The project will feature production facilities capable of processing 70,000 barrels (bbls) of oil and 220,000 bbls of total liquid and will offer 600,000 bbls of heated storage capacity.

The group also announced a project worth approximately US$23 million for the design and construction of a chemical plant in Zhangjiagang, northwest of Shanghai.

Since starting projects in China in the 1970s, the group has undertaken more than 200 projects in the country, including chemicals and polymers, pharmaceuticals, oil and gas and metals. Its wholly owned China branch was officially set up in Beijing in 1995.

"China is a vitally important market for Kvaerner. Whilst we have been here for many years, China still represents one of the most exciting markets for our group," said Helge Lund, president and chief executive officer of the group, during a recent trip to China.

"With China's big input in infrastructure, our company is active in building and civil engineering projects," said John Lindfield, managing director of Kvaerner E&C China, citing as an example the newly implemented Jiangyin bridge across the Yangtze River, the world's fourth longest suspension bridge.

"Our company aims to provide innovative and cost-effective solutions, which perfectly meet the demand of China's infrastructure construction, said Lindfield.

In addition, China's policy of developing the western regions further encourages the group's operations here, Lindfield told Business Weekly, adding that the company has won the project of Shell Exploration (China) Ltd for developing the oil and gas field in Changbei of Shaanxi Province.

To further expand its businesses in the South China Sea, the company is considering setting up an office in Shenzhen in Guangdong Province, in addition to its office in Shanghai.

Meanwhile, the company is seeking partners to set up a joint venture to expand markets in China, according to Lindfield.

Safety record, which is key to a construction service company, is always ensured by Kvaerner during the commitment with its contractors. So far, the company has achieved an accident-free record for safe operation of more than 4 million man-hours.

The Royal Society for the Prevention of Accidents awarded the company the Merit Award for Occupational Safety in 2000.

"We hold various trainings to help all personnel understand that safety is everyone's responsibility involved in construction work," Lindfield said.

The big success of the company is largely attributed to its 130 employees, especially the 127 Chinese staff, said the managing director. "Even in our senior management team, there are six Chinese managers out of the total eight, which is rare for a 100 percent foreign-owned company," he said. "Their knowledge about the local policies and good relationship with the local partners progressively push the company to move forward."

To guarantee all services reach international standards, the company also sends staff to study or work in branches in other countries. The strong support of the group is of great help to the China branch in respect to technology, personnel and finance, said Lindfield.

The Kvaerner Group has total revenues approaching US$6 billion in 2002 and 42,000 permanent staff located in more than 30 countries throughout Europe, Africa, Asia and America.

( May 31, 2002)