Korean decline in customers' favour
Several factors play a role in the decline in the Korean marine and offshore industries. But instead of viewing it as a hindrance, Hoyer welcomes the challenge and reinforces its position in Korea. It opens up for competitive alternatives.
The growth curve on the international markets is slowly moving upward according to the World Trade Organisation, which predicts growth of 3.3 percent in 2015. That is just 0.5 percentage points more than in 2014. Meanwhile, the price per barrel of oil, according to the American stock market Nasdaq, has fallen from over USD 90 to under USD 50 in less than a year.
The low growth and oil prices have created a decline that is impacting the number of new ships being built in the marine and offshore industries. The cheap oil prices make it less attractive to invest in new ships and offshore equipment, and that is affecting equipment manufacturers in the industry. It also means greater competition for the few orders there are. The decline can also be felt in Busan, South Korea, where Hoyer has a local sales office.
“No or only very few orders are being placed in the marine and offshore industry. In recent years, South Korea has invested heavily in gaining a stronger foothold in offshore, which is why Korean shipyards are feeling the heavy decline in the sector,” explains Thomas Klausen, CEO for Hoyer Motors Asia.
Hoyer enters new markets
But the decline has not knocked Hoyer Motors off course. On the contrary, they are welcoming the challenge by reinforcing their presence in South Korea. In addition to hiring new staff and moving to larger premises in South Korea’s maritime power centre Busan, they are focusing efforts on strengthening old partnerships and establishing new ones in the country.
“Potential customers which may not have been interested or had time to see the potential for cooperation with Hoyer in the past may now be looking for new partners that can give them a competitive boost in their product area. Therefore, we have to be prepared to maintain our existing customers, but also to work on attracting more and more potential new customers,” says Thomas Klausen.
For that reason, in cooperation with a local partner, Hoyer has also begun focusing on land-based industry in South Korea.
“It is a whole new area that we were not at all focused on before in Korea. Making an impression in this segment has required new Korean testing and approval of our motors. Now that this is done, we are also ready to service the industrial segment on land with Hoyer electric motors,” says Thomas Klausen, adding that sales of industrial motors will only happen through the business partner’s sales organisation.
Fast and correct answers are essential
For customers on the Korean marine market, the decline may be precisely what makes them take another look around for new partners, Thomas Klausen says.
“They are able to evaluate their business partners. Do they have the right supplier for the major components? Are there alternatives that could give them a competitive edge over the growing competition? At Hoyer, we are convinced that we can offer potential new customers a particularly competitive alternative to their current supplier. Our experience has allowed us to adapt our organisation to give customers in the marine and offshore industry optimal customer service. Fast and, not least, correct answers are important. Whether it is when customers are enquiring about delivery times, documentation or prices. Our sales organisation is always ready to help,” says Thomas Klausen.
Facts about Hoyer Asia in 2015
In the spring, Hoyer opened its own test centre in Asia in order to offer a more flexible test and classification process to customers in the marine industry.
Once again, Hoyer was an exhibitor at the Kormarine Expo held 20-23 October in Busan, South Korea.
At Kormarine, Hoyer Motors showed the new Hoyer Marine Brake Motor to Korean customers and partners for the first time.
The next exhibition for Hoyer Asia is Marintec in Shanghai held 1-4 December, which is Asia’s largest and most important maritime event. The event is held every two years.