Honghua to invest up to $16m in shale gas exploration

Honghua Group Ltd, China's largest exporter of oil-drilling equipment, plans to invest up to 100 million yuan ($16 million) by the end of the year in a project to explore for shale gas.

The company says the move will allow it to seize opportunities stemming from the fast development of the shale gas industry.

The investment will go to the manufacture of sample equipment and to system tests in both the United States and China.