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A Visit to the Shipping Market

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2016.07.18

The history of shipbuilding in the Tianjin region dates back to 1875, during the Guangxu era of the Qing Dynasty, when the Dagu Shipyard—the earliest ship repair and construction facility in northern China at the time—was established. After Tianjin was liberated in 1949, the region's shipbuilding industry seized a new opportunity for growth, leading to the successive construction of groundbreaking vessels such as China's first steel-built 250-horsepower ocean trawler in northern China, as well as the country's first 1,200-ton shallow-sea mud-transfer and oil-spill recovery vessel. Over more than 120 years of development and expansion, Tianjin's shipbuilding industry has steadily taken on a fresh, modernized appearance. Today, Tianjin and its surrounding areas have become one of China's major hubs for ship repair and construction—and also serve as a key market for the group company's marine gearboxes in northern China.

To better "cultivate and refine" this key market, the Group Corporation decided in 2008 to independently segment the Tianjin region and its surrounding areas, establishing the Tianjin Office. This move was aimed at actively expanding into this vital area of China's northern shipbuilding industry. By implementing measures such as authorizing distributors, setting up service stations, and directly managing sales through the office’s dedicated customer support team, the company successfully transformed the complex, fragmented landscape of marine gearbox sales in Tianjin—from a chaotic "multi-player battle"—into a dominant market position where its premium-brand gearboxes now firmly lead the industry.

On July 13, 2016, Feng Guang, General Manager of the Group Company, visited Beijing Wind Power customers before heading to Tianjin. There, he conducted field visits to the ship machinery market in Tianjin and the surrounding Hebei region. Accompanied by Mao Shengyuan, Manager of the Ship Machinery Company, and Liang Yongfeng, Manager of the Tianjin Office, General Manager Feng toured shipyards, as well as Tianjin Hangchi Qijin’s dealership and service station. During these visits, he engaged in thorough discussions with shipyard leaders and dealership representatives, gaining a detailed understanding of the current market conditions in Tianjin and the latest developments in the shipbuilding industry.

As the global and domestic economic形势 continues to decline, the shipbuilding industry in Tianjin is also facing significant challenges. Since last year, several shipyards have been grappling with issues such as funding shortages and a lack of orders, putting immense downward pressure on the group company’s marine gearbox market in the Tianjin region. After careful assessment and analysis, General Manager Feng Guang noted that the Tianjin marine gearbox market has reached a critical bottleneck stage. Despite holding a strong market share, he emphasized that both the Ship Machinery Company and the Tianjin office must proceed with utmost caution and dedication, maintaining the respectful mindset of "easy to start, hard to sustain." They should continue to tap into the market’s untapped potential, seizing new opportunities in Tianjin—such as the shift from wooden to steel ships, as well as the increased demand for gearbox replacements during the fishing-boat maintenance season—thereby ensuring the group company firmly retains its vital position in this key marine gearbox market segment in Tianjin.