Chinese shipyard CIMC Raffles has teamed up with local authorities in its home city of Yantai to consolidate their activities in the offshore engineering and fish farming industries.

The pair on Wednesday agreed to form a new entity incorporating CIMC Raffles's assets and in which the Yantai government-owned Yantai Guofeng Investment Holding Group will invest 835 million yuan ($130 million) in return for a 16.7% stake.

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The new company, Yantai CIMC Raffles Offshore Technology Group, will continue to focus on offshore engineering, procurement and construction, with its product lines including facilities for offshore oil and gas and renewable energy, such as wind and solar.

Established in 2009, Yantai Guofeng has registered capital of 10 billion yuan and total assets worth 160 billion yuan. It has stakes in more than 20 state-owned companies in Yantai.

Also on Wednesday, two CIMC Raffles-affiliated companies — CIMC Offshore Holdings and CIMC Offshore Engineering Research Institute — signed a deal with three local Yantai-government owned companies to form Yantai Marine Protein Group, a joint venture that will focus on fish farming.

The trio of government-owned entities are Yantai Guofeng Investment Holding Group, Yantai Yeda Economic Development Group and Yantai Changdao Tourism Group.

Gao Xiang, president of CIMC Raffles' parent company China International Marine Containers (CIMC), said that the new entity is committed to building Yantai into an international hub for offshore engineering, which will help provide solutions to achieve China’s targets of a carbon emissions peak in 2030 and carbon neutrality by 2060.

CIMC Raffles is one of the most versatile yards in China, with products stretching from different kinds of rigs to floating production, storage and offloading vessels to accommodation barges and floating production units.

It also has product lines for offshore renewable energy projects covering wind installation and service vessel and floating turbines, as well as fish farms, wind-related hydrogen generators, carbon dioxide transportation vessels, seawater desalination units and offshore photovoltaic systems.