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 Today

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

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


SSA Welcomes Decision To Extend BEO

The Singapore Shipping Association (SSA) has welcomed the decision by Singapore’s Minister for Trade and Industry to extend the Competition (Block Exemption

Controversial Nicaragua Canal Project Postponed

China's Hong Kong Nicaragua Development (HKND) Co. said it is delaying the start of construction on a controversial $50 billion inter-ocean canal across Nicaragua until late 2016.

Dan-Bunkering Appoints Bara as Bunker Trader

Dan-Bunkering (Middle East) DMCC is pleased to announce that Lamin Bara has joined the office in Dubai as Bunker Trader as per 1 November 2015. Lamin was

Marine Propulsion

Deltamarin to Designs First LNG Handysize Bulk Carriers

Deltamarin Ltd proudly announces that it has signed a contract to design the world’s first LNG handysize bulk carriers, which will point the way towards greener shipping of commodities.

Rolls-Royce to Exhibit Power Offerings at WorkBoat

Rolls-Royce will showcase its latest marine power innovations, including several MTU commercial marine products and systems, at the International Workboat Show 2015, December 1-3 in New Orleans.

Royston Appoints New US Distributor

Diesel power engineering specialist Royston has appoint a new U.S.-based distributor, citing growing interest in its advanced Enginei marine fuel management and monitoring systems.

Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair 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: 0.0720 sec (14 req/sec)