Honghua signs deal with Russian company

During President Xi Jinping's visit to Russia, China's Honghua Group signed an agreement worth $400 million for heavy drilling equipment production with two Russian companies on Friday.

According to the agreement, the three companies will produce 28 pieces of heavy drilling equipment by the end of 2014.

All of the production will be conducted locally in Russia.

"The deal will promote further trading between China and Russia and is beneficial for Sichuan-based Chinese companies to expand their businesses in the Russian market," said Zhang Mi, chairman of Honghua. "The cooperation will help Honghua to build its brand in Russia as well."