Wärtsilä and China State Shipbuilding Corporation (CSSC) signed an agreement to establish a joint venture for manufacturing medium and large bore medium speed diesel and dual-fuel engines.
The CSSC Wärtsilä Engine (Shanghai) Co. Ltd factory will be located at Lingang, Shanghai and is expected to have its first engine ready for delivery by the end of 2015. The company will in particular target the growing offshore and LNG markets, as well as the market for very large container vessels. The Wärtsilä share of the joint venture is 49% and the size of Wärtsilä's equity investment is approximately US$16 million (EUR 12 million).
The new joint venture company, CSSC Wärtsilä Engine, together with two other existing Wärtsilä joint ventures for medium speed engine production, will now be able to offer the most complete portfolio of Wärtsilä branded medium speed engines in China. It will also be the first China-based company able to manufacture locally large bore medium speed diesel and dual-fuel engines. By being able to produce and deliver locally, the new joint venture will provide CSSC Group and other Chinese yards with closer access to the Wärtsilä range of engines with the benefits of faster delivery times and competitive pricing.
"China is today the largest shipbuilding nation on earth, and CSSC is the largest shipbuilding company in China,” said Jaakko Eskola, Wärtsilä senior executive vice president & president, ship power. “Wärtsilä offers the marine industry's broadest scope of products, solutions and services, and through this joint venture our two companies can deliver leading edge engine technology that can improve efficiencies and lower operating costs for owners and operators everywhere."
"This investment demonstrates Wärtsilä's commitment to supply competitive engine products to its customers in China,” said James Han, Wärtsilä China president. “Furthermore, it is fully aligned with the central government of China's 12th Five-Year Plan to significantly increase environmental efficiency and the locally produced content of marine equipment."
When in full production, the company will manufacture Wärtsilä 26 engines in V-configuration, Wärtsilä 32 main and auxiliary engines, Wärtsilä 46 engines and the Wärtsilä 34DF and Wärtsilä 46DF dual-fuel engines. With LNG becoming increasingly popular as a marine fuel and dual-fuel capability being of increasing importance for both economic and environmental reasons, Wärtsilä's industry leading dual-fuel offering is a major consideration for Chinese yards.
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