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MAN Diesel opens new office in capital
Germany’s MAN Diesel is the world’s leading provider of large-bore diesel engines for marine and power plant applications. Viet Nam News reporter Viet Thang talks with Stephan Timmermann of MAN Diesel’s executive board responsible for production, turbochargers and PrimeServ on the occasion of its representative office opening in Ha Noi late last week.
What is the MAN Diesel assessment of the after-sales market for diesel engines in Viet Nam?
In the past there were only few Vietnamese shipowners/managers and their fleets consisted mainly of 16-year-old secondhand tonnage on average. The budgets of the owners for technical services and spare parts were very low. However many of the Vietnamese shipowners have now started to either renew their fleets with younger secondhand tonnage or get them built. Many shipowners now operate ships with 35MC and 50MC engines. Instead of just trading locally and within Southeast Asia, a few shipowners trade worldwide and have ships managed by international ship managers. They maintain their vessels according to international standards and go for original spare parts and technical service. There are now nearly 100 ships powered by MAN Diesel. Therefore the after-sales market for diesel engines in Viet Nam is very encouraging for us.
The global crisis has caused impacts on big companies in the world. Why does MAN Diesel choose this time to open an office in Viet Nam?
The expansion of MAN Diesel PrimeServ, our after-sales brand, is part of our long-term company strategy. As part of this strategy, the opening of our office in Viet Nam was planned before the financial crisis. Beyond that, it is especially the after-sales section that provides a certain stability regarding the order intake. This business unit is, compared to our other business areas, not that much affected by cyclical influences. Viet Nam, as a progressing shipbuilding nation, is an important country for us and we believe that, despite the economic downturn, now is the right time to open our office here so we have a presence where customers need our services.
Does MAN Diesel find any difficulty in its business operation and market expansion?
Of course we are not unaffected by the economic crisis. Nevertheless, we have a sizeable order backlog. From 2005 until the end of the first half of 2008, we experienced a boom in the international shipbuilding industry. This means we will be working to capacity for some time. On the other hand, this leads to a further decrease of new orders. In the marine building business we are facing tough times. As a result of the economic crisis, cargo rates dropped and only a few container vessels are being built. We also have had orders cancelled. Thankfully our strategic planning is paying off. As well as our ship engines business, we have added the after-sales business and diesel power plants as a second and third pillar. The situation here looks a lot better and compensates somewhat for the loss from marine building. Despite the difficulties the industry is dealing with, we are sticking to our plan to extend our service network by up to 10 locations a year.
How will MAN Diesel cope with the competition from Japan, South Korea and China?
Japan, South Korea and China are where our most important customers are located.
They are the leading shipbuilding nations in the world. Since every second ship is equipped with an MAN Diesel engine – our two-stroke market share is above 80 per cent – we have positive business relations with Chinese, South Korean or Japanese shipyards and engine builders. Due to our licensing model, we work intensively with most of the big Asian engine builders. Our biggest competitor is the Finland-based Wartsila Corporation; our biggest competitor in Asia – especially in the market for auxiliary engines – is the HHI subsidiary Himsen.
In Viet Nam there are thousands of small fishing boats and trawlers. Do you have a plan to manufacture small diesel engines?
At the moment, the MAN group consists of truck makers, diesel engines and turbines. We will develop diesel engines for marine applications even better than they are today to explore this market.
There is a big opportunity here. We call this the high-speed business.
We are already delivering high-speed engines and ship engines will be important for countries like Viet Nam.
Can you brief us about MAN Diesel PrimeServ’s plan in Viet Nam in the coming year?
MAN Diesel has opened a representative office in Ha Noi. Sales managers for spare parts from Singapore and Denmark visit shipowners in Ha Noi, Hai Phong and HCM City to improve the understanding of their needs and requirements.
Adequate spare parts will be made available in a Singapore warehouse.
One of our group targets is to re-enforce the qualifications of employees and customers.
Therefore we plan to hold a technical seminar in Ha Noi and HCM City to share service experiences of the 2-stroke MC engines with shipowners.
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