Wärtsilä medium speed engine joint venture established in China

30 Jun 2011

Wärtsilä and Jiangsu CuiXing Marine Offshore Engineering have agreed to establish a joint venture for manufacturing Wärtsilä 26 and Wärtsilä 32 medium-speed marine engines in China.

The two companies have signed the agreement, which is subject to approval by the relevant authorities, with Wärtsilä investing €16 million for a 49% share, the other 51% being held by Jiangsu CuiXing's. The joint venture's production facilities in the Rugao city of Nantong, Jiangsu province in Eastern China, will focus on engine assembly and testing. Operations are planned to start in early 2013.

Wartsila claims a leading position in the Chinese engine market, numbering the leading Chinese shipowners among its customers. The company has had a presence in China for more than 20 years, through its fully owned subsidiary and long-term licensing agreements. It has established joint ventures for propeller and genset production and automation services. It manufactures thrusters at its own Chinese facilities, and low-speed engines are produced by seven licencees and by a joint venture company. There are seven service and maintenance locations in China.

"This joint venture is a major step in our strategy to broaden our presence and production close to our marine customers in China, the largest shipbuilding nation in the world. China has notably increased its market share in shipbuilding during recent years, and today has more than 40% of the total global vessel order book. Through this joint venture, we will further improve our leading global position in the marine market," said Ole Johansson, president & CEO of Wärtsilä Corporation at the signing ceremony.

"This joint venture will enable Wärtsilä to offer competitive products to its customers in the Chinese marine market. Wärtsilä expects to significantly increase its market share of medium-speed engines. Our objective is to become one of the leading medium-speed engine manufacturers in China," says John Zhu, president, Wärtsilä in China.

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