|
Italian luxury yacht-maker Ferretti Group, a world leader in thedesign, construction and sale of luxury watercraft, is lost inchoppy waters. Since 2009, the yacht industry has been in declinewith orders and price tags shrinking as demand dwindles. Financialdifficulties have also hampered Ferretti's business operations,making the company run into heavy indebt, and, as most Europeanbanks are mired in troubles of their own, they are unable to lendsupport to keep the renowned yacht brand afloat. SHIG-Weichai Group, a manufacturer of heavy-duty vehicles and otherauto components in east China's Shandong Province, saw the chanceto buy Ferretti. The acquisition is already under final assessment,marking the first time that a Chinese state-owned enterprise (SOE)become the owner of a luxury product brand. Weichai signed a strategic restructuring agreement with Ferretti inJinan, capital of Shandong, in January. Under the agreement,Weichai will pay 178 million euros ($136.9 million) for the stakeand the Industrial and Commercial Bank of China will pitch inanother 196 million euros ($150.8 million) in loans to Ferretti.With a total investment of 374 million euros ($287.7 million),Weichai will have a 75-percent stake in the Italian company. Founded in 1946, Weichai now has more than 40,000 employeesworldwide, with total sales revenue in 2010 standing at 91.1billion yuan ($14.47 billion). After the deal, Weichai Group willbegin its strategic adjustment. By fully optimizing Ferretti'sresources in the yacht sector, Weichai aims at being a supplier forworld leading luxury yachts. The Ferretti deal demonstrates China's growing interest in luxuryconsumer goods and hi-tech products. Since 2010, Chineseenterprises have also looked to Europe to expand, with a directinvestment in the continent reaching $5.96 billion in 2010, up 101percent year on year. Juicy outlook Although outsiders have doubts on whether Ferretti can regain itsfading glory by utilizing the emerging market in China, Weichai'sBoard Chairman Tan Xuguang remains positive on the foray into theluxury yacht sector. Tan said his company has set the yacht-makingindustry as a strategically important target for the next fiveyears. By the end of 2010, China had registered 1,500 yachts and 8,500yacht berths, including those in construction and those already putinto use, said Liu Cheng, a professor at the University of Scienceand Technology Beijing. Yachts are mainly marketed to higher income groups due to theirhefty price tags. Currently, there are about 10 million Chineseresidents who may become potential buyers of luxury yachts. SoChina will become not only the largest manufacturer but also thelargest consumer of yachts, said Liu. Weichai's first goal after the deal is to turn Ferretti from debtinto profit by fully exploring the emerging market in China.Ferretti agreed to set up a new factory in China and design aseries of luxury yachts especially for Chinese consumers, said Tan. We are high quality suppliers, our products such as China Portable Solar Panel Chargers , Solar Charging Controller Manufacturer for oversee buyer. To know more, please visits Mono Solar Panels.
Related Articles -
China Portable Solar Panel Chargers, Solar Charging Controller Manufacturer,
|
