Diesel Engines for China Market – Majors Set Up New Company

Press Release
Friday, April 06, 2012
Photo credit: MHI

MHI, Shanghai Diesel Engine, to set up company to manufacture & market industrial diesel engines for the Chinese market

Mitsubishi Heavy Industries, Ltd. (MHI) and Shanghai Diesel Engine Co., Ltd. (SDEC), a major Chinese diesel engine manufacturer, have signed an agreement to establish Shanghai MHI Engine Co., Ltd., to manufacture and market diesel engines in China. The aim of the new joint venture is to make a full-fledged entrance into the rapidly expanding Chinese market for industrial-use diesel engines and to build up market share through more competitively priced products.

The JV is scheduled to begin manufacturing and marketing in December of this year. Shanghai MHI Engine will be capitalized at 200 million yuan (approximately 2.5 billion yen). Ownership will be divided equally between MHI and SDEC. The new company, to be headquartered in Shanghai, will target annual sales of 10 billion yen in the first few years and intends to boost this figure to 20 billion yen thereafter.

The JV will manufacture industrial-use diesel engines with power outputs in the 500 to 1,600 kW range under a manufacturing and marketing license from MHI. The JV's procurement, marketing and after-sale service will take advantage of SDEC's vast domestic network.

MHI has for some time been seeking to build up its share in the rapidly expanding Chinese market, while SDEC has been aiming to launch a full-scale entry into the market for industrial-use diesel engine with outputs of over 500 kW. The interests of the two companies thus meshed and led to the conclusion of the joint venture agreement.

A long-established Chinese manufacturer of diesel engines with some 3,300 employees, SDEC is an affiliate of Shanghai Automotive Industry Corporation (SAIC), the largest automobile manufacturer in China. SDEC's 100 to 500 kW high-speed diesel engines for construction machinery, power generation and marine use hold a large share of the market.

Maritime Today


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

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

People & Company News

China COSCO to be First through the Expanded Panama Canal

China COSCO Shipping has won the draw for its container vessel Andronikos to make the ceremonial first transit through the Expanded Panama Canal during the waterway’s inauguration on Sunday, June 26.

Sellick Equipment to Open New Facility

On April, 20, 2016, at the young age of 97 years, Walter Sellick along with sons Howard Sellick - President, David Sellick - Vice President and grandson Colin Sellick - Systems Manager,

Asia Tankers-VLCCs Rates Ease as Tanker Jams Fade

Port congestion eases at Basra and Chinese ports; tanker demand set to expand on lower oil prices. Freight rates for very large crude carriers (VLCCs), hurt by slower-than-usual release of cargo,

Marine Power

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Pacific Nations Take a Stand on Shipping Emissions

On Earth Day, Pacific leaders queued among 175 countries to sign the Paris Agreement in New York. Earlier that day in London, the International Maritime Organization (IMO),

SCHOTTEL Debuts EcoPeller with High-torque Gears

Propulsion and steering systems manufacturer SCHOTTEL has unveiled its new EcoPeller (SRE), which it said offers improved efficiency and robustness. Playing a

News

Mercury Marine Expands Manufacturing Capacity

Mercury Marine is adding a 53,000 square foot manufacturing capacity expansion to its global headquarters in Fond du Lac, Wisc. The expansion will consist of 45,

Conquest Installs 850t Crane on Allseas Solitaire

Conquest Offshore was contracted by Allseas to remove a 300-ton crane and transport and install a 850-ton Huisman crane on board of one of the largest pipe-lay vessels in the world, Allseas Solitaire.

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction 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: 0.1374 sec (7 req/sec)