First vessel contracts for Chinese engine factory

09 Jan 2017
The new factory aims to help China's shipping industry move into the age of LNG fuel

The new factory aims to help China's shipping industry move into the age of LNG fuel

CSSC Wärtsilä Engine Co Ltd (CWEC), the joint venture formed between Wärtsilä and China State Shipbuilding Corporation (CSSC), has opened its new Shanghai production facility and announced its first vessel contracts.

The new 20,000 m2 production plant is the first in China capable of locally producing large-bore, medium speed diesel and dual-fuel (DF) engines. The plant will also manufacture medium-bore, medium speed diesel and DF engines.

"Being close to our customers in order to serve them better is central to Wärtsilä's global strategy. Together, we are supporting China's shipping industry's move into the age of LNG fuel," said Wärtsilä's President & CEO, Jaakko Eskola at the opening ceremony.

Wärtsilä 26, Wärtsilä 32, Wärtsilä 34DF, Wärtsilä 46F and Wärtsilä 46DF engines will all be produced at the factory, which has a planned production capacity of 180 engines per year.

CWEC has already booked orders for more than 70 engines and is focused on the cruise, ferry, LNG carrier, offshore, special vessel, and large container ship markets, all strategic growth markets for the Chinese shipbuilding sector.

Three separate agreements were signed during the opening ceremony. The first was a three party strategic cooperation agreement between CWEC, Wärtsilä, and Hudong-Zhonghua Shipbuilding Group, a subsidiary of CSSC. The three companies will work more closely together on new build vessel project opportunities for engines and other marine equipment.

The other agreements signed were Letters of Intent with ENN (Zhoushan) LNG Co (ENN) and Ningbo Xinle Shipbuilding Group (Xinle). The LOI with ENN is for the supply of Wärtsilä 34DF dual-fuel main engines for an 8000 m3 LNG bunkering vessel with an option for a second vessel. This represents a landmark, first such project in China for international shipping purposes.

Xinle's LOI is for Wärtsilä 34DF dual-fuel engines for two 7500 DWT cement vessels.

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