Business / Companies

A new skipper at the helm

By Cecily Liu (China Daily) Updated: 2014-02-17 07:23

Employees of Italian luxury yacht maker CRN SpA at work. Provided to China Daily

Chinese owners steer yachting firms into new waters as industry grows

Working with Chinese colleagues after one company has bought another is a valuable experience for both sides even if there are noticeable differences between the two, says Lamberto Tacoli.

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"Our Chinese partners are very smart," says the chairman and CEO of the Italian luxury yacht maker CRN SpA. They are "very respectful, very hard workers" who realize that what the company sells its customers is extreme luxury that you cannot afford unless you are a multibillionaire, he says.

In 2012, China's largest bulldozer maker, Shandong Heavy Industry Group, bought 75 percent of Ferretti Group, CRN's parent company, for 178 million euros ($228 million).

Advice and help from Chinese partners has allowed Ferretti to sell more than 50 yachts in China. Last month CRN signed a letter of intent with a Chinese customer to make a 68-meter yacht that will be the largest CRN has delivered to China and one of the largest yachts in the country.

Shandong Heavy Industry's acquisition of Ferretti is an example of an emerging trend of Chinese firms buying or investing in established Western yacht makers to grab a share in the country's young but rapidly growing yacht market.

Last year Dalian Wanda Group Corp Ltd of China bought a 91.8 percent majority stake in the UK's Sunseeker for 320 million pounds ($495 million).

Also, the Chinese conglomerate Sundiro Holding Co invested in the Italian shipyard Sanlorenzo, aiming to set up a joint venture to make yachts of between 10 meters and 20 meters in the island province of Hainan.

In such deals, the Chinese partners are keen to keep the branding and key production of the yachts Western because these are considered attractive to the Chinese.

Stewart McIntyre, managing director of Sunseeker, says that under Chinese ownership his business will remain the respected British brand it has always been. "We fly the DNA of Sunseeker and the DNA of Sunseeker is British."

Tacoli says the acquisition of Ferretti has not shifted production of yachts to China. Ferretti was founded in 1968 and entered China by opening a sales office in Shanghai in 2006, when China's luxury yacht market barely existed, let alone was known to Western yachtmakers.