Chinese company seeks to build or buy a yacht yard in Europe

Chinese company Balk 1798 Group Limited said it is talks to build a yard in the Netherlands to construct yachts or to buy an existing European yacht yard. “The group currently engages in the procurement and production of yachts in Hainan in China, where labour and material costs are relatively low,” the company said in a statement to the Hong Kong stock market. “However, it is also relying on the sophisticated technologies from the Netherlands for the production of yachts. In order to enhance the efficiency in manufacturing yachts while controlling the costs at a relatively low level, the directors are considering to construct a shipyard in a new harbour known as Maritieme Servicehaven Noordeliike Flevoland (MSNF) in the Netherlands.” Other than constructing a shipyard, the company is also considering the option of acquiring an existing shipyard in Europe to improve the group’s technical capabilities and yacht construction efficiency. The company recently carried out research on the potential shipyard acquisition targets and has set out a several criteria for the suitable yard in Europe. These include the European yard having substantial operating history, being capable of constructing and processing raw materials such as aluminium for the hulls of yachts and being capable of carrying out construction and refitting work for yachts.