New Wärtsilä joint venture in China

21 Dec 2012
Production of low speed engines at another Wärtsilä Chinese joint venture plant – now to be joined by medium speed engine production at Zhuhai

Production of low speed engines at another Wärtsilä Chinese joint venture plant – now to be joined by medium speed engine production at Zhuhai

Wärtsilä and Yuchai Marine Power (YCMP), a subsidiary of Guangxi Yuchai Group, have signed an agreement to establish a 50/50 joint venture for manufacturing medium-speed marine engines in Zhuhai City, China.

The joint venture aims to serve the increasingly dominant Chinese shipbuilding industry, with the focus being on the assembly and testing of Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 engines. Operations are planned to start in 2014. The value of Wärtsilä's investment in the joint venture is about €17 million. The joint venture is subject to approval by the relevant authorities.

According to Wärtsilä, the joint venture with YCMP is a further step in its strategy to continuously strengthen its competitiveness, to capitalise on significant growth opportunities, and increase its focus on the offshore and special segments in China, the world's largest shipbuilding country.

"By forging a strong partnership with Yuchai, China's leading producer and market leader for high-speed diesel engines, we can continue to broaden our customer base and further expand our market share in China. This is an important step for securing our market leadership position for medium-speed engines," said Björn Rosengren, president & CEO of Wärtsilä.

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