Umbrella agreement signed between COSCO Shipping and DEME

By Finance

The Belgian dredging, environmental and marine engineering group DEME and COSCO Shipping - the largest shipping company in the world - will work closely on the development of offshore wind energy in China. The umbrella agreement has been signed in the presence of Belgian Prime Minister Charles Michel and the Chinese Premier Li Keqiang. The attendance of both Heads of Government signifies the importance of the cooperation agreement and the Chinese vision concerning the transition to renewable energy.

Umbrella agreement signed between COSCO Shipping and DEME

DEME and COSCO Shipping are both market leaders in their sectors and have found one another in a joint venture active in offshore wind energy in China. The cooperation is in line with the Chinese climate vision and the development of renewable energy, which were recently incorporated in the 13th Five Year Plan (2016-2020) for social and economic development. The Chinese government wishes to significantly increase the installed capacity of offshore wind energy by 2020 and beyond.

As the largest shipping company in the world, COSCO Shipping wishes to enter this new market segment and has found a partner in DEME's subsidiary GeoSea, with its extensive experience in developing, building and maintaining offshore wind farms.

Luc Bertrand, Chairman of DEME: "As a pioneering company, DEME is a global leader in offshore wind energy, offering overall solutions via EPCIM contracts (Engineering, Procurement, Construction, Installation & Maintenance). Thanks to the accumulated know-how and experience with complex infrastructure projects at sea, DEME can support and carry out COSCO Shipping’s offshore wind vision. The cooperation is also in line with the Group's partnering philosophy, in which DEME expands its international activities through sustainable cooperation with local partners. Such combinations have repeatedly proved successful in DEME's dredging and environmental divisions. The joint venture with COSCO Shipping is a win-win for both parties and will contribute to realising the ambitious Chinese climate objectives but creates also perspectives on further development and services in COSCO Shipping’s areas of expertise such as heavy lift transport, shipbuilding, etc ....”

Xu Lirong, Chairman of COSCO Shipping: “The cooperation with DEME is in line with our strategy, and I believe it is going to help fortify our cooperation with customers, extend our business chain, moreover push forward the sustainable and healthy development of renewable energy industry in China. COSCO Shipping Corporation Limited is a world-leading integrated logistics and supply chain service provider, with shipping, integrated logistics and relevant financial services as core businesses, featuring coordinated development of multiple industrial clusters. Focusing on four strategic dimensions, which are “scale growth, profitability, anti-cyclical capability and building a global company”, the Group highlights the “6+1” industrial clusters layout. The “6” is shipping, logistics, finance, equipment manufacturing, shipping services, and social services industrial clusters. The “1” means “Internet Plus” business based on business model innovation. This layout will help facilitate the integration of shipping factors and build a world-class logistics service provider.”

Source: DEME