Ren Le Tian took over the reins at Yangzijiang Shipbuilding at a challenging point. The chief executive became the shipyard’s executive director and chairman in April when his father, Ren Yuanlin, stepped down from the posts.
The impact of trade disputes and the Covid-19 pandemic crashed hopes of a revival in the shipbuilding market that yards round the world held at the end of last year. Yangzijiang was among the optimists.
This story is one of 30 profiles in a special edition of our TW+ magazine.
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TradeWinds reporters have profiled 30 personalities who have shown traits that we think mean they will influence the directions the shipping industry takes, maybe not quite as far forward as the next 30 years, but certainly over the next decade.
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A mere 312 vessels of 19.1m dwt and 6.6m cgt were contracted between January and July 2020, a decline of 60% year on year on an annualised basis in cgt terms, according to Clarkson’s World Shipyard Monitor. It was the lowest volume in 25 years.
Yangzijiang has bagged 23 of those newbuildings, worth $714m, but that is only 35% of the $2bn target it had set for 2020.
Shipbuilding players say Ren Le Tian has uphill battles ahead as the shipbuilding market is forecast to remain weak for the next two years.
The challenge will be amplified by demand for new containerships and bulkers — the ship types Yangzijiang is best known for — being weaker than for tankers.
Despite the difficult market, Ren Yuanlin has shown faith in his son by leaving him to lead the Jiangsu shipyard.
Ren Le Tian landed the head role at Yangzijiang not just because he was the only child of the chairman. His appointment was approved by the yard ‘s board of directors and committee.
Ren Le Tian adopts a modern management style. He allows his managers to run some of the projects by themselves and leaves them to make decisions
Shipbuilding player
Holding a master's degree from London South Bank University, Ren Le Tian joined Yangzijiang in 2006. He then went through a nine-year job rotation scheme that allowed him to experience different roles.
First he was a shipyard worker; then he was the company’s translator for a while. He was also given the opportunity to lead the yard’s project management team and was a workshop director.
Ren Le Tian has “big shoes to fill”, as his father has “done a remarkable job in building up Yangzijiang Shipbuilding”, says one shipbuilding player, echoing comments by others.
The senior Ren transformed the former state-owned shipyard that was building small boxships of less than 500 teu into China’s largest privately owned shipbuilding company. It is now capable of building mega-size containerships, VLOCs and large tankers.
Ren Yuanlin was also behind a listing on the Singapore Exchange in 2007 that raised SGD 1.084bn ($794m). It is one of the two largest shipbuilding groups on the exchange (the other is Keppel Corp).
“Ren Yuanlin was involved in all decisions made in Yangzijiang. He is known as a thrifty man as he managed the shipyard like a family-owned business,” a shipbuilding player says. “He went into every detail of the yard’s activities.
“But Ren Le Tian is a little different from his father. He adopts a modern management style. He allows his managers to run some of the projects by themselves and leaves them to make decisions. The open management style leaves time for Ren Le Tian to look at bigger projects and major issues that the company faces.”
“More time needs to be given to Ren Le Tian,” another shipbuilding player comments. “Among the new generation of leaders at Chinese shipyards, he is one of the more promising.”
Despite its low order volume this year, Singapore’s UOB Kay Hian has confidence in the yard. The investment bank recently dropped Keppel from its Alpha Picks portfolio and replaced it with Yangzijiang, because it regarded its contracting record this year as better than other shipbuilders.
“We replace it [Keppel] with Yangzijiang as we believe that its decent order wins this year totalling $714m to date, higher than both Keppel and Sembcorp Marine combined, should continue in the near to medium term,” says UOB Kay Hian.
Yangzijiang looks poised to recover and maintain its position as one of China’s strongest private shipbuilders under its new leadership.
