Italian shipbuilder Fincantieri has signed a co-operation agreement with Chinese shipyard Huarun Dadong Dockyard (HRDD) to jointly conduct ship repair and conversions.
Under the agreement, Fincantieri will leverage their dedicated ship repair and conversion business unit to provide technical expertise in collaboration with HRDD’s shipyard facilities to support the growing Chinese cruise sector and the main foreign cruise companies.
The deal aims to capitalise on both the company’s assets and expertise to develop the technical skills, project management and logistics procedures involved in the maritime sector.
HRDD is strategically located near the new cruise terminal in Shanghai.
Fincantieri recently marked its presence in the Chinese cruise market by establishing a branch office, headquartered in Shanghai, following agreements in 2014, implicating the company’s internationalisation and rooting strategy in this market.
The co-operation agreement will supplement growing demand of the Chinese cruise sector as the Chinese Ministry of Transport (MOT) declares that China should occupy the position of the second largest global cruise market after the US.
According to the MOT, China aims to cater to 4.5m cruise passengers by 2020, which will require an increased fleet of cruise ships.
Earlier this year, Fincantieri signed a series of framework agreements with certain Iranian firms to manufacture new merchant vessels and offshore units both in the field of ship repairs and conversions, as well as refitting activities of existing units.