Wärtsilä, CSSC set up joint venture in China
Wärtsilä and China State Shipbuilding Corporation (CSSC) have 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) factory will be located at Lingang, Shanghai, and is expected to have its first engine ready for delivery by the end of 2015. The company will target the growing offshore and LNG markets, as well as the market for very large container vessels. Wärtsilä has a 49% share in the joint venture and an equity investment of approximately EUR 12M.
The new joint venture company, together with two other already existing Wärtsilä joint ventures for medium-speed engine production, will now be able to offer the most complete portfolio of Wärtsilä’s medium-speed engines in China. It will also be the first China-based company able to manufacture large-bore medium-speed diesel and dual-fuel engines.
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. 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 industry leading dual-fuel offering is a major consideration for Chinese yards.