Sichuan Honghua Petroleum Equipment Co., Ltd, situated in Guanghan, Deyang, Sichuan, is a high-tech enterprise specializing in petroleum drilling, production, design, manufacturing, equipment assembling and service. The company, since her establishment in 1997, has weathered striding development in the past 10 years of great effort. This company covers an area of 1000mu and has over 3000 employees, able to manufacture 150 sets of petroleum drilling machines, a total value of 6 billion yuan. It is a leading manufacturing enterprise in Sichuan Province and one of the demonstrative high-tech enterprises and China’s largest land petroleum drilling machine manufacturing enterprises. In March, 2008, Honghua Group was main board listed in Hong Kong Stock Exchange （HK0196）as China’s first listed drilling machine manufacturer.

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1. HONG KONG, Feb 1, 2021 - (ACN Newswire) - Honghua Group Limited (Stock Code: 196.HK, 'Honghua' or the 'Company'), a leading onshore oil rig supplier is pleased to announce that the Company has.
2. Honghua America, LLC is located in Houston, TX, United States and is part of the Oil & Gas Field Equipment Manufacturing Industry. Honghua America, LLC has 40 total employees across all of its locations and generates $15.82 million in sales (USD). There are 16 companies in the Honghua America, LLC corporate family.

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This company’s major products covers 1000-12000m land drilling machines, including DBS AC variable frequency digital control electric drilling machines, DC electric drilling machines, mechanical drilling machines, compound drilling machines, drag drilling machines, independent electric rotary drilling machines, direct drive pumps, travel hoisting system, solid control system, electric control system and other products. Most of her products are exported to foreign markets which are distributed in the Americas, Africa, the Middle East, Central Asia, Southeast Asia, Russia and other areas.

This company attaches great importance to technical research and development and has researched and developed continuous tube drilling machines, single drilling machines, 5-cylinder pumps, fracturing pumps, direct drive and top pumps and other new products, which lead the world technical development trend of petroleum drilling machines. In the past few years, this company has submitted 92 patents, of which 23 are inventions, 69 are applications. 33 patents are awarded as new and applicable patents.

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Honghua in Sichuan Province was among China’s top 100 best machinery enterprises in the period 2008-2009. It is also among the top 10 best enterprises since the ranking of China’s petroleum equipment manufacturers for 6 successive years and has been ranking first for many years as China’s petroleum equipment manufacturing enterprises in earning foreign exchange through export. In 2007, this company’s “Honghua” brand was awarded as “China Top Brand” by China Quality Supervision Administration. Many of the company’s products have titles such as “State New Key Products” and “State Torchlight Program Projects”.

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In 2011, this company invested 300 million yuan in technical innovation. This project, aiming at “Creating the Southern Section, Improving the Northern Section for a First-Rate Manufacturing Base”, is to purchase large-scale precision equipment and necessary precision testing equipment, to build new factory buildings, to rebuilt old factory buildings so as to optimize the functions of the southern and northern sections of the company as an integral whole. This company is going all out in optimizing the technical layout to facilitate production and business operation, to realize self-making of key products / component parts, to supply its partner with necessities and to assist other enterprises of the same trade in their harmonious development. This company also attaches importance to environmental protection, to healthcare of her employees, to integral planning and to technical innovation.

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After technical innovation, this company shall be integrated into “The World’s First Unconventional Oil and Gas Resource Equipment Manufacturing Base”, “China’s First-Rate National-Level Petroleum Equipment Test Center”, as a brand

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enterprise of Guanghan City, the first brand of Guanghan City, the first-ratte petroleum equipment industrial park, its production value leaping from 3.6 billion Yuan in 2011 to 12.7 billion Yuan in 2015.

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In the light of market and industrial trends, this company has been aiming at promoting the construction of the three sections of the company, equipment manufacturing, resource developing and engineering service, at realizing the four transitions, industrial transition, technological transition, managerial transition and leadership transition. The three sections include land drilling machine manufacturing upgrading, maritime work equipment research and development, in the section of manufacturing, shale gas development technology and equipment in the section of resource development. This aim of hers is an indication of her development orientation, that is, company development centered on “technical innovation” in the coming 10 years.