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THE SUPERYACHT INDUSTRY IN TAIWAN

Super Yachts Review nº 039

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1. Introduction 2. Jade Yachts Shipbuilding Corp3. Ta Shing4. More info5. Jack Chen

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These days the small island of Taiwan, which the Portuguese called Formosa, is the world’s sixth largest producer of yachts, in terms of footage built, and far and away the leading Asian builder.The growing demand for boats made in Taiwan, and designed for both the European and North American markets, has led manufacturers in this dynamic country, a close neighbour of the colossus China, to make a firm investment in quality and technology in order to take on the future.

According to available studies, in 2006 Taiwan, having produced 4,300 feet and 45 megayachts, was responsible for almost 6% of worldwide production of superyachts, with an average length of 100 feet. This means, according to the Industrial Development Bureau of the Ministry of Economic Affairs, that Taiwan is the world’s fourth most important producer, coming in behind Italy, the US and Holland. It is also expected that this industry will, in the future, continue to prosper with an annual rate of increase of around 15% up to 2010, a figure that is far from exaggerated bearing in mind the levels they have achieved in terms of design and the establishment of a worldwide reputation in terms of the quality of workmanship exhibited, at the present, time by boats manufactured in Taiwan.
Yet to get this far has not been easy. Before the crisis of the 80’s the industrial strength of Taiwan in this segment consisted of almost 200 shipyards, yet only 40 of them managed to survive those difficult years. Taking advantage of the lower prices that they could provide, in comparison with European producers, they then managed to consolidate their offer. In the 90’s some of the survivors moved to mainland China, taking advantage of the reduced labour costs available on the mainland.Yet pretty soon, Taiwanese businessmen in China came up against the investors of Hong Kong and Singapore, who could achieve similar production costs, although not with the mastery and quality achieved by the experienced Taiwanese shipyards. With the competition in terms of costs of their giant neighbour, the Taiwanese shipyards, of which there were about fifty at that time, grouped together to form the TYIA (TaiwanYacht Industries Association), and are now considering progress and the future, no longer in terms of bare costs –while prices in Taiwan are still slightly lower than those of Italy, though not as much as before, and showing a tendency to even out- but rather in terms of investment in design and technology so that, beyond the quality workmanship that their products already enjoy, they can compete in equality of qualitative terms with the European industry, the true benchmark at the present time. With one advantage, Taiwanese shipyards can provide a high level of personalisation, more so than anywhere else in the world, at prices that are practically the same, and this is their calling card, the factor that has allowed them to compete in equality of conditions with European shipyards. During our visit to a dozen shipyards and companies of all types and sizes we clearly saw that the technological level of the yacht industry in Taiwan has nothing to envy Europe or the Americans. The use of new technologies, such as resin infusion technology, is spreading, with almost all of the larger shipyards either extending or studying an extension to their facilities during the coming years, so as to increase their productive capacity. It is also increasingly more frequent to see the signatures of the world’s leading designers appended to their plans, with an enviable connection between industry and the university, while we were also able to confirm the dynamism of the quality control laboratories and the R D departments of the different companies.

