Yacht-making has become a brisk business in the Republic of China in recent years. Many tall and spacious factory buildings have appeared along the northeast coast or near Kaohsiung in Taiwan, and many luxury yachts are always ready to be exported to markets such as the United States, Europe and the Middle East. Annual export value is more than US$60 million, and a rise to US$80 million this year is expected. Yachts comprise the most valuable single unit export item made in Taiwan.

Yacht building started in Taiwan more than 20 years ago, when U.S. soldiers stationed on the island asked fishing boat makers in Taipei to construct craft for them. The Americans had a lot of fun with these wooden yachts. They sold their cars and furniture when they returned to the U.S., but took their boats with them, because they were much cheaper than the American version. When local yacht makers realized the profits that were to be made, a new industry was born.

As exports of wooden yachts rose, a new material, fiber glass, was introduced, and soon replaced wood for the body of the yacht. In 1965, the Ta Chiao (Big Bridge) Bros. Yacht Building Co. introduced the techniques of fiber glass construction, and modern yacht builders with new facilities and large plant were established to replace the small fishing boat manufacturers. The number of yacht builders grew from only five in 1965 to 83 at the end of l980.

Li Kai-yuan, president of the C & L Marine Corp., explained that yacht building in advanced countries is usually done as a sideline, but in Taiwan manufacturers are specialized. After visiting American and European yacht building companies, he discovered that the biggest maker in the world was in Taiwan.

In fiercely competitive international markets, Taiwan-made yachts are in a strong position as a result of rapid economic development. Since l977, Taiwan has replaced Canada as the largest supplier of yachts to the U.S., with annual value reaching more than US$45 million.

At first, when most boats were made of wood, the cheap labor factor gave Taiwan a distinct advantage. When fiber glass was introduced, this factor was reduced. Makers therefore began to specialize in high-quality teak decoration for the interiors and effects, including decks, walls, floors and closets. Installing teak decorations in a limited space calls for skilled craftsmen who have seven or eight years experience. Taiwan's products became world-famous, and sales surged.

Teak decoration produces a warm effect which customers appear to appreciate. While Europeans emphasize elegant styles, Americans prefer a feeling of space.

It takes about two or three months to finish each yacht. Usually, the boats are sold through foreign agents who are also responsible for after-sales service. Some people like to order directly from the makers according to their own plans and designs, and sail the craft back home after it is completed.

Prices of Taiwan-made yachts range between US$50,000 and US$300,000 depending on size, equipment, materials and labor required. Top price is paid for a luxury 60-footer with three suites, a bar and stereo in the living room, refrigerator, microwave oven and washing and drying machines.

Because of their high prices, yachts are often bought on an installment basis, which creates problems when interest rates are raised. Such rate increases imposed by the U.S. have led to a slowdown in yacht sales. Buying yachts, however, can be regarded as an investment, since a well-maintained boat can be sold for 10 or 20 thousand more dollars than was originally paid for it after a few years. Maintaining a yacht, however, becomes more and more expensive during times of inflation. Since Tai-wan relies on the U.S. for 75 percent of its yacht sales, it has been trying to diversify markets to ease an unhealthy over-dependence on one market.

The cost of building a yacht in Europe is about 50 percent higher than in Taiwan, and at one time U.S. buyers used to sell them at double the cost after redecoration. Since then, Taiwan companies have been paying more attention to the European market, and the China External Trade Development Council has set up a promotion center in London to help expand sales. Some makers now export more than half of their products to Europe, and the Middle East has also become a promising market as oil revenues have grown.

Development of new products has also been stressed. In addition to 50-foot normal speed yachts, which have always been the biggest selling items, high speed motor yachts, flat-bottom yachts and motor-sailers are also being produced. Fiber glass fishing boats and work boats have been introduced to meet market demand for boats which are lighter and more maneuverable than steel types.

Yacht production in Taiwan has progressed rapidly in the past 20 years, and is not likely to be affected by competition from other countries during periods of slack demand. One of the problems still existing for builders, however, is the fact that most companies use foreign designs. Working out home-grown designs is therefore seen as being essential to further progress. In addition, materials such as fiber glass, some hardware parts and marine engines have to be imported. Once these problems are solved, Taiwan-made yachts will be in an even stronger position on world markets.

[Picture Caption]

For a pleasant day's sailing or fishing, motorized yachts are popular with older people, while young people prefer sailboats, some of which have auxiliary engines.

1. Yachts nearing completion in the assembly shed. 2. Technicians working on a wooden mold, from which several boat bodies can be made. 3. 4. Taiwan-built yachts with teak interiors are popular with Americans and Europeans.

For a pleasant day's sailing or fishing, motorized yachts are popular with older people, while young people prefer sailboats, some of which have auxiliary engines.

For a pleasant day's sailing or fishing, motorized yachts are popular with older people, while young people prefer sailboats, some of which have auxiliary engines.

For a pleasant day's sailing or fishing, motorized yachts are popular with older people, while young people prefer sailboats, some of which have auxiliary engines.

Yachts nearing completion in the assembly shed.

Technicians working on a wooden mold, from which several boat bodies can be made.

Taiwan-built yachts with teak interiors are popular with Americans and Europeans.

Taiwan-built yachts with teak interiors are popular with Americans and Europeans.