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 May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

ASRY in Maritime Deal with Relay

UK-based engineering firm signs service agreement to provide direct services to vessels in ASRY, expanding the list of the yard’s onsite specialist contractors.

Huawei Bags MCT Submarine Cable Contract

Huawei Marine has signed a system design and construction agreement with a consortium comprising Telekom Malaysia Berhad, Symphony Communication and Telcotech

Solarworld Wants Duties on Chinese Solar Goods in U.S. Extended

German solar manufacturer SolarWorld will apply to the United States for an extension of duties on Chinese panel imports that are due to end this year, weekly Euro am Sonntag said.

Marine Propulsion

US Funding for Air Emissions/Alternative Energy Projects

The U.S. Maritime Administration (MARAD) announced that up to $1.3 million in Federal funding is now available through cooperative agreements for projects supporting

Torqeedo Introduces New Deep Blue Inboard

Torqeedo now offers a shaft drive version of its 40 and 80 horsepower Deep Blue motor. An electric drive designed for marine use from the ground up, the Deep Blue inboard shares the safety,

Anglo-Eastern Signs Turbocharger Maintenance Deal

MAN PrimeServ Turbocharger, part of MAN Diesel & Turbo’s service division, has signed a Premium Turbocharger Maintenance Contract with Anglo-Eastern Ship Management.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Salvage Ship Electronics Ship Simulators 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: 0.1772 sec (6 req/sec)