Wärtsilä Extends Licence Agreement in China

Wärtsilä Switzerland Ltd and Yichang Marine Diesel Engine Plant (YMD) of Yichang, China, jointly signed an agreement in January 2007 to extend the existing licence agreement for the manufacture and sale of Wärtsilä low-speed marine diesel engines. The new agreement enables YMD to deliver also certain types of low-speed engines designed and developed by Mitsubishi Heavy Industries Ltd, Japan. Wärtsilä Switzerland Ltd is fully owned by Wärtsilä Corporation, Finland, and is Wärtsilä's centre for low-speed marine diesel engines.

YMD currently manufactures Wärtsilä low-speed marine engines between 48 and 70 cm bore. These include the Wärtsilä RT-flex50 electronically-controlled common-rail engine, of 5,800-13,280 kW output, which is tailored exactly to the propulsion requirements of various sizes of bulk carriers in the handymax to panamax size range, product tankers and feeder container vessels.

With the new agreement, YMD will also sell and manufacture Mitsubishi low-speed marine engines of small bore size up to 50 cm which cover a power range of 1,230-13,280 kW. These will be delivered to Chinese shipyards.

This extension to the Wärtsilä licence is made in the framework of the strategic alliance formed in August 2005 in the field of two stroke diesel engines by Wärtsilä and Mitsubishi.

YMD is one of the leading engine manufacturing companies in China and is a member of the China Shipbuilding Industry Corporation (CSIC). It started the manufacture of low-speed diesel engines in 1983, and today supplies low-speed diesel engines with power output from 3,000 to 17,000 kW, together with related services and after-sales support.

This agreement will thus further deepen and expand the long-term co-operation between Wärtsilä and Mitsubishi, as well as CSIC and enable YMD to meet the high market demand for low-speed marine engines.