Sinopacific signs $1b deal with French firm

NINGBO, Zhejiang - Sinopacific Shipbuilding Group Co Ltd is hoping to achieve leadership in the domestic shipbuilding sector against the backdrop of a sluggish world economy.

Ningbo, Zhejiang-based Sinopacific over the weekend signed a contract worth $1 billion with French offshore oil and gas marine services provider Bourbon Group to build 62 offshore supply vessels over the next few years. The deal is the largest new order for a single Chinese shipbuilder since the global financial crisis broke out in September 2008, dragging down the market performance of Chinese shipbuilders.

Analysts say the deal will further consolidate Sinopacific's market position as the world's largest marine engineering vessel builder, and will provide stimulus for its future development.