Sanlorenzo in joint venture with Chinese group
Published: Thursday, 19 September 2013
Sanlorenzo and Sundiro Holdings, a Chinese company listed on the Shenzen Stock Exchange market, have signed an agreement for production and sale in the greater China market of boats between 10 to 20 metres. This will include sales in Hong Kong, Macao and Taiwan. The agreement also allows for the sale of yachts from 22 to 62 metres built at the three Italian Sanlorenzo production sites of La Spezia, Viareggio and Massa Carrara, in the China market.
This joint venture will result in a capital increase of €30 million subscribed by both Sundiro and Sanlorenzo shareholders. Majority shareholding of the company, however, will remain with Massimo Perotti. The agreement maintains both the Italian ownership and production sites in Italy.
Since its launch some 15 years ago, Sundiro Holding has produced 18 million motorcycles under license from Honda. It employs some 4,700 people and has a turnover of around €2 billion.
The agreement lays out a four-stage development process. Firstly, a Sundiro-majority company, under the name Sundiro-Sanlorenzo Yacht Manufacturing Co., will build yachts from 10 to 20 metres in China based on Sanlorenzo designs under the brand Sundiro. This gives Sanlorenzo entry into the market of smaller yachts that is lacking from its current range. This will be no competition to its 22 to 62-metre models built in Italy. The start up of this first phase will take about two years before the new yachts start are launched.
The next step with a Sanlorenzo majority company, under the name Sundiro-Sanlorenzo Yacht International Srl, which will be aimed at distributing these Chinese-built boats to the world market
The third phase will see the creation a Hong Kong-based company called Sanlorenzo Hong Kong that will distribute the Italian-built Sanlorenzo yachts from 22 to 62 metres in the greater China market, through the Sundiro Holding’s organization. The agreement includes the purchase of stock boats from Italy to sell in China.
The final step is a capital increase of €30 million. Perotti’s share of the company will be around 55 percent, so company control and some production will remain in Italy. He will remain as Chairman and Fulvio Dodich will continue as CEO of the company".
With this joint venture, Sanlorenzo enters the growing Chinese market, which is expected to reach 100,000 yachts by 2020 and now enters the 10 to 20-metre yachting business, thereby complimenting its existing range.