HORIZON GROUP
Horizon Yachts Company is the largest builder of fibreglasshulled yachts in Taiwan, with premises of 110,000 square metres, with a workforce of over a thousand and their own marina. The Group is divided into three divisions: the shipyards Vision, Premier Yachts and Horizon; Atech Composites, specialising in composites engineering and providing SCRIMP hulls for the Horizon Group; and finally Q E Interior Mill Works, where models are produced using a five-shaft milling machine, the only one in the whole of Taiwan at the present time, plus the premises where they produce their own furnishings and fittings. For the European market, to which 60% of their exports are directed, they produce their Elegance Yachts, ranging from 70 to 105 feet in length, and distributed by Drettmann.
They work with vacuum infusion for the hull and deck plus infusion/sandwich for the flybridge, using carbon for some of the structures, while their fibreglass installations are the largest in the whole of Asia, with over 200 full time employees. Horizon work with designers from all over the world –the American J.C. Espinosa has been responsible for many of their boats while other designers, such as Tomasso Spadolini, have also worked for them- but can also count on their own team of 12 naval architects. Included in their expansion plans for the future are projects to build boats in aluminium as well as to enter into the Open and Fisher boats sector. At their premises there are constantly 30 units under construction, while the building of 45 to 50 boats, ranging between 53 and 135 feet, are scheduled every year, with delivery deadlines of between 8 months and two years, depending on size. At the time of our visit they were about to launch the first unit of the Premier 130 Series, with two more scheduled for 2008, while at the same time they are also working on a 163footer, and have a 120-footer already on the go, both forming part of the Premier Series.
“We’re not concerned about competition from China over the coming years” -says John Lu, Horizon Group CEO. “Our advantage is not so much the price, although that is also lower than for boats built in Europe, but our flexibility and being able to offer a greater degree of personalisation, at any length, than our Italian competitors can”. The new model is an 88-footer, under the Horizon brand, which will be ready in a year, and will join an extensive range of boats, from 62 to 130 feet in length, with various configurations, depending on the requirements of their different owners. In the Vision Yachts series a 62-footer is also being developed, with delivery expected within the year, to be added to the recently presented Vision 68. With regard to the Premier Shipyard, created in 2005, after the launch of the tri-deck Premier 130 last November, designed by JC Espinosa, they are set to follow it up with two more at the beginning of this year. They are also building a 105-footer, while the project for a 130-footer by the same designer has also been presented.
horizonyachts.com

Shipyard in the port city of Kaohsiung, specialising in the building of super and megayachts with steel hulls and aluminium superstructures, Jade Yachts star ted operating in 2004 on premises of 40,000 square metres and today have two bays, each one 150-metres long and 30-metres wide, as well as a 220-metre long bay set aside solely for aluminium work, the wood and painting workshops, their own cranes and direct access to the sea.The parent company, Jong Shyn Shipbuilding Co., is the largest private shipyard in the whole of Taiwan, with over 40 years of experience in navy work, having built over 240 ships, ranging from 450 to 2,200 tonnes, and currently directed by Memphis Han, a member of the second generation of this shipbuilding family business, originally founded by Han Pi-hsiang. The refitting of the 230-foot exploration ship Caravelle, now a luxury yacht renamed Amadeus, is one of the best known Jade Yachts projects, commissioned by Bernard Arnault, Chairman and Executive Director of the company LVMH Moet Henessy Louis Vouiton, for his daughter.
In 2006 the first unit of the Bandido Series was presented at Dusseldorf, an 86-foot design by J.C. Espinosa, and the first steel-hulled superyacht to be completely built in Taiwan, on this occasion for Drettmann. To date they have already delivered two further units of this exploration yacht series, while four more are presently under construction, in different lengths, ranging from 90 to 110 feet. Nevertheless, their most outstanding project, although still in the design stage, is a 140-foot exploration yacht, the specifications of which are still confidential. All of the vessels produced by Jade Yachts are accredited with DNV (Der Norske Veritas) Certification. Jade Yachts have the capacity to produce two boats a year, built from start to finish at the shipyard, with their sites set on Europe as their main market. Another of their projects is a design by the American J.C. Espinosa, the Jade Jet 90, a high performance aluminium vessel, based on a concept that is far removed from anything the shipyard has built to date, with a top speed of 52 knots, equipped with MTU 1,500 HP engines, plus three KaMeWa waterjets. Trials are currently taking place in a water canal in Germany and delivery is expected at sometime in 2009.
www.jade-yachts.com

