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 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

Egypt to receive first LNG shipment from Rosneft in May

Egypt will receive the first of five agreed shipments of liquefied natural gas (LNG) from Russia's Rosneft this month, an official at the state gas board EGAS told Reuters on Thursday.

Massive Layoff Ahead for Hyundai Heavy

Another massive reduction in the Korean shipbuilding workforce may come as most shipyards are still struggling with falling orders and mounting losses, reports Yonhap quoting industry sources.

USCG Foundation Run to Remember Events Announced

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of Coast Guard members and their families, announced this year’s Run

New Products

FUSION Partners Axopar Boats

FUSION, announced today that it signed a partnership with Axopar Boats. Under the terms of the agreement, the full range of Axopar boats will be offered with FUSION

Alfa Laval HCO Filter Approved for Validation Testing

A manufacturer of two-stroke engines has agreed to validation tests of an Alfa Laval hydraulic control oil (HCO) filter . The approval to test the final HCO filter

Logimatic Launches 3D Vessel Performance Management Service

Logimatic has expanded the vessel reporting system and dynamic dashboards within its Sertica software package, to provide an improved level of visual presentation

Finance

Daewoo Shipyard Posts Q1 Operating Loss

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. posted a first-quarter loss after incurring more costs to finish some offshore projects.   First-quarter

Yilport Acquires Sweden's Gavle Terminal

Turkish terminal operator Yilport Holding has gained full control of Gävle’s terminals.   Yilport Holding acquired 100% shares of Gävle Container Terminal (GCT) and Baltic Sea Gateway (BSG).

USCG Foundation Run to Remember Events Announced

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of Coast Guard members and their families, announced this year’s Run

Marine Power

Alfa Laval HCO Filter Approved for Validation Testing

A manufacturer of two-stroke engines has agreed to validation tests of an Alfa Laval hydraulic control oil (HCO) filter . The approval to test the final HCO filter

Jensen Debuts New Tractor Tug Design

Crowley Maritime Corp.’s Seattle-based naval architecture and engineering firm, Jensen Maritime, reports it has designed a new tractor tug for Vessel Chartering

GE Equips New Multipurpose Supply Vessels

After equipping more than 20 purpose supply vessels (PSV)/multipurpose supply vessels (MPSV) for Eastern Shipbuilding, GE has once again been chosen by the builder

Marine Equipment

ICS Pushing For Balanced Update of York Antwerp Rules

At the Comité Maritime International (CMI) Conference, in New York this week, the International Chamber of Shipping (ICS) will be pressing to ensure that the proposed

Aydin Marine Debuts Multi-Touch K-17T

Aydin Marine – the manufacturer of industry-leading, type-approved displays, computers and peripherals, announced today the release of a 17-inch multi-touch, sunlight-readable

$280m Deal for Pacific Patrol Boats Replacement

The Turnbull Government today signed a contract with Austal Ships Pty Ltd to build and sustain up to 21 steel-hulled vessels to replace the existing fleet of Pacific

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Ship Electronics Ship Repair 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: 0.1157 sec (9 req/sec)