Poncin Yachts starts up in China

by IBI Magazine on 12 Sep 2006 Poncin Yachts has signed a joint-venture agreement with Chinese Qingdao Yilufa to form a 50/50 owned company, according to French newspaper Les Echos. Its aim is to produce motorboats from the 'White Shark' line, currently manufactured at Vannes by Kelt, which was acquired by the French group back in February.

In an interview with the newspaper's La Rochelle correspondent Jean Roquecave, group managing director Oliver Poncin said: 'The pleasure boat industry is booming in China and it is important that we are represented. However the shipping of a motorboat manufactured in France retailing between €10,000 and €20,000 costs €3,000 to €4,000 excluding import taxes. If manufactured locally, we would be able to meet demand and the asking prices would remain competitive, matching more or less those on the French market.'

His investment remains modest - beside the capital stake in the new company, his contribution is limited to the manufacturing of the moulds and their delivery to China where the company's technicians are already in place ready to provide training for the Chinese employees.

Qingdao Yilufa, located on Qingdao harbour, North China, the location of the 2008 Olympic sailing regatta, employs more than 2,000 staff and is involved in real estate as well as manufacturing marine products. It also owns a plant that manufactures sport trimarans.

Speaking to Les Echos Poncin added: 'We have chosen this partner because of its nautical expertise and because it owns a certified plant. Our launches are top of the range products and it is imperative that the units manufactured in China match the level of quality of their European counterparts.'

With the first units scheduled for delivery in December, Les Echos reported Poncin as saying that the group as a whole generated €50 million in the financial year 2005-2006.

'Our target is to hit €100 million within the next three years, thanks to the growing contribution from Kelt, which produced 120 sailing boats this year and is expected to reach 250 units next year.'