TA YANG
Founded in 1973, the Ta Yang shipyard has an excellent international reputation as a builder of the Tayana Series fibreglass cruising yachts, currently ranging from 37 to 72 feet, with central cockpit, deck saloon or pilot house. The shipyard, managed by Peter Chen, has the capacity to build 22 boats a year, 70% of which are exported to the US, 10% to Europe and 5% to Hong Kong. Following the presentation, for the first time in Europe, of two boats at the Southampton Boat Show 2007, the shipyard is considering expansion on the European market as a key to its future development, and to that end they are working with designers of acknowledged international prestige, on the design of their latest models, as well as the best equipment and upper works suppliers while offering, according to Peter Chen, “a vast capacity to adapt each model to the specific needs and tastes of the owner at competitive prices”. Thus, the Tayana 58, presented at Southampton, was designed by Robert H. Perry, with interiors by Peter Bielsjneider, while the 54, currently under construction, which we visited at the shipyard, was created by Bill Dixon, and the design, also new, of the 72 was entrusted to Andrew Winch. Apart from these, the Tayana range consists of a 37-footer, a 42-footer, a 47/48-footer, a 52-footer, a 55/58-footer and a 64/65 footer.
At the time of our visit we had the opportunity to take a look at the 54 DS, designed by Bill Dixon with interiors by Peter Bielsjneider, a 54-footer with a with a contemporary design deck salon, available in two distribution versions. Also under construction were a 58-footer and a 48-footer, with central cockpit, and still at the trial stage, in the shipyard’s pool. All of these vessels are amenable to a high level of customisation, making them semi-custom models, with ABYC (American Boat yacht Council) Cer tification, while the fibre work in some areas is based on resin infusion techniques, and all of the carpentry work is done at the shipyard, which employs an experienced team of craftsmen.
www.tayanaworld.com

Everything about the Tainan shipyard, which celebrates its 30th anniversary this year, exudes experience, craftsmanship quality and a cordial and open reception, all of which is merely a reflection of the confidence that the Ta Shing team, led by Chairman Tim Juan, have in their products. And this is not surprising, if we take into account that, with over half a century of experience and 1,100 boats produced –the first Shing Shang shipyard, dedicated to commercial construction in wood, was founded way back in 1957- at Ta Shing this know-how has been passed on from father to son. In 1960 they started to work with fibre and in 1997 set up the current yard to build boats, many of whose names will be more than familiar to Spanish sailors of all ages:Taswell sailing boats and also the celebrated Masons and Tashibas. After 1991 they started to build the Nordhavn ocean-going motor-yachts, from 62 to 78-feet, and more recently launched the project for a new 56-foot motor yacht, which is due to be launched this summer. Ta Shing, which since 2003 has had two yards and now employs 260 workers, was the first shipyard in Asia to introduce personalised systems for construction and logistics, and also the first to apply mixed diesel-electric propulsion, specifically designed for the Nordhavn 72/76-footers.They laminate both by hand and using infusion and their facilities and processes have ISO 9001 certification. The shipyard’s goal is quality and to that end each model is completely personalised. They also do all their own carpentry work, from choosing the teak trunks to the smallest finishing detail.
www.tashingyachts.com.tw

ARITEX
Aritex, a company with head offices in Kaohsiung, specialising in the manufacture of stainless steel hardware and upper works parts for megayachts, is a clear example of what the dynamic nature of the Taiwanese industry and its capacity for innovation is capable of offering. Founded in 1982 for this specific end, nowadays the company includes among its customers not only Asia’s most prestigious shipyards but also a number of top European companies such as Feadship, one of their leading customers, for whom they make all of the hardware, handrails and guardrails for the Octopus, and for whom they make up most of the stainless steel parts fitted to the units that are produced by their shipyards. From this base they then started to work with other shipyards, such as Lurssen, Royal Van Lent or Royal Huisman, the Australian companies Rivera, Oceanfast and Sensation Yachts, or the US based Trinity. The company then made the leap, launching itself in the international arena at the Fort Lauderdale Boat Show in 1999. Since then they have not ceased to attract new customers and to add new products. Aritex makes top quality stainless steel parts on demand –always 3160- meeting all of the class qualifications demanded by Lloyd’s, BV, DNV, MCA or ABS. Some parts however, such as the Delta anchors for Larence Simpson or Lewmar, are manufactured with an even higher quality of Duplex. The Aritex catalogue appears to be endless, insofar as they can build you just about anything in stainless steel for megayachts, working each individual par t specifically for each boat. They can also take over the running of a given project for a specific owner or shipyard and work jointly with them on both preliminary design and subsequent modifications, until they have been completely integrated.This means that they can reduce costs and be fully adapted to the requirements of each individual customer. This is the procedure followed, for example, in their work with Van Lent or Lürssen. They also have their own laboratory, where they investigate both materials and welding, a field in which, as we discovered, they have managed to achieve a perfect join on both sides, by applying special treatment to the weld surface, which allows for the filling of the whole joint between the welded parts. To their undoubted quality they have also added research and innovation. A sample of the latter is the aluminium foam that they have been developing for use as thermal and acoustic insulation in engine rooms and engine casings, providing immense benefits in terms of weight, thickness and insulating capacity, in comparison with traditionally used materials (foams, lead laminates, etc...) and which will soon be launched on the market, although for the moment the secret is jealously guarded. Even in the case of fire this material, although it will eventually burn at 700 degrees, retards combustion for over 45 minutes more than traditional materials. The thickness of the walls can also be reduced by over 60%, while insulating capacity is considerably increased, in comparison with traditional insulation. It is these factors, quality, innovation and adaptation in all phases of the process, that make up the basic elements explaining the level of confidence that Aritex enjoys among their extensive list of customers.
www.aritex.com.tw

