- China is fast becoming the world’s major ship building nation, and for TTS Hua Hai Ships Equipment this has entailed a monumental increase in the demand for hatch covers and RoRo equipment.
Since the start of the year, the order backlog has increased by a whole NOK 345 million to NOK 2 375 million, says Bjørn Andersson, Chairman of the Board of TTS Hua Hai.
TTS Hua Hai in Shanghai, celebrating its ten year anniversary on 10 June, has been built up on a joint venture basis by TTS Marine and the Chinese state-owned company China State Shipbuilding Corporation (CSSC). Equality in the ownership has contributed to a successful collaboration and an extremely positive growth in results. – TTS has contributed with technological expertise, while CSSC has a strong marketing force and an extensive network in relation to shipyards all over China. This combination has proven extremely useful, says Andersson. The 10-year jubilee will be celebrated with a large banquet in Shanghai, which will include invited customers as well as representatives from the Norwegian, Swedish and Chinese governments.
Small scale beginning
For TTS Marine, the road to China went through the acquisition of the Dry Cargo Handling division of Hamworthy KSE in 2001. For TTS, the acquisition entailed a 50 percent ownership interest in the joint venture company now known as TTS Hua Hai Ships Equipment in Shanghai. – At the time, this was a small and insignificant company, but it gave us access to a market which we believed would rapidly develop, says Johannes D. Neteland, President and CEO of TTS Marine.
When the recovery of the international shipping market started in 2003, China was prepared to offer the rest of Asia and Europe competition. The aim was to become a leading shipbuilding nation on a global basis by 2015, but this goal will be achieved already by 2010. At this point, more than 1 000 vessels of a size exceeding 5 000 tons will be delivered from Chinese shipyards. Of a total of 6 900 vessels which have been contracted to shipyards in Asia, 3 300 will be built in China.
80 employees with an emphasis on engineering skills
TTS and CSSC have built up TTS Hua Hai to a company with 80 employees. The activities are focused on engineering and sale of hatch covers and RoRo equipment to shipyards in China, and within this niche the company has a market share of over 60 percent. Turnover for 2007 was NOK 380 million and the company’s earnings before depreciation were NOK 29 million. During 2008, a considerable growth in turnover is expected. The order backlog at the start of 2008 was NOK 2 030, and by the end of May it had increased to NOK 2 375 million. Madame He Pu has been Managing Director of TTS Hua Hai since its beginning in 1998. In 2005, Bjørn Andersson was appointed Chairman of the Board. He was engaged on the strength of more than 30 years’ experience of industrial development in China and other Asian countries.
Securing steel deliveries
Based on the strong growth of TTS Hua Hai Ships Equipment and a greater complexity of deliveries, the need for improved control of sub-deliveries has become greater with regard to both volume and quality. Accordingly, TTS Hua Hai Ships Equipment has invested in 40 percent of the shares in a new company in Nantong that will produce steel structures. The company, known as Jiangnan TTS Marine Equipment, has a production capacity of 30 000 tons, which is expected to be doubled by 2010. Madame He Pu, Managing Director of TTS Hua Hai, is Chairman of the Board in the company.
Same model in Dalian
The positive experiences from the collaboration in TTS Hua Hai Ships Equipment lead TTS three yeas ago to enter into an agreement for 50 percent joint venture with the Chinese state-owned shipbuilding group Dalian Shipbuilding Industry Corporation (DSIC) for engineering, production and sale of ships cranes to shipyards in China. TTS Bohai Machinery has been established in modern premises in Dalian and had achieved a market share of about 40 percent. TTS furthermore has a fully owned crane company in Shanghai, TTS Marine Shanghai, which focuses on deliveries to Asian shipyards outside of China and to shipyards in Europe. Through ownership in the manufacturing company TTS Keyon Marine Equipment, TTS has secured access to steel constructions of 25 000 tons. This is primarily for export purposes.
- In total, more than 600 people in China are employed in operations in which TTS Marine holds ownership interest and, next after Norway, China is the country in which we have the greatest number of employees. The history of TTS Hua Hai Ships Equipment illustrates what may be achieved through collaboration based on hard work and respect for each other’s uniqueness. We perceive the Chinese as friendly and extremely qualified, and we feel that together we are in an excellent position to increase the creation of value over the years to come, emphasises Johannes D. Neteland, President and CEO of TTS Marine.
Contact:
Bjørn Andersson, Chairman of TTS Hua Hai Ships Equipment
Tel.: +86 135 041 161 99
Johannes D. Neteland, President & CEO TTS Marine ASA
Tel.: + 47 918 46 906