Shanghai Zhenhua Heavy Industries Co (ZPMC), the world’s largest maker of cranes and large steel structures, is negotiating the acquisition of a German shipyard－part of its drive to diversify and expand its maritime engineering business. ZPMC aims to buy JJ Sietas Schiffswerft, a Hamburg-based shipyard with a history of more than 300 years, Huang Qingfeng, Vice President of ZPMC, told China Daily. The Chinese company made an offer for the bankrupt European facility because it wants to boost its research and development (R&D) capability for vessel engineering, Huang said. ZPMC’s parent company, China Communication Construction Co, already owns a U.S.-based maritime engineering center－Friede Goldman United, which provides design services and equipment for offshore drilling rigs. A Russian shipyard in St. Petersburg has also submitted a bid for Sietas. ZPMC lost money from 2010 to 2012 as a result of rising steel prices and yuan appreciation. Since its new Chairman, Song Hailiang, arrived in 2012, the company has been trying to diversify its portfolio. According to its 2013 first-half statement, ZPMC returned to profit. Its contract value in maritime engineering and large steel structures surged 71.3% to USD997 million, representing 33.3% of its total revenue. But contracts for port equipment fell 32% to USD1 billion, representing 34.6% of revenue. Zhang Zhongjie, Industry Researcher at Essence Securities Co, said ZPMC’s recent comeback was the result of its non-core business. Maritime engineering is the company’s bright spot, and there’s considerable growth potential in the sector, especially overseas, the China Daily reports.