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Honghua Group Opens Sales and Maintenance Service Center in the Middle East

DUBAI, UAE, Nov. 16, 2012 /PRNewswire/ -- Honghua Group (HK: 0196), a leading global land drilling rig manufacturer, announced the official opening of its sales and maintenance service center in Dubai's Jebel Ali Free Trade Zone during Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) 2012. The new service center, which has been in operation since October 2011, will provide sales, maintenance, refurbishment, spare parts supply and storage, equipment rental and after-sales service in the Middle East, Africa and Europe. In addition, the new service center will be able to assemble 10 drilling rigs annually.

"Honghua Group's strength is in its ability to offer the highest level of service and rig maintenance to its customers around the world including the Middle East, and that's why our customers consider us a trusted local partner," said Mr. Zhang Mi, CEO and chairman of the board of directors, Honghua Group. "By continually demonstrating service excellence and innovation, we hope to capitalize on the vast opportunities that the Middle East has to offer."

Honghua Golden Coast Equipment Co., Ltd., a wholly-owned subsidiary of Honghua Group will be responsible for the operation and management of the new service center. Nearly 40% of the employees are local nationals.

Since establishing a presence in the Middle East in 2006, the Honghua Group has collaborated with leading drilling companies in the region, and sold 47 sets of various drilling rigs so far. In a high growth region, the Honghua Group today boasts a solid brand reputation in the United Arab Emirates, Kuwait, Yemen, Jordan, Saudi Arabia and other oil producing nations. In 2012, Honghua Group was awarded a USD 300 million contract by National Drilling Company (NDC), one of the largest drilling contractors in the Middle East, to provide seven 9000-meter 3,000 horsepower cluster land drilling rig units, which will be used mainly in the operation of oilfields in the Middle-East.

The Honghua Group has developed many drilling rigs catering to the unique geographical characteristics of the Middle East. These drilling rigs are able to withstand the Gobi Desert's high temperatures and winds; can operate at a depth of less than 122 meters (400 feet) in the Persian Gulf; and possess a hydraulic super single rig that requires only 3-4 people to operate, thus, saving time and drilling costs.

About Honghua Group:

Honghua Group Limited is a large-scale equipment manufacturer and drilling service provider, specializing in research, design, manufacture, and set-assembly of drilling rigs, offshore engineering, and oil & gas exploitation and production equipment. With its land drilling rig manufacturing base in Sichuan province, Honghua Group is the biggest exporter of drilling rigs in China, and one of the largest land drilling rig manufacturers in the world. For more information on Honghua, please visit http://www.hh-gltd.com/ or http://www.hh-america.com/.

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