Fincantieri chief executive Giuseppe Bono says the European shipbuilding giant is entering China to monitor as first mover what it regards as a strategic market with high potential.
The move is also designed to head off any of its European competitors trying to gain a leading position in China, Bono told TradeWinds.
Fincantieri and China State Shipbuilding Corp (CSSC) have established a joint venture to build the first cruiseships in China for the local market, as well as conducting research and development projects for passengerships and offshore.
In August, the Italian and Chinese yard groups announced a deal that would possibly extend their cooperation to embrace other areas.
Bono said the rationale behind extending cooperation is the potential for Fincantieri to assist its Italian suppliers, as well as other small and medium-sized Italian companies, in making inroads into China.
One reason for European shipyards’ grip on the cruiseship market is their long-established network of local suppliers.
Fincantieri signed an agreement last year with US cruise operator Carnival Corp for CSSC-owned Shanghai Waigaoqiao Shipbuilding to construct two cruiseships costing $1.5bn, with four options.
Carnival is a major customer of Fincantieri’s European yards, with newbuildings on order for subsidiaries Holland America Line, Costa Asia, Princess Cruises, Cunard Line and Carnival Cruise Line. And it is among international players deploying ships in China, as well as creating dedicated brands and developing partnerships with local tour operators.
Carnival chief executive Arnold Donald told TradeWinds’ quarterly magazine TW+ in September that the Chinese market could be as large as the entire cruise industry is today, and eventually the biggest in terms of home-porting ships.
Meanwhile, Bono said the pending merger of Fincantieri with STX France, the former Chantiers de l’Atlantique, is a perfect match of their cruise activities and products.
It will generate “value not only for the shareholders but also the employees and respective subcontractor networks”, he said.
Closing the deal depends on approval by antitrust authorities. A decision is expected by the end of the year, Bono added.
Fincantieri is acquiring 50% of the share capital of STX France but will in effect take control because 1% will also be loaned to the shipbuilder.
