“Orders are coming in every week” – A company based near Turku is encouraging business from Chinese ships

From a shipyard operating near Turku in Littoinen Auramarinesta has quietly become one of the industry’s success stories in China.

According to Auramarine, the Chinese market is currently in high demand thanks to the development of the country’s shipyard industry, and orders are coming in rapidly, as the large global shipping companies have continued their investments despite China’s challenging economic situation.

“The development in shipbuilding has been very stable in China and foreign companies have seen healthy development recently. New orders come in every week,” says the company’s CEO John Bergman.

Old ships for a new blow

Environmental requirements have increased the demand for Auramarine. With emission restrictions, systems are needed for old ships that can switch from heavy fuel oil to low-sulfur fuel oil and back.

The company manufactures exactly these fuel supply systems for the marine and power plant industries.

Auramarine recently commissioned a new factory in Shanghai, where around 58 people work in production, sales and logistics.

The company has been present in China since 2001.

“The expansion of the production capacity became timely. We moved from one location to make the production plant more efficient. In this way, we give customers the opportunity to invest more in green fuels,” says Bergman.

Today, Auramarine’s production is mostly at the factory in Shanghai, where manufacturing was outsourced ten years ago. The company’s head office is located in Littoinen, where there are approximately 60 employees.

Auramarine’s customers in Asia include engine manufacturers, shipyards, shipping companies, ship operators and power plant operators. In addition to China, the company also has representation in Korea, Taiwan, Japan and Singapore.

The company’s customers include several well-known Chinese shipyard companies such as Dalian Shipbuilding Industry Company, Shanghai Waigaoqiao Shipbuilding, Yangzijiang Shipbuilding, COSCO Shipping Heavy Industry and Guangzhou Shipyard International.

The company recently signed a cooperation agreement with a Chinese Yiu Lian Dockyardsin on technology and education cooperation.

Long customer relationships as a pillar

A large number of customers have trusted Auramarine for decades, says Bergman.

“The owner of the ship always makes the purchasing decisions and therefore they must be offered reliability. The shipyard handles the construction side. We have good relations with both and it is important for them to make sure that they get a return on their investment and that the service works, for example, with regard to spare parts,” he says.

Competition for contracts is fierce. According to the company, local suppliers are undercutting prices.

“We don’t make products cheaply, but our customers know that they can trust us. It is important for ship owners that they get what they were promised,” he says.

There are challenges in the shipyard industry, especially in finding skilled labor.

“The shipyard industry has something of an image problem. Attracting a trained workforce is difficult,” says Bergman.

According to Bergman, China does not necessarily automatically guarantee success, but requires one hundred percent commitment.

“In China, you can’t do things half-heartedly, you have to be fully committed to it, both in terms of creating a supply network and potential growth. You can’t just go there to look around a bit, you have to be there right from the start,” he says.