BLUEWATER YACHT BUILDERS
This shipyard, directed by Jack Chen, who also happens to be the Chairman of the Taiwan Yacht Industries Association with almost 40 years of history, having been founded in 1972, is immersed in the same process of growth and the expansion of its original premises as most of the other shipyards that we managed to visit. In the present case they need to do this with some haste because of the need, according to Jack Chen, to deal with the increase in demand and avoid delays in delivery. Bluewater has the space to do this, on the seafront, and the capacity not just for this but also to establish a vast tourism and leisure complex. The units produced by Bluewater bring together the four pillars that define the difference between a yacht built in Taiwan and the rest of the world: quality, craftsmanship, technology and, in particular, an increased level of personalisation for the same price. During our brief visit we had the chance to take a look round an almost finished 65-foot semi-displacement model being built for an American owner, designed by Tom Fexas, and with a speed of 20/24 knots. Based on a luxury cruiser/sports-fishing concept she had a spacious cockpit, extensive interiors and a high level of equipment. Bluewater laminate using female semi-moulds or complete moulds, depending on the order, and they have the capacity to deliver 10 to 12 boats a year. Their current range consists of the 50-foot Sportfish, 65-footers, 70-footers, 75footers and 78-footers, although all of these can be adapted to any requirement in this range of lengths. In fact, during our visit we came across a 75/78-footer and a 60-footer. Among Bluewater’s immediate plans for 2009, as well as the new shipyard, they are also going to build a 92-footer and a 103-footer.
bybyacht@ms69.hinet.net

KHA SHING ENTERPRISE CO
Founded in 1977, Kha Shing is one of Taiwan’s biggest shipyards having built, in 20 years of history, over 1,000 boats. Widely known for the different brands that they build – Monte Fino is their own, although they also work for Trader and Hardgrave- Kha Shing have two facilities, both of which are managed by Howard Gung, the second generation of a family of boat builders, and are capable of building boats up to a maximum hull length of 130 feet at the extremely modern plant that they inaugurated in 2004. As it turns out they have already outgrown the new plant and have drawn up expansion plans that include an extension to these facilities. While one facility works exclusively with moulds and laminates, building and assembly work takes place in a series of different bays arranged around a central square.
The boats, once the engines have been fitted and the wiring installed, are then passed on to a different bay, where the seals and teak joints are fitted and adjustments are made. From there they are taken to an immense covered pool, inside a large bay, where the finishing work is done, and from there to the final stage of retouching and checking prior to delivery.
This means that the finishing work is done on the boats when they are actually in the water, ensuring permanent control of the weight position, ensuring that the boat is in its lines while simultaneously checking correct operation of all of the different systems.The bulkheads are composite and the hulls are of sandwich or monolithic construction, using SCRIMP infusion or monolithic laminates, subject to customer requirements. All of the engineering work is done at the shipyard, along with the carpentry and varnishing. Kha Shing have the capacity to build 15 boats at the same time and also to deliver an average of 15 a year, although this figure tends to vary in function of the lengths concerned, and with deadline that rang from one to two years, depending on length. While they have their own design and naval engineering office they also collaborate with external designers, such as Bill Dixon or Rob Humpreys to whom the shipyard has arrived to an agreement for the restyling of the whole Monte Fino range starting with the 76’.
The company’s own brand, Monte Fino, with lengths ranging from 74 to 122 feet, also features a new 76-footer, designed by Rob Humphreys, of which three are currently in the construction stage, with the first scheduled for delivery next spring. They also build boats for Trader, ranging from 56 to 65 feet, and for Hargrave, from 84 to 125 feet. At the time of our visit they were working flat out on four units of 100 feet, 112 feet, 84 feet and 64 feet, already in the water, plus two 100-footers in the first stages of construction, a 125-footer and a 127-footer.
www.khashing.com

