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CWEC opens new engine factory in China

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LNG Industry,

CSSC Wärtsilä Engine Co Ltd (CWEC) – a joint venture (JV) formed by Wärtsilä and China State Shipbuilding Corp. (CSSC) – has announced that it has formally opened its new production facilities in Lingang, Shanghai, China.

The 20 000 m2 facility will be China’s first facility able to locally produce medium-bore/large-bore, medium speed diesel and dual-fuel engines. Specifically, the facility will manufacture Wärtsilä 26, Wärtsilä 32, Wärtsilä 34DF, Wärtsilä 46F and Wärtsilä 46DF engines, with a total production capacity of 180 engines per year. CWEC claims that it has already booked orders for over 70 engines, and that it is focused on the cruise, ferry, LNG carrier, offshore, special vessel and large containership markets.

Jaakko Eskola, the President and CEO of Wärtsilä, said: “Being close to our customers in order to serve them better is central to Wärtsilä's global strategy. We are, therefore, extremely pleased to officially open this modern production facility, the first in China capable of producing DF engines, which will serve China's shipbuilding industry with high quality, technologically advanced Wärtsilä marine engines. It is an honour to be sharing this day with our joint venture partners, CSSC, one of China's most modern industrial corporations. Together, we are supporting China's shipping industry's move into the age of LNG fuel.”

Wu Qiang, the President of CSSC, added: “This is an important day for China's shipbuilding sector as we now have local availability of both medium and large-bore Wärtsilä diesel and dual-fuel engines. Wärtsilä's extraordinary technological accomplishments and global reputation have been built on its proud history spanning more than 180 years. With our two companies now standing shoulder to shoulder behind this joint venture, we can anticipate great things for the future.”

During the opening ceremony, three separate agreements were signed. The first – a three-party strategic cooperation agreement between CWEC, Wärtsilä and Hudong-Zhonghua Shipbuilding Group (a subsidiary of CSSC) – will see all three parties work closely to create more win-win cooperation. For instance, this will include work on newbuild vessel project opportunities for engines and other marine equipment, and jointly optimising vessel concepts in order to improve efficiency and environmental sustainability, whilst creating added customer value.

A similar agreement was signed in November 2016 with Shanghai Waigaoqiao Shipbuilding (SWS), which is also a part of CSSC. Wärtsilä has successfully cooperated with SWS for a number of years, and claims that this agreement is expected to build upon this relationship.

The other agreements were letters of intent (LOIs) signed with ENN (Zhoushan) LNC Co. (ENN) and Ningbo Xinle Shipbuilding Group. The LOI with ENN is for the supply of Wärtsilä 34DF main engines for an 8000 m3 LNG bunkering vessel. This is the first such project in China for international shipping purposes. In addition to this, there is an option for a second such vessel. The LOI with Xinle is for Wärtsilä 34DF engines for two 7500 DWT cement vessels.

The groundbreaking ceremony for the factory took place in October 2015, and the first Wärtsilä engine has already been delivered to the Shanghai Waigaoqia Shipyard (SWS).

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