Maritime business day 10.5.2017 in Espoo_Made in China 2025 Policy: Maritime Equipment and High-Tech Ships

1. MADE IN CHINA 2025
Maritime Equipment and High-Tech Ships
Maritime Business Day
May 10th 2017, Espoo, Finland
Liwei Tan, Senior Advisor

2. Contents
2
• Driving Forces for Made in China 2025
• Key Contents of Made in China 2025
• Targets for Chinese Maritime Industry
• Maritime Equipment and High-Tech Ships
• Challenges and Opportunities for Finnish Companies
May 10th 2017 @ Finpro

3. Driving Forces for Made in China 2025 (1/2)
May 10th 2017 @ Finpro3
World’s factory; Low value add production; Climbing out of the “smile Curve” trough
Increasing competition from re-industrialization in developed countries and low-cost
manufacturing in emerging counties

4. Driving Forces for Made in China 2025 (2/2)
May 10th 2017 @ Finpro4
One-Child Policy leads to unbalanced age structure and demographics problem – with a
rapidly aging and shrinking workforce.
Latecomer to intelligent manufacturing and manufacturing automation
workforce will be
reduced from 764
million in 2012 to
627 million in 2030

5. Contents
5
• Driving Forces for Made in China 2025
• Key Contents of Made in China 2025
• Targets for Chinese Maritime Industry
• Maritime Equipment and High-Tech Ships
• Challenges and Opportunities for Finnish Companies
May 10th 2017 @ Finpro

6. Key Contents of Made in China 2025 (1/3)
• Principles:
– Innovation-driven
– Emphasize quality over quantity
– Green development
– Optimize the industrial structure
– Nurture human talent
• Goals (three-stage)
– By 2025, a member of the world’s most powerful manufacturing nations
– By 2035, at the mid-ranking position
– By 2045/2049, at the leading position
• Five Key Projects
May 10th 2017 @ Finpro6
Manufacturing
Innovation
Centre
Smart
Manufacturing
Strong
Industrial
Bases
Green
Manufacturing
High-end
Equipment
Manufacturing

7. Key Contents of Made in China 2025 (2/3)
May 10th 2017 @ Finpro7
• 10 Strategic Priority Sectors
1. New advanced information technology
2. Automated machine tools & robotics
3. Aerospace and aeronautical
equipment
4. Maritime equipment and high-tech
ships
5. Modern rail transport equipment
6. New-energy vehicles and equipment
7. Power equipment
8. Agricultural equipment
9. New materials
10. Biopharma and advanced medical
products
1
2
4
Made in China 2025

8. Key Contents of Made in China 2025 (3/3)
May 10th 2017 @ Finpro8
China Manufacturing 2025 Key Area Technology Roadmap
Semi-official targets for the percentage of core components and key basic materials
to be domestically manufactured by 2020 and 2025

9. Contents
9
• Driving Forces for Made in China 2025
• Key Contents of Made in China 2025
• Targets for Chinese Maritime Industry
• Maritime Equipment and High-Tech Ships
• Challenges and Opportunities for Finnish Companies
May 10th 2017 @ Finpro

10. Targets for Chinese Maritime Industry
• To raise local content for Offshore Engineering Equipment and High-Tech
Ships to 40% and 60% by 2020; 50% and 80% by 2025 respectively;
• Global market share of independent design and construction to reach 35%
and 40% by 2020 and 40% and 50% by 2025 respectively;
• To build a complete industry standard system of design, assembly
construction, equipment supply and technical service for Offshore
Engineering Equipment and High-Tech Ships by 2025
May 10th 2017 @ Finpro10
• To have more than five Chinese companies as
well-known international manufacturing
enterprises with leading design and
manufacturing technology in some fields

11. Contents
11
• Driving Forces for Made in China 2025
• Key Contents of Made in China 2025
• Targets for Chinese Maritime Industry
• Maritime Equipment and High-Tech Ships
• Challenges and Opportunities for Finnish Companies
May 10th 2017 @ Finpro

12. Maritime Equipment and High-Tech Ships
(1/3)
• Offshore Engineering Equipment
– Oceanic and polar oil and gas exploration, development and production equipment
– Marine space comprehensive three-dimensional observation network
– Renewable energy development equipment
– Deep-sea island reef utilization and security equipment
– Far and deep-sea exploration and inspection equipment, emergency rescue
equipment, saturated diving equipment, remote operated vehicle (ROV), deep
water pipe laying equipment and large depth salvage equipment
– Deepwater semi-submersible drilling platforms and production platforms, floating
LNG production and storage devices and storage re-gasification devices
– Deepwater drilling vessels
– Deepwater survey vessels
May 10th 2017 @ Finpro12

13. Maritime Equipment and High-Tech Ships
(2/3)
• High-Tech Ships
– Super eco-friendly ships: dual-fuel oil tankers, bulk carriers and containers for international
and regional routes
– Polar expedition icebreakers and polar transport ships: polar oil tankers and containers for
different ice requirements
– High-performance law enforcement ships: High-speed, multi-functional law enforcement
vessels, far and deep-sea rescue ships and sewage salvage ships
– Large luxury cruise ships: R&D of overall design, layout, architecture design, interior, structure
and hydrodynamic performance optimization for middle (100K tons) and large (200K tons)
luxury cruise ships
– Large-scale LNG fuel power ships: to achieve independent IPR of design and construction
technology for the main types of ships, local contents reach 70% or more
– Super large LNG carriers; High-tech far sea fishing vessels; Deepwater drilling vessels; Lifting
pipe laying vessels and Offshore support vessels (OSV)
May 10th 2017 @ Finpro13

14. Maritime Equipment and High-Tech Ships
(3/3)
• Key systems, supporting equipment and related core components
– Large-scale low-emission and high-power low-speed engine (diesel and dual fuel engine)
– Ship intelligent monitoring system
– Marine LNG and other gas fuel supply system
– Low-temperature materials for polar ships, the technology of start-up and sealing of hydraulic
components such as pumps, valves and other core components in low-temperature
– New materials and hull structure lightweight design technology
– High-performance energy and energy storage technology
– Far and deep sea information transmission technology
– Ocean test technology for offshore engineering equipment
– Ship type optimized energy saving technology
– Ship propulsion device design technology
– Vibration and noise reduction and comfort technology
May 10th 2017 @ Finpro14

15. Contents
15
• Driving Forces for Made in China 2025
• Key Contents of Made in China 2025
• Targets for Chinese Maritime Industry
• Maritime Equipment and High-Tech Ships
• Challenges and Opportunities for Finnish Companies
May 10th 2017 @ Finpro

16. Challenges and Opportunities (1/2)
• Challenges
– To to increase Chinese companies’ international competitiveness;
– To localize production of components and final products,
– To have Chinese companies move up the value-added chain in production and
innovation networks
– To achieve much greater international brand recognition
– To encourage Chinese company “go abroad” and strengthen investment
– Frontal challenge to advanced manufacturing countries
– Government supports including financial policy, subsidies, government-backed
investment funds and government procurement preference to local Chinese
companies bring challenges for foreign companies.
May 10th 2017 @ Finpro16

17. Challenges and Opportunities (2/2)
• Opportunities
– To align themselves with these listed products in the maritime industry
– To be needed to provide critical components, technology and management for the
plan
– To meet the goal, Chinese companies are eager to cooperate with foreign
companies, meanwhile they have solid finances to invest in foreign companies
– To provide technical support and services
May 10th 2017 @ Finpro17

18. May 10th 2017 @ Finpro18
Thanks! Kiitos!