Wartsila to expand CPP production in China

03 Oct 2010

Wartsila signed an agreement with Zhenjiang CME, a subsidiary of China State Shipbuilding Corporation (CSSC), to manufacture controllable pitch propellers (CP propellers) at the two companies’ joint venture unit, Wartsila CME Zhenjiang Propeller Co Ltd, located in Zhenjiang.

The inauguration of the new factory and the first deliveries are planned for the second quarter 2011. Wartsila CME Zhenjiang Propeller will invest EUR 12 million in the new facility for manufacturing CP propellers and includes the construction of a new 8,000m2 factory at the existing FP propellers plant.

Wartsila CME Zhenjiang Propeller was set up in 2004 between Wartsila, with a 55% share, and Zhenjiang CME Ltd with 45%. The joint venture has grown to the point that it is now the biggest manufacturer and supplier of FP propellers in China, and one of the biggest in the world.

The majority of the equipment needed will be relocated from the factory in Drunen, the Netherlands, where Wartsila has announced that production activities will be ended by the end of this year. Wartsila will continue to design and produce some CP propellers in Europe, mostly for specific projects. However, the majority of the products will be manufactured in the new CP propellers factory in China.

The new factory will be able to produce all sizes of CPPs with a specialized in-house bronze casting supply from the existing foundry. Currently Wartsila can offer a wide range of CP propellers with an output of between 1.5 to 60 MW. Most of the propellers will be sold to the rapidly growing Chinese markets with about 30% of production destined for the export market. As about 20 % of the world’s newbuildings use CP propellers of the type manufactured in the new factory, Wartsila foresees significant potential in all global markets in addition to the Chinese market.

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