JOHNSON YACHTS
Founded as a family business, this shipyard, also in the south of Taiwan, in Kaoshiung, inaugurated its new facilities in August 2007, responding to a need not only to build more boats, to satisfy a growing demand, but also to build bigger boats, while at the same time celebrating their twentieth anniversary. This shipyard, managed by Andy Huang, today occupies premises of 21,500 square metres, with two factories –in the old one they only work with fibre, while the boats are assembled in the new one– half roofed and employing a workforce of 260 people. Producing between 8 and 10 boats a year and with delivery terms of 13 to 14 months, depending on length, the shipyard’s current capacity allows them to work simultaneously on 8 or 9 different boats. With 50% of production being exported to the United States, where they have a head office, 40% goes to Europe and the rest is split between Australia and New Zealand.
Johnson Yachts, which is represented in Spain by Avantgarde Yachts, in Palma de Mallorca, have worked in association with the British designer Bill Dixon to produce a range of five models –58 feet, 70 feet, 75 feet and 87 feet- a range that has recently been extended with the inclusion of the Johnson 105-footer, one of which was being delivered at the time of our visit, with two more currently in the pipelines, as well as the Johnson 77-footer, which will be presented officially in Spain during the Palma Boat Show, and which we discuss in detail in the news section of this same issue. During the dinner that we had with the Sales Manager, Frank Chyan, we also had the opportunity to hear all about the 125footer project, which is currently in its final design stage, for the production of which they are also planning to construct a new building later this year.
www.taiwanyachts.com/member/johnyach

PRESIDENT YACHTS
Established in 1968, this shipyard run by the active Eddie Yeh is located on modern premises in the Port of Jiangjun and provides an excellent example of the reality of the nautical industry in Taiwan today. Like many others, the enterprising Mr. Yeh informed us of his plans to expand the shipyard, through the extension of its facilities over the next couple of years, in order to meet a growing demand and to hold the new line of high technology megayachts that they are planning to build. At their facilities, which have been awarded ISO 9001 certification, and where they have their own dock, there is a SCRIMP infusion technology composite lamination plant, an assembly plant, a testing pool and the company’s own design office. With a range that currently extends from 40-footers up to 140-footers, a range that will soon be extended to include 150-footers, in their new buildings they will be able to simultaneously build up to eight boats and deliver an average of up to 15 units a month, 75% of which will be exported to their main market in the United States, while the rest will be sent to Europe, mainly to Greece, and Japan.
When we were there they had just delivered the first of a new 107-footer series, which we were able to visit ready for her first run out, and which Eddie Yeh has defined as a small megayacht. In fact, equipped with two 1,825 HP CAT engines and with a top speed of 22.5 knots, a cruising speed of 19, a range of some 800 sea miles, air conditioning, stabilisers, three generators and an onboard desalination unit, there is no doubt that the boat that we visited responds to this concept, both in terms of equipment and accommodation, which as well as a full-beam, grand suite for her skipper on the top deck, also includes two crew cabins, with their own living area. By the time you read these lines the first unit of the new exploration yacht series, consisting of five different models of 55 feet, 77 feet, 88 feet and 99 feet, will already be in the water. Created by Ted Hood this new line is characterised by a layout on three decks, plus flybridge, Portuguese bridge and owner’s suite with private deck, plus a main deck on which you will find the salon, three guest cabins and the galley, reserving the bottom deck for crew, machinery and stowage.
www.presidentyachts.com

JACK CHEN: CHAIRMAN OF THE TAIWAN YACHT INDUSTRY ASSOCIATION
“The big advantage of our shipyards, in comparison with those in Europe, is that for the same price our capacity for personalisation is much higher. Even with the same model, no two boats are the same”.

