Fincantieri joins hands with Chinese shipyard for ship repairs

Fincantieri, one of the world’s largest shipbuilding groups, and Huarun Dadong Dockyard (HRDD), one of the largest Chinese shipyards specialized in ship repair and refitting activities, have signed in Shanghai an exclusive cooperation agreement in the field of ship repair and conversions aimed at serving the cruise ships based in China, the Group said in its press release.

The agreement includes the development of technical skills, project management, and logistics procedures. In particular, Fincantieri, through its dedicated Ship Repair and Conversion business unit, will provide, as a worldwide reference operator of the cruise sector, its technical expertise, which, combined with the first class shipyard facilities of HRDD, will offer funDamental support to the emerging Chinese cruise sector and to the main foreign cruise companies which will operate on the local market. HRDD, in fact, is a leading group with modern facilities located at a very strategic geographical position near the new Cruise Terminal of Shanghai. The shipyard which avails of five drydocks, has a rich experience on a broad range of ship types and skilled resources which make it particularly suitable also for the cruise ship sector.

Fincantieri had started an internationalization and rooting strategy in this market with the agreements made in 2014 in the cruise sector for the local market, and subsequently established a branch office in China, headquartered in Shanghai, the Fincantieri (Shanghai) Trading Co. Ltd.

The Chinese Ministry of Transport (MOT) projects China to be the second largest global cruise market after the U.S. in the next several years based on economic growth, increased spending power of Chinese consumers and internal demand in this sector. China could see 4.5 million cruise passengers by 2020, according to the MOT, and exceed 10 million within 20 years. This expansion could require more than 100 passenger ships. The potential collaborations as the ones between Fincantieri and HRDD aim at supporting the MOT’s expansion policies in the cruise sector and the increase of the entire tourism in China, estimated in a double-digit growth each year from 2014.

Between 2013 and 2015 the number of ships deployed in Asia was increased by 10%, reaching 52 units of 26 brands, with an offer of 1,065 cruises. Besides placing latest-generation ships, specifically built for the customers of that area, the main cruise operators, active in this segment, are also pursuing a dedicated brand creation policy and alliances with other local operators.  

Fincantieri is is a leading shipbuilding group dedicated to the construction of cruise ships and large ferries. The Company also specializes in building a wide range of ship types, including frigates, corvettes, patrol vessels and submarines, offshore and mega yachts. Fincantieri has built 70 cruise ships since 1990 (of which 47 from 2002) and other 14 ships are currently being designed or built in the Group's yards. In January 2013 Fincantieri acquired STX OSV (today VARD).