MAN B&W Extends Reach in China

Tuesday, June 21, 2005

Håkan Samuelsson (left), Executive Board Chairman of the MAN Group, and Li Changyin, CSIC President, signing the contract in Munich.

The MAN B&W Diesel Group and the China Shipbuilding Industry Corporation (CSIC) agreed upon comprehensive cooperation with regard to the development and production of large diesel engines. The frame agreement, which was recently signed in Munich, also provides for close cooperation in the purchase and production of components, personnel training and licence production of MAN B&W turbochargers. Signing of the agreement was the focus of a comprehensive programme organised for the visit of the CSIC Top Management to the MAN B&W locations in Copenhagen, Augsburg and Munich.

“This agreement will deepen and extend our cooperation. The projected further development of our collaboration offers new potentials both for MAN B&W Diesel and CSIC in order to jointly and efficiently operate in the growing vessel building market to the mutual benefit of both parties”, said Håkan Samuelsson, Executive Board Chairman of the MAN Group, when signing the contract. While Li Changyin, CSIC President, emphasised: “With MAN B&W, we gained an excellent partner worldwide rich in experience with regard to the development and manufacture of large diesel engines.”

MAN B&W and CSIC are united by many years of partnership. The Chinese shipbuilding group already holds licences for the manufacture of two-stroke and medium-speed four-stroke engines. The frame agreement which has now been signed comprises a closer technical cooperation covering all engine types. Also in the future, large MAN B&W medium-speed engines as well as radial and axial turbochargers will be licence-built by CSIC and their associated companies. In addition, CSIC will be supported by MAN B&W in the establishment of their own crankshaft manufacturing site in China.

A further target of the two companies is the achievement of considerable synergy effects via a joint production and purchasing volume. It is planned to jointly procure and produce engine parts in China.

CSIC is China’s largest ship building company and leading supplier of vessels. The group comprises 47 industrial companies, 28 research centres and a further 15 business units, with 160 000 employees in 20 provinces and towns.

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