Chinese Liaoning Petroleum Machinery Manufacture will build a plant to produce heavy drilling equipment in Bashkortostan

On May 19, the President of Bashkortostan Rustem Khamitov visited Liaoning Petroleum Machinery Manufacture Co., Ltd., a part of the Haicheng Petroleum Machinery Manufacture Corporation in Liaoning Province, China, the press service of the head of the republic informs.

During the visit, a protocol of intent between the Government of Bashkortostan and the Chinese company Liaoning Petroleum Machinery Manufacture was signed. The protocol was signed by Rustem Khamitov and the Chairman of the Board of Directors of Haicheng Petroleum Machinery Manufacture Wang Zhenzhuan.

The protocol assumes further activity on enhancing cooperation in implementation of joint investment projects. In particular, it concerns creating a Russian-Chinese machine-building enterprise for production of heavy drilling equipment in Bashkortostan.

Prior to the signing of the protocol Rustem Khamitov told about industrial development of our republic, its economic potential, recreational opportunities, traditions existing in Bashkortostan, athletic achievements and natural resources.

“Currently we create new businesses and focus on development of nanotechnology, engineering, pharmacy, electronics and innovative petrochemical products. And now we are establishing a centre of gas-phase chemistry of the Russian Federation in our region”, Rustem Khamitov noted.

The head of Bashkortostan said that our republic maintained economic ties with more than one hundred countries. In 2013, the republican turnover with foreign partners totaled 15 billion dollars (92 percent - exports). Moreover, the region is actively attracting investment from abroad. Bashkir- Chinese relations grow in recent years. Trade turnover between Chinese enterprises and republican companies exceeds 600 million dollars per year (80 percent - exports).

“I have no doubt that Haicheng Petroleum Machinery Manufacture will have the most favourable conditions for work in Bashkortostan. Oil industry is very powerful in the Russian Federation. And therefore, it requires an enormous amount of equipment for oil extraction. New fields in Siberia, Eastern Siberia are developed. The earth depths in the European part of Russia and the North are continued to be exploited. The major oil company operating in our republic - Bashneft - is actively growing. Therefore, products manufactured by Haicheng Petroleum Machinery Manufacture will be in demand in the republic and in the country”, Khamitov underlined.

“Cooperation with the Republic of Bashkortostan has its practical value. It will bring economic and social efficiency; will promote economic growth in the Republic of Bashkortostan. New production involves creation of new jobs. Therefore, our cooperation can be truly named as mutually beneficial”, Wang Zhenzhuan said.