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Wärtsilä establishes joint venture with CSSC

LNG Industry,


Wärtsilä and China State Shipbuilding Corporation (CSSC) signed an agreement to establish a joint venture for manufacturing medium and large bore medium speed diesel and dual-fuel engines.The CSSC Wärtsilä Engine (Shanghai) Co. Ltd factory will be located at Lingang, Shanghai. The first engine is expected to be ready for delivery by late 2015.The new company will target the growing offshore and LNG markets, as well as the market for large container vessels. Wärtsilä has a 49% share in the joint venture and its equity investment stands at approximately €12 million.

With LNG becoming increasingly popular as a marine fuel, and dual-fuel capability being of increasing importance for both economic and environmental reasons, Wärtsilä's dual-fuel offering is a major consideration for Chinese yards.

CSSC Wärtsilä Engine (Shanghai) Co. Ltd will be the first China-based company able to manufacture locally large bore medium speed diesel and dual-fuel engines. By being able to produce and deliver locally, the new joint venture will provide CSSC Group and other Chinese yards with closer access to the Wärtsilä range of engines with the benefits of fast delivery times and competitive pricing.

When in full production, the company will manufacture Wärtsilä 26 engines in V-configuration, Wärtsilä 32 main and auxiliary engines, Wärtsilä 46 engines and the Wärtsilä 34DF and Wärtsilä 46DF dual-fuel engines.

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"This agreement marks an historic moment for our two companies, and it opens the door to exciting new opportunities. China is today the largest shipbuilding nation on earth, and CSSC is the largest shipbuilding company in China,” said Jaakko Eskola, Senior Executive Vice President & President, Ship Power, Wärtsilä Corporation. “Wärtsilä offers the marine industry's broadest scope of products, solutions and services, and through this joint venture our two companies can deliver leading edge engine technology that can improve efficiencies and lower operating costs for owners and operators everywhere,"

"This investment demonstrates Wärtsilä's commitment to supply competitive engine products to its customers in China,” added James Han, President of Wärtsilä China. “Furthermore, it is fully aligned with the central government of China's 12th Five-Year Plan to significantly increase environmental efficiency and the locally produced content of marine equipment."

Wu Qiang, Vice President of CSSC, said it was a great honour to sign a joint venture with Wärtsilä. “We look forward to a bright future together.”


Adapted from press release by Ted Monroe

Read the article online at: https://www.lngindustry.com/small-scale-lng/18072014/wartsila-china-cssc-joint-venture-dual-fuel-engines-lng/


 

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