Marine companies win new business from China Boat Show
10 November 2005: Seven months after the China International Boat Show, the New Zealand companies that exhibited there
are confident of winning hundreds of thousands of dollars of new business and have gained a crucial toehold in the fast
growing Chinese marine market.
China’s rapid economic growth, combined with the upcoming 2008 Olympics in Beijing, is fuelling demand for boats and
related marine products. The China International Boat Show, held in Shanghai over four days in April, is becoming one of
the largest boat shows in Asia, and it attracted top class exhibitors from round the world.
The first ever co-ordinated exhibition at the event by six New Zealand marine companies, organised with support from New
Zealand Trade and Enterprise (NZTE), was so successful double the space has already been booked for 2006 with all the
participants firmly committed to returning next year.
“The companies that exhibited at the show were impressed by the potential to do business in China, particularly given
the window of opportunity New Zealand will have when a Free Trade Agreement is signed,” says Kevin McPherson, General
Manager of New Zealand Marine.
NZTE also hosted a networking event at the show where New Zealand’s capability was highlighted and introductions made to
key players in the Chinese industry.
Warwick Yacht Design is a veteran exporter to South East Asia, and has a long standing relationship with a leading
Chinese boat building yard. Director Alan Warwick says networking conducted at the Shanghai event looks set to deliver
an exciting new contract for the company, which will see its designs for an 80 foot and a 100 foot sail boats being
built by an Australian/Chinese joint venture company.
“We had numerous approaches at the show from other boat building yards keen to work with us. Many simply don’t have the
skill level or standards yet to produce designs at our quality level, but the interest shows that New Zealand companies
definitely have a future in China.”
Mr Warwick says the show was an excellent forum for the company to host existing and potential clients, and demonstrate
New Zealand’s marine capability to an international audience.
Auckland’s Maxwell Marine is another pioneer exporter to China and took its world leading anchoring equipment, boat
hatches and high performance rope for sailing boats to the Shanghai show.
Sales Manager, Ron Czerniak, expects Maxwell Marine’s sales to China to approach half a million dollars this year and
says, as a direct result of contacts made at the China International Boat Show, the company has just quoted to supply
thousands of dollars of equipment for a 45-metre superyacht expedition ship being built there.
“The New Zealand marine industry has to see China as a key market for the future. Boat building companies from Taiwan,
North American, and Europe are increasingly using China as a production base and a raft of Chinese companies are moving
into the leisure and recreational boat building market. There is huge demand for hardware, accessories and design
capability, all areas where New Zealand is very strong.”
Like New Zealand, a number of other countries also had their first ever national pavilion at this year’s China
International Boat Show, signaling the growing attention that the international marine industry is placing on the
market.
Auckland’s High Modulus, which specialises in the design of marine composite structures such as yacht hulls, says, as a
result, joining the New Zealand stand at the Shanghai show was an invaluable door opener.
“Having NZTE staff in China working with us was like having our own team members on the ground. By using interpreters on
the stand we conducted successful face to face meetings with potential customers and joint venture partners in China and
other parts of the world.
“To leverage off our success we’ve already exhibited at another marine event in China and will definitely be back at the
Shanghai show in 2006,” says Murray Greenhalgh, Manager Market Development for High Modulus.
Andrew White, NZTE’s Trade Commissioner in Shanghai, says the marine sector in China is poised for significant growth
with a wealth of opportunities for New Zealand companies. However, he says, a lot more research needs to be done in
areas such as understanding the dynamics of the market, identifying the right partners, and putting intellectual
property strategies in place.
“Demand is growing for components and accessories, and there is also demand for technical training across different
areas to improve the skills base in China. As well, there are likely to be opportunities in infrastructure related
business for marina and coastal community developments.
“The competition will be intense, and New Zealand needs to be well positioned to take advantage of opportunities as they
arise,” says Mr White.
ENDS