In contrast, in Europe the company's failure to secure a number of large-scale orders has resulted in a decline in its market share for two stroke engines to an estimated 30 per cent.
As far as four-stroke engines are concerned, the company's key market is in Europe and therefore sales are directly related to the competitiveness of European shipyards in world shipbuilding. Since the latter part of 1998 incoming orders at European shipyards have declined drastically as Japan and Korea have re-asserted themselves in the market. This has therefore had a significant negative impact on sales opportunities for large-bore four-stroke engines and resulted in a decline in orders.
In 1998/99, nearly 90 per cent of all orders for large-bore (800-980 mm) medium-speed four-stroke engines came from customers within Europe, of which German customers accounted for around half. Other important markets were Denmark, the Netherlands and Poland. Included in the other 10 per cent of orders were modest levels of orders from Japan and China, relating to ship orders from German and Swedish shipping companies.
An independent survey by the publication Diesel & Gas Turbine Worldwide estimated that for merchant vessels of 100 gt and above, MAN B&W Diesel, SEMT Pielstick and the company's licensees had a market share for four stroke engines of 18 per cent in 1998. In respect of ocean-going vessels of 2,000 gt and upwards the figure is said to rise to 24 per cent. In the market for HFO-fuelled marine auxiliary sets, the figure is said to rise still further to 35 per cent.
The success that Holeby has achieved in the Japanese market has been confined to the biggest ship yards, such as Sumitomo and Mitsubishi. The company has found that smaller and medium sized shipyards tend to conduct business purely in Japanese. Holeby's successes can also be attributed to some shipping lines, notably Evergreen, insisting that their auxiliary engines be used. The company's main competition in Japan is provided by Daihatsu and Yanmar.
Holeby Diesel, together with its licencees, claims a 35 per cent market share for gensets for merchant ships above 10,000 dwt. In Japan the company's market share is thought to be 6 - 7 per cent, whilst in Korea it is around 70 per cent. The company believes that the only market in which it is under-represented is Japan. One of the difficulties in supplying gensets (auxiliary engine, bedplate and generators) is that Japanese customers often want to procure the generator separately. This makes testing difficult as generators have to be moved from Japan to Denmark. In addition, the company has encountered language and cultural barriers in small and medium sized Japanese shipyards.
