Speaking on the sidelines of the DNVGL Bulk Carrier Forum in Hong Kong, Greater China vice-president Torgeir Sterri told Seatrade Maritime News that "especially with the big groups, there is a clear strategy to prepare for when the good times come".
Specifically the major state-owned shipbuilding groups in northern and southern China are building up their capabilities and image as well as a few of the bigger privately owned yards that already have a good reputation and financial strength such as Yangzijiang, he added.
"How many yards in the world are able to invest today?" Sterri asked. He pointed out that the Chinese state-owned yards are the only ones that still have funds to invest for the future, with even the Koreans and Japanese being increasingly cash-strapped now.
They are making investments in areas such as research and development, streamlining and optimising their production processes and improving their equipment manufacturers and suppliers. These investments will be driven by the state, he said and added that they are being done as part of China's latest five-year plan.
Sterri pointed out that key owners are already taking notice of this. For example major product tanker player Stolt-Nielsen has placed orders with Hudong-Zhonghua Shipbuilding while major competitor Odfjell has also followed suit.
While he admitted that there remains an image of poor quality, with some Chinese-built bulkers fetching as much as a 40% discount on the second hand market, Sterri maintained that this is set to change in the months and years ahead. "The main goal for China is to build their brands, change the perception, and it is a strategic move to do so," he concluded.
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