Ferretti Group to open assembly plant in China

Posted on

Ferretti Group intends to open an assembly plant in China as its new Chinese parent seeks to drive up sales in one of the world’s fastest-growing economies.

Tan Xuguang, chairman of the company and of its majority-owner Shandong Heavy Industry Group-Weichai Group, told reporters in Beijing today that the plant will customize vessels for the local market, according to a Bloomberg News report.

The yachtmaker is considering plans for the facility in Qingdao, Shandong province.

Ferretti plans to boost sales in emerging markets led by China, Brazil and Russia.

On Monday, Xuguang told reporters he was exploring ways to integrate Ferretti’s engineering and branding strengths into the group’s Chinese operations, which are focused on commercial vehicle engines, according to Forbes.com.

Tan said Monday future orders for China could be finished in Qingdao, a port in Shandong, but he emphasized that Ferretti will remain an Italian company, emphasizing that operations will continue from Italy.

The state-owned Shandong Heavy Industry Group could be in a position to benefit from a Chinese trend toward luxury products after this year’s 374 million euro ($299 million) acquisition of Ferretti.

After a debt-to-equity swap, the Chinese company’s Weichai Group owns 75 percent of Ferretti, which ran aground after yacht sales peaked in 2007, Forbes.com reported. Its markets in Europe and North America subsequently went south and Ferretti found itself mired in debt. Now it’s betting on rising wealth in China and other emerging markets to energize the sales of its luxury boats.

The new ownership “will give us unbelievable access to emerging markets such as China, where the potential is the highest in the world,” as well as continuing focus on Europe and the U.S., Ferretti CEO Ferruccio Rossi said in Beijing today, according to Bloomberg News.

The boat-builder, which makes Ferretti, Pershing and Bertram brand yachts, announced in January it will retain its existing management as well as its headquarters and production facilities in Italy. Bertram builds yachts at its facility in Merritt Island, Fla.

Click here for the full report.

Welcome to TradeOnlyToday’s premium content! To continue reading, please register now, for access to 10 free stories per month. Or subscribe, for unlimited access to all TradeOnlyToday content!

Click here to Register ... it's free!

Basic subscription: Registered members get free access to 10 premium content stories each month!

Not a member yet? Click here to Register!

Already a member? Click here to Login!

Subscribe ... for unlimited access!

Individual subscription: $29 for unlimited site access for one year.

Small Business subscription: $140 for unlimited site access for up to 10 members of a company for one year.

Corporate subscription: $300 for unlimited site access for all members of a company for one year.

You may close this dialog after seconds.

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments Policy.

Vote Today

What is the best outcome for the marine industry in the November mid-term elections?

View Results

Loading ... Loading ...

Search Boats for Sale

Length
Year
Price

Login to Trade Only Today

Lost Password