Wärtsilä's JV with CSSC to Expands Engines Range

By Joseph R. Fonseca
Monday, July 21, 2014

 

Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an agreement to establish a joint venture for manufacturing medium and large bore medium speed diesel and dual-fuel engines. The CSSC Wärtsilä Engine (Shanghai) Co. Ltd factory will be located at Lingang, Shanghai and is expected to have its first engine ready for delivery by the end of 2015. The company will in particular target the growing offshore and LNG markets, as well as the market for very large container vessels.

The Wärtsilä share of the joint venture is 49 per cent and the size of Wärtsilä's equity investment is approximately EUR 12 million.

The new joint venture company, CSSC Wärtsilä Engine (Shanghai) Co. Ltd, together with two other already existing Wärtsilä joint ventures for medium speed engine production, will now be able to offer the most complete portfolio of Wärtsilä branded medium speed engines in China. It will also be the first China-based company able to manufacture locally large bore medium speed diesel and dual-fuel engines. By being able to produce and deliver locally, the new joint venture will provide CSSC Group and other Chinese yards with closer access to the Wärtsilä range of engines with the benefits of faster delivery times and competitive pricing.

When in full production, the company will manufacture Wärtsilä 26 engines in V-configuration, Wärtsilä 32 main and auxiliary engines, Wärtsilä 46 engines and the Wärtsilä 34DF and Wärtsilä 46DF dual-fuel engines. With LNG becoming increasingly popular as a marine fuel and dual-fuel capability being of increasing importance for both economic and environmental reasons, Wärtsilä’s industry leading dual-fuel offering is a major consideration for Chinese yards.

“This agreement marks an historic moment for our two companies, and it opens the door to exciting new opportunities. China is today the largest shipbuilding nation on earth, and CSSC is the largest shipbuilding company in China. Wärtsilä offers the marine industry’s broadest scope of products, solutions and services, and through this joint venture our two companies can deliver leading edge engine technology that can improve efficiencies and lower operating costs for owners and operators everywhere,” says Jaakko Eskola, Senior Executive Vice President & President, Ship Power, Wärtsilä Corporation.

“This investment demonstrates Wärtsilä’s commitment to supply competitive engine products to its customers in China. Furthermore, it is fully aligned with the central government of China’s 12th Five-Year Plan to significantly increase environmental efficiency and the locally produced content of marine equipment,” adds James Han, President of Wärtsilä China.

“It is a great honour to sign this joint venture agreement with Wärtsilä. Wärtsilä is the leading innovator and the technology leader in developing economic and environmentally sustainable solutions. We look forward to a bright future together,” says Wu Qiang, Vice President, CSSC.

CSSC is one of the largest shipbuilding groups in the world, with ten yards in China accounting for approximately 25 per cent of the country’s newbuild capacity. In 2004 Wärtsilä set up its first joint venture with the CSSC Group when establishing Wartsila CME Zhenjiang Propeller Co Ltd for propeller production.
 

Wärtsilä

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

Finance

Cheap Oil Threatens Debt Squeeze for Smaller North Sea Producers

Small and mid-sized independent oil producers in the British North Sea could face a financing squeeze this year as banks cut lending linked to the value of oil reserves,

Royal Caribbean to Sell Splendour of the Seas

Royal Caribbean Cruises Ltd. announced that it has entered into an agreement to sell its cruise ship Splendour of the Seas to TUI Cruises in the second quarter of 2016.

Johan Sverdrup Contract to "Pioneering Spirit"

Statoil has signed a contract with Allseas for installation of three platform topsides on the Johan Sverdrup field.   The vessel will be installing the topsides for the drilling,

Energy

Interview: Nakilat's Samir Bailouni

SGMF Membership - Uncovered: An interview with Samir Bailouni, Nakilat The Society for Gas and Marine Fuel (SGMF) recently interviewed one of its members, Samir

LTE Deployment Launched in the Gulf of Mexico

Industrial LTE wireless broadband services provider Infrastructure Networks, Inc. (INET) is deploying a pilot LTE system in the Gulf of Mexico.   INET said its

Cheap Oil Threatens Debt Squeeze for Smaller North Sea Producers

Small and mid-sized independent oil producers in the British North Sea could face a financing squeeze this year as banks cut lending linked to the value of oil reserves,

Marine Power

Viking Neptun Delivered for Technip

Viking Neptun was delivered from Kleven Verft to Eidesvik on February 17, and the naming ceremony was held in Stavanger on February 28. The vessel’s Godmother,

Tallink & Meyer Turku to Build LNG Ferry

AS Tallink Grupp and Meyer Turku Oy signed a contract for the construction of LNG powered fast ferry for Tallinn-Helsinki route shuttle operations. The dual

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

News

Apprentices Graduate to Newport News Shipbuilding

Huntington Ingalls Industries (HII) hosted commencement exercises Saturday to graduate 157 apprentices from the company's Apprentice School located at Newport News Shipbuilding.

Elcome Enters Sales, Service Deal with JRC

Elcome International has signed a distribution agreement with Japan Radio Company (JRC) and its technology partner Alphatron Marine.   Under the agreement, the

Her Majesty The Queen to Name Britannia

Her Majesty The Queen, accompanied by His Royal Highness The Duke of Edinburgh, will name the new P&O Cruises vessel Britannia in Southampton on March 10, 2015, P&O Cruises announced.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Salvage Ship Electronics Ship Repair
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: 0.3022 sec (3 req/sec)