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

People & Company News

USCG Free Boat from Ice Near Woods Hole

A Coast Guard crew responded to a fishing vessel trapped in ice in Woods Hole Passage, Woods Hole, Massachusetts, Saturday. At about 3 p.m., the crew of the fishing boat Capt.

Tug Boat Owner Jailed After Crew Man Dies

A tug boat owner was today was given an 8 month custodial sentence after his crew member died trying to reattach a tow line in a violent storm. During today’s hearing at Southampton Crown Court,

COMPIT to Showcase Smarter Ships, Systems & Solutions

The 14th International Conference on Computer and IT Applications in the Maritime Industries (COMPIT) will take place from 11th to 13th May 2015 in Ulrichshusen, Germany.

Marine Power

China's Maritime Advances Worry US

The Director of U.S. National Intelligence, James Clapper, has expressed his concern at the progress of China in maritime zones it shares with its neighbors, accused

Davie Building LNG-powered Ferries

Canadian shipbuilder Davie held a keel laying ceremony for MV Armand-Imbeau II, marking the beginning of the hull assembly for this first of two sisterships under

Britain Should Appoint Ambassador to the Arctic

The House of Lords Arctic Committee urged that UK should follow the example set by France, Singapore and Japan and appoint an Ambassador for the Arctic.   The

News

USCG Free Boat from Ice Near Woods Hole

A Coast Guard crew responded to a fishing vessel trapped in ice in Woods Hole Passage, Woods Hole, Massachusetts, Saturday. At about 3 p.m., the crew of the fishing boat Capt.

Tug Boat Owner Jailed After Crew Man Dies

A tug boat owner was today was given an 8 month custodial sentence after his crew member died trying to reattach a tow line in a violent storm. During today’s hearing at Southampton Crown Court,

COMPIT to Showcase Smarter Ships, Systems & Solutions

The 14th International Conference on Computer and IT Applications in the Maritime Industries (COMPIT) will take place from 11th to 13th May 2015 in Ulrichshusen, Germany.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2499 sec (4 req/sec)