Loss-making China Rongsheng Heavy Industries has completed the acquisition of a 60% stake in an energy firm with operations in Kyrgyzstan.

The Chinese shipbuilder has spent HKD2.18bn ($281.3m) to acquire the stakes in New Continental Oil & Gas, which indirectly operates four Kyrgyzstan oilfields involving the national oil company.

Rongsheng will issue 1.4bn shares to New Continental Oil & Gas, representing 16.04% of the issued share capital of Rongsheng.

Rongsheng had said earlier that the investment into the energy sector is a diversification move by the company due to the relatively adverse market conditions for the shipbuilding industry.

The financially-troubled yard has also suspended its shares trading last month and said it had been notified by a government authority to consider initiating a restructuring.

In the first half of 2014, Rongsheng sank deeper into the red with a loss of RMB3.06bn from RMB1.29bn previously.