Wärtsilä and Chinese CSSC-MES Diesel sign licence agreement for manufacture of low-speed engines

Wärtsilä Corporation, Trade press release 1 December 2008 at 10:00 UTC+2

Wärtsilä and Chinese CSSC-MES Diesel Co Ltd (CMD) have jointly signed a licence agreement for the manufacture and sale of Wärtsilä low-speed marine diesel engines by CMD in China. The agreement grants CMD the right to manufacture all sizes of Wärtsilä RTA and RT-flex modern low-speed engine types at its factory in Shanghai. However, CMD will focus on engines of 60 cm cylinder bore and larger.

The new licence agreement with CMD will enable a significant contribution to the delivery of Wärtsilä low-speed marine engines to the shipbuilding industry in China. The agreement also reinforces the partnership between Wärtsilä and CSSC (China State Shipbuilding Corporation) through Wärtsilä’s existing licensees Hudong Heavy Machinery Co Ltd and Zhenjiang CME Co Ltd which are both members of the CSSC group.

The agreement was signed by Mr Shuhei Mizuhara, President of CMD, and Mr Martin Wernli, President of Wärtsilä in Switzerland. “CMD welcomes the new agreement with Wärtsilä as it helps our company to meet our customers’ requirements. It will ensure CMD becomes a leading ship equipment supplier to the Chinese shipbuilding industry,” said Mr Shuhei Mizuhara.

“This year Wärtsilä and CSSC are celebrating their 30-year business partnership. Wärtsilä looks forward to further developing this relationship with CMD and to increasing the market share for Wärtsilä common-rail low-speed engines in a long-lasting fruitful partnership,” said Mr Martin Wernli.

Support for the manufacture of Wärtsilä low-speed engines by CMD will be provided by Wärtsilä in Switzerland which is the group’s centre of excellence for the design, development, research, marketing, licensing, servicing and support of Wärtsilä low-speed engines.

Wärtsilä currently has 17 licensees related to production of low-speed engines located in Asia, South America, and Europe.

CMD in production
CMD was established in 2006 as a joint venture of China State Shipbuilding Corporation, China CSSC Holdings Ltd, and Mitsui Engineering & Shipbuilding Co Ltd with its factory in Shanghai Lingang heavy equipment production area, close to major shipyards. It is already a major builder of low-speed marine engines. In 2008, the company expects to have built engines with an aggregate power of 960 MW (1.3 million bhp). It has a target of an annual production by 2011 of more than 100 engines amounting to more than 2200 MW (3.0 million bhp).

Media contacts:

Mr Martin Wernli
Wärtsilä Switzerland Ltd
Direct tel: +41 52 262 2686
e-mail: martin.wernli@wartsila.com

Mr Shuhei Mizuhara
CSSC-MES Diesel Co Ltd (CMD)
Direct tel: +86 21 61 18 66 66
e-mail: Mizuhara@shcmd.com.cn

Ms Marit Holmlund-Sund
Senior Manager, PR and Marketing Communications
Wärtsilä Corporation
Direct tel: +358 10 709 1439
Direct fax: +358 10 709 1425
e-mail: marit.holmlund-sund@wartsila.com

Wärtsilä Corporation in brief:
Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of over 18,000 professionals manning 160 locations in 70 countries around the world. Wärtsilä is listed on the Nordic Exchange in Helsinki, Finland.

CSSC-MES Diesel Co Ltd in brief:
CMD was established as a jointly venture by China State Shipbuilding Corporation, China CSSC Holdings Ltd, and Mitsui Engineering & Shipbuilding Co Ltd. CMD is equipped with large NC equipment and large modern test equipment, and manufactures low speed diesel engines with cylinder bores of 600 mm or larger for ships requiring a large propulsive power. By 2010, after completion, the annual throughput will reach three million horsepower. CMD will become the core and central power in the area of manufacturing high-powered low-speed diesel engines in China.