Fluor Corporation has agreed to sell its 49% stake in the Zhuhai fabrication yard, a joint‑venture facility operated with China’s Offshore Oil Engineering Co., Ltd. (COOEC), for $122 million (¥859 million). The sale will transfer full ownership of the yard to COOEC, which will use the facility to support future Fluor‑related projects in the region.
The joint venture, established in 2015 as COOEC Fluor Heavy Industries Co. Ltd., had been a key part of Fluor’s offshore fabrication footprint. By exiting the partnership, Fluor is completing its divestiture of a non‑core asset that had been held for more than a decade, allowing the company to streamline its global operations and reduce capital intensity.
Fluor’s management has framed the sale as a strategic move to focus on high‑margin engineering, procurement and construction (EPC) work. The $122 million proceeds will strengthen the company’s cash position and provide flexibility to invest in core EPC projects, which historically deliver higher returns than fabrication‑heavy operations.
The divestiture comes after a challenging quarter for Fluor. In Q3 2025, the company reported revenue of $3.4 billion, a GAAP net loss of $697 million, and an adjusted earnings‑per‑share of $0.68. The sale’s cash inflow represents a modest but meaningful addition to the balance sheet, helping to offset the loss and support the company’s ongoing restructuring efforts.
COOEC will now own the yard outright, enabling it to expand its fabrication capacity and better serve its offshore engineering portfolio. The move also preserves a working relationship with Fluor, as COOEC will continue to support future Fluor opportunities in the region, albeit under a different ownership structure.
Fluor’s CEO, Jim Breuer, noted that the divestiture aligns with the company’s broader strategy to concentrate on core EPC services and improve operational efficiency. He emphasized that the company remains committed to delivering high‑margin projects while maintaining a lean asset base.
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