Wärtsilä and HHI to Set Up Joint Venture

Tuesday, January 23, 2007
Wärtsilä and Hyundai Heavy Industries Co. Ltd (HHI) have signed an agreement to set up a 50/50-owned joint venture in Korea to manufacture dual-fuel engines for LNG (liquefied natural gas) carriers. The total investment in the company will be EUR 58 million, Wärtsilä's share being EUR 29 million. The name of the company will be Wärtsilä Hyundai Engine Company Ltd and the intended location is South Korea. The technology shift towards dual-fuel machinery in LNG carriers has significantly increased demand for Wärtsilä's dual-fuel engines. The main market is in Korea. Demand in the market is forecast to continue growing in pace with the increasing demand for natural gas. To date Wärtsilä has received orders for 206 Wärtsilä 50DF dual-fuel engines for 52 LNG carriers, most of which will be built in Korea. The global market share of Korea in the LNG shipbuilding market currently exceeds 70%.

The joint venture will manufacture Wärtsilä 50DF dual-fuel engines for the Korean, Japanese, Chinese and Taiwanese shipbuilding markets. Focusing on assembly and testing of the engines, the joint venture is scheduled to deliver its first engine in the second half of 2008. The total capacity of the factory will be in the magnitude of 100 engines a year. Wärtsilä's sales organization will continue to serve the Japanese, Chinese and Taiwanese markets whereas the Korean market will be served by the joint venture company directly.

The joint venture will utilize the established global service networks of Wärtsilä and HHI to take complete care of customers' ship machinery needs at every stage in about 70 countries. The Trieste factory in Italy will continue to manufacture Wärtsilä 50DF dual-fuel engines for the marine markets outside East Asia and the growing worldwide power plant market. Wärtsilä and Hyundai Heavy Industries have a long history of close co-operation. Wärtsilä and HHI have a licence agreement to produce low-speed engines. The deal is subject to the approvals of the relevant regulatory authorities.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators 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: 0.0896 sec (11 req/sec)