Wärtsilä' Starts Prop Production in China

Thursday, June 03, 2004
The joint venture company set up by Wärtsilä and CSSC (China State Shipbuilding Corporation) in China to design, manufacture and deliver Fixed Pitch Propeller (FPP) packages has officially started operating at the beginning of June 2004. The new company, called Wärtsilä-CME Zhenjiang Propeller Co. Ltd, is 55%-owned by Wärtsilä and 45%-owned by Zhenjiang CME Co. Ltd (CME), the latter being a wholly owned subsidiary of the CSSC. The move comes at the right time for Wärtsilä as the focus of the world's shipbuilding industry shifts heavily to Asia, notably South Korea, Japan and increasingly China. In 2003, for example, Asian shipyards attracted orders to 1400 new vessels compared with 400 in Europe.

The start-up of propeller manufacturing in China marks a significant step for both Wärtsilä and the Chinese party. It brings Wärtsilä close to its Asian customers, which will help the company serve these customers better. Wärtsilä will also gain from low-cost manufacturing and higher business volume through a local manufacturing. Similarly, local propeller manufacture brings the globally recognized high quality of the Lips brand within reach of Asian shipbuilders.

The joint venture will commence operations in CME's premises in Zhenjiang some 220 km west of Shanghai. The Chinese party is providing the plant's production equipment and personnel, while Wärtsilä's contribution will be the design and manufacturing expertise. The new company will have approximately 260 employees.

Wärtsilä-CME Zhenjiang Propeller Co. Ltd will produce Lips- and Kaida-brand FPPs initially up to a weight of 75 tons but this will be increased to conform market requirement as production equipment is upgraded. FPPs are used in 75 - 80% of all new-build vessels in the world today, typical applications being bulk carriers, container vessels and tankers. The production volume will start at around 1000 tons of propellers a year, growing gradually to an estimated 4000 tons after 10 years.

The joint venture will begin selling in China and through Wärtsilä Sales Network in Asia, its eventual goal is worldwide coverage. Wärtsilä-CME Zhenjiang Propeller Co. Ltd's board of directors has seven members, four from Wärtsilä and three from CME. Mr Richard Wiefelspuett has been appointed Managing Director by Wärtsilä.

Maritime Reporter March 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Canadian Icebreaker Refit Contracts Awarded

The Canadian Government informs it has awarded a $6.5 million contract to Babcock Canada Inc. for critical refit work for Canadian Coast Guard ship 'CCGS Louis S.

Atkins Gain Maersk Oil Engineering Contract

Design, engineering and project management consultancy Atkins, says it has been awarded an engineering support contract covering three of Maersk Oil’s UK assets in the North Sea.

Newport News, ODU Partner for Bachelor's Degree Program

Huntington Ingalls Industries (HII) announced today that apprentices at Newport News Shipbuilding will now have the opportunity to earn a bachelor of science degree

Marine Propulsion

Wärtsilä Reports Healthy Ship Power Sector in Q1 2014

In its interim financial report January to March 2014 Wärtsilä notes healthy development in ship power and services offsetting challenges in power generation markets.

Fishing Vessels Fit with Wärtsilä’s NOx Reducer

Wärtsilä said its new NOx Reducer will be fitted to two new fishing vessels under construction at the Celiktrans yard in Turkey. The ships are owned by HB Grandi,

NCL Spotlights Eco-Smart Cruising Program

On Earth Day, Norwegian Cruise Line NCL) celebrated key achievements from the past year that, as a part of its Eco-Smart Cruising program, help preserve the world's oceans.

 
 
Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0829 sec (12 req/sec)