Wärtsilä to Divest its Shares in Two-stroke JV

By Eric Haun
Thursday, July 24, 2014

Wärtsilä to divest its shares in QMD two-stroke joint venture

Wärtsilä announced that it will divest its shares in the Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co. Ltd. (QMD), the joint venture company established for manufacturing large low-speed marine diesel engines. Wärtsilä's shares in the joint venture will be transferred to the current majority shareholder, Qingdao Qiyao Linshan Power Development Co. Ltd., a company fully owned by China Shipbuilding Industry Corporation. The agreement was signed today in Beijing, China.

Wärtsilä said the value of the transaction is not significant, and the deal will have a positive effect on Wärtsilä's continuing operations but the impact is not significant. The closing of the transaction is subject to the required regulatory approvals.

The divestment comes as a result of the announcement made on July 18 2014 regarding Wärtsilä and China State Shipbuilding Corporation (CSSC) joining forces to establish a new joint venture, which will take over Wärtsilä's two-stroke engine business. Through this agreement, CSSC will own 70 percent of the business through its affiliate CSSC Investment and Development Co. Ltd, while Wärtsilä will hold a 30 percent ownership position. The parties will cooperate in two-stroke engine technology, marketing, sales, and service activities. In this new context, the two-stroke business currently owned by Wärtsilä will focus on its core activities, including technology development, licensing, product management as well as sales and marketing of two-stroke engines. Manufacturing will be delegated entirely to licensees.

"The move to divest manufacturing assets will free up resources and increase our emphasis on accelerating the development of new engines and advanced technologies. In particular, Wärtsilä's unique low-pressure dual-fuel two-stroke engine development, the further expansion of the environmentally friendly Generation X -engines, as well as emission reduction technologies will benefit from this increased focus," said Martin Wernli, Vice President, Wärtsilä Ship Power, two-stroke and Managing Director, Wärtsilä Switzerland Ltd.

QMD will continue to manufacture Wärtsilä low-speed marine engines under license from Wärtsilä via the new joint venture with CSSC. The currently valid license agreement will not be affected by the transaction.

QMD was established by China Shipbuilding Industry Corporation (CSIC), Wärtsilä Corporation, and Mitsubishi Heavy Industries Ltd (MHI) in 2006. The joint-venture agreement was signed by Qingdao Qiyao Linshan Power Development Co Ltd (QQLPDC) and Panda Shinco Holding BV (PSH). At that time, QQLPDC was jointly owned by Yichang Marine Diesel Plant (YMD) and Shanghai Marine Diesel Engine Research Institute (SMDERI), both being underlying units of CSIC. PSH is jointly owned by Wärtsilä and MHI. QMD was dedicated to the research and development testing, prototype manufacturing, production, and sales of large low-speed two-stroke marine diesel engines.

wartsila.com
 

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

People & Company News

Buoys in Disputed Waters Roil South China Sea Dispute

Buoys stretched "as far as eye could see" - Philippine sailor. The Philippine navy recently found a large steel marker bearing Chinese inscriptions and hundreds

White House: Iran Talks Deadline Could Slip

The White House said Tuesday's deadline for negotiators in Vienna to come to a final, firm agreement on Iran's nuclear program could slip. When asked if President

SUNY Maritime College to Host e-Navigation Underway 2015

The State University of New York Maritime College will host the e-Navigation Underway 2015 – North America conference from September 28 to 30 on its Throggs Neck, N.

New Products

Tideland Introduced New Navigation Aids at Seawork

Tideland Signal Corporation (Tideland) introduced a number of new innovative aids to navigation (AtoN) products at Seawork 2015, including SB-1800, the newest member

AkzoNobel’s Carbon Credits Methodology Wins Award

AkzoNobel’s landmark carbon credits methodology for the shipping industry has won the Best Offsetting Project award in the 2015 Voluntary Carbon Market Rankings.

Hercules-2 Officially Launched

MAN Diesel & Turbo, Wärtsilä and Winterthur Gas & Diesel to collaborate on major, EU-funded project.   A major cross-industry initiative led by MAN Diesel & Turbo,

Finance

Buoys in Disputed Waters Roil South China Sea Dispute

Buoys stretched "as far as eye could see" - Philippine sailor. The Philippine navy recently found a large steel marker bearing Chinese inscriptions and hundreds

Navis N4 TOS Open in Liverpool Terminal

Peel Ports, owners and operators of the Port of Liverpool, has achieved a major milestone in its multi-million investment program to transform the port into Europe’s

AkzoNobel’s Carbon Credits Methodology Wins Award

AkzoNobel’s landmark carbon credits methodology for the shipping industry has won the Best Offsetting Project award in the 2015 Voluntary Carbon Market Rankings.

Marine Power

Research Vessel Concept a first for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

MTU Powers RSN Navy's Littoral Mission Vessel

MTU to power eight Republic of Singapore Navy’s new patrol vessels. Employees and guests, including senior representatives from the Republic of Singapore Navy (RSN) and Ministry of Defence,

Hercules-2 Officially Launched

MAN Diesel & Turbo, Wärtsilä and Winterthur Gas & Diesel to collaborate on major, EU-funded project.   A major cross-industry initiative led by MAN Diesel & Turbo,

Marine Equipment

Tideland Introduced New Navigation Aids at Seawork

Tideland Signal Corporation (Tideland) introduced a number of new innovative aids to navigation (AtoN) products at Seawork 2015, including SB-1800, the newest member

Navis N4 TOS Open in Liverpool Terminal

Peel Ports, owners and operators of the Port of Liverpool, has achieved a major milestone in its multi-million investment program to transform the port into Europe’s

Research Vessel Concept a first for Voith

The new fisheries research vessel of the Shanghai Ocean University will be a first for Voith in several respects.   It is the first fisheries research vessel

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Navigation Offshore Oil Salvage 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: 0.1767 sec (6 req/sec)