Asia/Pacific News
Wärtsilä, Chinese Shipyard Join Forces for Dual-Fuel Engine Making
Wärtsilä Corp. (Wärtsilä) says it has signed a deal with China State Shipbuilding Corp. (CSSC) creating a joint venture for the manufacture of diesel and dual-fuel engines.
The CSSC Wärtsilä Engine (Shanghai) Co. Ltd. factory at Lingang, Shanghai will make medium and large bore medium speed engines, with the first engine ready for delivery by the end of 2015.
The joint venture will sell engines to the offshore, liquefied natural gas (LNG), and very large container vessel sectors.
Wärtsilä invested about €12 million ($16.2 million) in the joint venture and holds 49 percent of the new firm.
Wärtsilä said its dual-fuel engine offerings were a particularly important consideration in the firm's creation because of the shipping industry's adoption of LNG bunkers for economic and environmental reasons.
"This agreement marks an historic moment for our two companies, and it opens the door to exciting new opportunities," said Jaakko Eskola, senior executive vice president and president of Ship Power for Wärtsilä.
"China is today the largest shipbuilding nation on earth, and CSSC is the largest shipbuilding company in China."
Wärtsilä has had a Chinese presence for 20 years and has long-term licensing agreements with a number of Chinese partners, including four engine companies that are part of CSSC.
