Wärtsilä has signed a letter of intent with China Shipbuilding Industry Corporation (CSIC) to set up a 50/50 joint venture to manufacture marine auxiliary engines in China. The location of the new factory will be in the Shanghai area. The intention is to start the production of the defined Auxpac W20 generating sets for the growing shipbuilding market in China and to sell these through Wärtsilä global network. Auxiliary engines are used for producing electricity in ships. The parties aim to finalize the negotiations during the first half of 2005. China Shipbuilding Industry Corporation (CSIC) is one of the largest groups in China in the field of design, manufacture and trade of military and merchant ships, marine engineering and marine equipment.