By Angela Chen
Carnival Corp. and Italian cruise shipbuilding company
Fincantieri SpA are exploring the possibility of a joint venture
that would build the first-ever cruise ships to be made in
China.
The memorandum of understanding between the companies comes
after Carnival and China's largest shipyard, the China State
Shipbuilding Corp., signed their own pact in mid-October to
potentially collaborate on a similar joint venture. Both agreements
allow for the possibility of a three-way arrangement.
If realized, Carnival would design the specifications for the
China-built cruise ships, whereas Fincantieri and CSSC would
collaborate on shipbuilding production in China.
China's economic growth and increased consumer spending and
vacation demand put it on pace to eventually overtake the U.S. as
the largest cruise market, according to the Chinese Ministry of
Transport.
Carnival, the world's largest cruise ship operator, considers
China a key market and has been increasing its offerings there. It
is the first global cruise company with four ships homeported in
China, and the company attributed its 34% earnings increase in its
latest quarter to strong performance in Asia.
Carnival, which operates Carnival Cruise Lines as well as the
Princess, Cunard, and Holland America lines, is exploring other
joint venture opportunities, such as port development and talent
development. In the past year, the company has been taking steps to
repair its image after a string of incidents, including the fatal
Costa Concordia shipwreck off Italy in January 2012.
Write to Angela Chen at angela.chen@dowjones.com
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