offer its clients the most advanced and complete engineering services available in the industry.

Houston-based Friede & Goldman is a world leader in the design of Mobile Offshore Drilling and Production units. It is a unit of Russia's MNP Group.

Beijing-headquartered China Ship Design & Research Center Co., Ltd. is a joint-stock enterprise sponsored by and controlled by China Shipbuilding Industry Corp. (CSIC).