Washington yacht builder moves operations to China

by www.IBINews.com/Sail-World Cruising on 15 Oct 2007 Is it a sign of what you can expect in the future? Will your next production yacht with a VERY European name come China? Will 'Made in China' be written large across international boat shows?

NorthStar Yachts, which employed 60 workers on a 60,000sq ft facility outside of Kalama, Washington, has shuttered the facility and moved operations to mainland China. The yacht builder built yachts from 80ft-125ft (24.4m-38.1m) LOA at the Kalama yard.

Jerry Clark, the firm's owner and chief operations officer, said the move was for the company's survival. 'The consumer has become more price-driven,' Clark told the Longview Daily News. 'They are willing to accept it being built offshore.'

The company recently announced the closure of the facility and moved its operations to Zhuhai, China's boatbuilding region. Clark told the paper that he made 10 trips to Zhuhai in the past year. He settled on a pre-built spec factory.

Clark said the yachts can be manufactured for about $2 million less in China with the same number of workers. But it will also allow NorthStar to offer more boat options.

Clark said that 9/11 was the start of a downturn for his company. The firm had 120 workers and after the terrorist attacks, it dropped to 60.

Clark said the Chinese have built 'spec factories' in Zhuhai to lure boat manufacturers like NorthStar. Other cities in China have similar pre-built factories to attract specific industries. 'They have dorms on site where the workers live,' he told the paper.

NorthStar will manage its own Chinese operations to maintain quality, Clark said.

'We originally thought we'd contract with another company there to build the boats,' Clark said. 'But this way, we'll be able to control 100 per cent of the quality.'

Clark will spend the majority of the year there, though the firm will still use its Kalama office as its US headquarters. Clark said he hopes NorthStar is operational in China by January 1.

'The boats typically take two years to build, but we'll start making spec boats and finding a buyer while they are under construction,' Clark told the paper. 'People aren't willing to wait anymore.'