The Taiwan Yacht Industry Association, TYIA, with over 50 associated shipyards, is undoubtedly the most dynamic in all of Asia. Taiwan has, over the years, accumulated an enormous amount of experience in boat building that, at the present time, has been translated into an immense potential, both from the point of view of the technical qualification of the workforce and also in terms of the infrastructures at their disposal, allowing them to consider growth in productive capacity without the restrictions, either in terms of space or economic, that many companies in the European sector are subject to. However, Taiwanese shipyards did not reach this point without some effort. Following a period of conversion, over the last few decades the most dynamic shipyards have gone from competing with the European industry merely on the basis of price to also being able to present battle in terms of quality and design, catching up with and, in many cases, surpassing their competitors. The accent is no longer simply on production costs, but rather on the implementation of new constructive technologies, quality control and, above all, on versatility and the capacity to adapt to the wishes of each owner.
“In cost terms”, says Mr. Jack Chen, “the prices of the boats built at Taiwanese shipyards are similar to European prices, but European boats are mostly produced in series or semi-series, while the boats built in Taiwan are semi-custom or custom. Boat building in Taiwan has specialised and stands out for this reason. While European or American shipyards can modify 30% of a semi-custom boat, Taiwanese shipyards can change practically everything, in such a way that even when working from the same model no two boats are the same”.

The implementation of quality control standards is another of the goals. “Today all of the TYIA shipyards work with 50footers and up. At these lengths the owners are more concerned with quality than they are with cost, and that is what Taiwan’s boat builders are providing”, claims Mr. Chen. The same thing happens with interiors, a field in which the capacity of Taiwanese craftsmen is beyond all doubt, but which requires innovation and ideas in order to adapt to the European market and compete in equality of conditions. “In this sense” explains Mr. Chen “the TYIA already has a fully operational Centre for Development and Design and, as a result, we will be encouraging internationally acknowledged interior designers to come to Taiwan to train our new creators”. Technology, quality and expansion are the three evident axes that Taiwanese shipyards have to get to grips with. “The US has traditionally been one of the biggest markets for boats built in Taiwan; in fact the Association participates as such in their main Boat Shows, in Miami and this year in Dubai, also in Australia. But there is no doubt that these days Europe is an important market for us, as we can build any kind of boat”. Expansion, however, requires capacity of production and for deliveries be made on time. “The fact is that Taiwanese shipyards are very busy, with full order books for the next two years, and this is why many are extending their production capacity with new plant, and also why we are considering building semi-series boats, given that we can build more boats a year, more quickly, at prices from 10 to 15% lower, and with the same quality standards as the Europeans”. “In the near future”, states Mr. Chen categorically, “the Taiwanese industry must concentrate on semi-series or series boats, and this means that we need to find an international financial entity that will allow us to send the boats to distributors in Europe and continue producing them without having to wait for the boat to be sold to the final user. Our organisation is taking steps in this direction”.

One last aspect, with regard to quality, is guarantee and aftersales service. While European shipyards, above all in Italy, have been placing the accent on this aspect in recent years, in terms of added values to the purchase, the Taiwanese, in order to consolidate their presence in this market will have to consider this question. “The guarantee, a value associated with quality and service, is a major concern for owners, most Taiwanese shipyards do not sell directly but through representatives, and so it is important that their representatives can provide a full range of guarantees. In this sense we are considering the creation of after-sales service centres for Taiwanese shipyards, which will allow them to provide a better service; shipyards must consider setting up service centres”.

1. Introduction 2. Jade Yachts Shipbuilding Corp3. Ta Shing4. More info5. Jack Chen

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