The city is sensing a greater need to develop its yacht industry following the handing over of the first yacht made by the Shanghai Double Happiness Group, a renowned manufacturer of sports equipment, to its Swiss buyer Roberto Corti here yesterday.
"I am quite pleased and quite sure my son will like it," Corti said. "I will probably consider buying larger boats from the company."
Lorenzo Renaudo, an Italian yacht broker has ordered six yachts, which will keep the group busy over the next few months.
"Next year, we will build 60-foot yachts and in three to five years, 100-foot megayachts," said Zhou Juan, president of the Shanghai Double Happiness Yacht Company.
"The huge market and high added value are key attractions in the yacht business," Zhou said.
The total international market value of shipbuilding reached US$40 billion in 2000, while that of the yacht industry amounted to US$25 billion, according to Yang Xinfa, secretary-general of the Municipal Shipping Industrial Association. It is expected that sales of yachts worldwide will increase at an annual rate of 6 to 7 percent in the coming years, Yang said.
"The city enjoys a lot of potential in developing its yacht industry because of the cheap labour force and its solid ship building foundation," Yang said.
With the functional transfer of the Huangpu River from industrial use to entertainment, and the treatment of Suzhou Creek, the city has been trying to stimulate domestic demand for pleasure boats, Yang said.
However, to date, there is not a yacht on the waters of Shanghai, unlike in foreign coastal cities. And the little share of the market local producers have gained is not worth mentioning.
With the regrouping of the shipyards and the changes in management, China is now the world's third largest ship builder, with an annual production tonnage of 4 million.
China currently holds a 10 percent share of global ship-making.
A new shipyard with an expected production capacity of 1.8 million tons is under construction in Waigaoqiao, Pudong, which will enhance the country's competitiveness in the field.
"We shall turn some of our focus from building huge tankers to the yacht industry," Yang said. "And we hope the day when yachts sail on clear local waters will come soon."
(China Daily 06/04/2001)
