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 June 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

MNZ Opens New Office in Port Taranaki

Maritime New Zealand (MNZ) informs that for the first time in 5 years it has a permanent presence in New Plymouth on the opening of a new office at Port Taranaki

NSRP Risk Management Panel and SCA Joint Meeting

The National Shipbuilding Research Program (NSRP) Risk Management Panel will be meeting jointly with the Shipbuilders Council of America (SCA) November 5-6, 2014 in Virginia Beach, Va.

WEG to Showcase Drive Solutions at SMM

WEG, a global supplier of drive systems, will showcase its range of systems for the shipbuilding and offshore industry at this year’s SMM (Shipbuilding, Machinery & Marine Technology Fair) in Hamburg.

Marine Power

WEG to Showcase Drive Solutions at SMM

WEG, a global supplier of drive systems, will showcase its range of systems for the shipbuilding and offshore industry at this year’s SMM (Shipbuilding, Machinery & Marine Technology Fair) in Hamburg.

Scottish Sea Farms Takes New Vessel Delivery

Scottish Salmon Farms has taken delivery of its latest vessel – powered by twin Doosan V158TIH main engines supplied by WaterMota.   Designed by consultant naval

There’s Still Time for SHIPPINGInsight Award Entries

Entry submissions for the first SHIPPINGInsight Award are due Friday, Aug. 1, but organizers said they will continue to accept nominations through following week to provide some extra time.

News

Port Of Los Angeles & MBDA at USC Team Up to Promote Trade

The Port of Los Angeles and the U.S. Department of Commerce Minority Business Development Agency (MDBA) Center at the University of Southern California will

NSRP Risk Management Panel and SCA Joint Meeting

The National Shipbuilding Research Program (NSRP) Risk Management Panel will be meeting jointly with the Shipbuilders Council of America (SCA) November 5-6, 2014 in Virginia Beach, Va.

US DOE Approves Oregon LNG Export Project

The U.S. Energy Department said on Thursday it has approved Oregon LNG to export liquefied natural gas, as the Obama administration works through applications to

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Pipelines Port Authority Salvage Ship Electronics Ship Repair Shipbuilding / Vessel Construction Winch
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: 0.2018 sec (5 req/sec)