Wartsila forms medium-speed joint venture with CSSC
Wärtsilä says it has signed a joint venture agreement with China State Shipbuilding Corporation (CSSC) for manufacturing medium and large bore medium speed diesel and dual-fuel engines.
The new joint venture company, to be known as CSSC Wärtsilä Engine (Shanghai) Co, will be located in a new factory at Lingang, Shanghai and is expected to have its first engine ready for delivery by the end of 2015. The new company will work together with two existing Wärtsilä joint ventures for medium speed engine production, and by being able to produce and deliver locally, the venture will provide CSSC and other Chinese yards with improved delivery times and pricing over a range of four-stroke Wärtsilä branded engines.
The new company will 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 about €12 million.
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.
“This agreement marks an historic moment for our two companies, and it opens the door to exciting new opportunities. China is today the largest shipbuilding nation on earth, and CSSC is the largest shipbuilding company in China. 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,” said Jaakko Eskola, president, ship power, Wärtsilä Corporation.
Wärtsilä notes that it has been present in China for more than 20 years, through its fully owned subsidiary and long-term licensing agreements. It has established joint ventures for propeller, auxiliary engines and mid-size medium-speed engine production with strong Chinese industrial groups and a joint venture for automation services. Wärtsilä also manufactures thrusters at its fully owned company facilities.
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