Wärtsilä Corporation STOCK EXCHANGE RELEASE 2 December 2003
Wärtsilä will begin manufacturing propellers in China. Wärtsilä´s wholly owned company Wärtsilä Propulsion and Zhenjiang CME Co. Ltd (CME), wholly owned by the China State Shipbuilding Corporation (CSSC), have today signed a contract to establish a joint venture company. The company will be 55%-owned by Wärtsilä and 45%-owned by CME and its name will be Wärtsilä-CME Zhenjiang Propeller Co. Ltd.
”China’s shipbuilding industry is growing rapidly and 15% of new ships are currently built in the country. China also is developing into a significant production country for ship equipment. The propeller manufacturing in China is Wärtsilä´s first step in developing its production in this growing market”, says Wärtsilä’s President and CEO Ole Johansson.
CSSC is the leading shipbuilding corporation in China. For CSSC it is important to create a network of competitive component suppliers for increasingly demanding ships. With Wärtsilä´s design and expertize and CME’s manufacturing skills the companies will create a competitive propeller supplier which has great growth opportunities in the global market.
The company will produce LIPS and Kaida brand propellers. The joint venture’s market area will the whole world.
The joint venture will commence operations in CME´s premises in Zhenjiang some 220 km west of Shanghai. The Chinese party will provide the plant’s production equipment and personnel, while Wärtsilä’s contribution will be the design and manufacturing expertise. Operation is expected to be started early next year after the requisite business licenses are received.
The management will come from CME and Wärtsilä. The new company will have approximately 270 employees.
About CSSC and CME
CSSC is a state-owned group of 58 enterprises engaged in shipbuilding, ship repair, shipboard equipment manufacturing and marine design. The workforce is 90,000 persons. CSSC incorporates 14 large or medium sized shipyards.
CME is a wholly owned subsidiary of CSSC. CME produces engines, propellers, anchor chains and other marine equipment.
Wärtsilä is The Ship Power Supplier for builders, owners and operators of vessels and offshore installations. We are the only global company to take complete care of customers´ ship machinery at every lifecycle stage.
Wärtsilä is a leading provider of power plants, operation and lifetime care services in decentralised power generation.