Wärtsilä and Zhuhai Yuchai Marine Power sign licence agreement for manufacturing low-speed engines in China

Wärtsilä Corporation, Trade press release, 15 October 2009 at 10:00 UTC+2

Wärtsilä Corporation and Zhuhai Yuchai Marine Power Co Ltd, a subsidiary of Guangxi Yuchai Machinery Group Co Ltd, have jointly signed a licence agreement for the manufacture and sale of Wärtsilä RT-flex low-speed marine diesel engines by Zhuhai Yuchai Marine Power in China.

The agreement grants Zhuhai Yuchai Marine Power the right to manufacture all sizes of Wärtsilä RT-flex modern low-speed engine types at its new factory in Zhuhai City, Guangdong province. However, Zhuhai Yuchai Marine Power will focus on engines of 35 to 50 cm cylinder bore. The main attraction of the new licence agreement for Zhuhai Yuchai Marine Power is Wärtsilä’s programme of RT-flex engines with common-rail technology. This is the latest and most modern technology for low-speed diesel engines incorporating full electronic control of engine processes.

The new manufacturing capacity of Zhuhai Yuchai Marine Power will make a significant contribution to the delivery of Wärtsilä low-speed marine engines to the growing shipbuilding industry in China. The first engines are planned to be completed in November 2011.

The agreement was signed in Zhuhai City in Guangdong province by Mr Jiang Shihong, Chairman of Zhuhai Yuchai Marine Power, and Mr Martin Wernli, President of Wärtsilä in Switzerland.

“Zhuhai Yuchai Marine Power is looking forward to building Wärtsilä low-speed engines. The new agreement makes it possible for our company to deliver today’s most advanced low-speed diesel engines to our shipyard customers. It will extend our product portfolio and put our company right among the leading suppliers of marine equipment to the Chinese shipbuilding industry”, said Mr Jiang Shihong.

“Wärtsilä is pleased to be able to establish this partnership with a company in the well respected Guangxi Yuchai Machinery Group and to increase the manufacturing volume for smaller Wärtsilä common-rail low-speed engines. We look forward to a long-lasting fruitful partnership”, said Mr Martin Wernli.

The new licensee is located at Zhuhai City in Guangdong Province. Founded in 1951, Guangxi Yuchai Machinery Group, the parent company of the new licensee, is located at Yulin City in Guangxi province in south-west China. Guangxi Yuchai Machinery Group is the largest manufacturer of and the market leader for automotive four-stroke diesel engines in China. The new licensee is building a new factory on a 330,000 m2 site at Fushan Industry Zone, Zhuhai City, for the manufacture of low-speed engines. The new factory will have an initial capacity to build engines with an aggregate output of about 1.2 million brake horsepower (885 MW), later increasing to three million bhp (2205 MW).

Wärtsilä RT-flex marine low-speed engines bring direct benefits to shipowners. The new technology provides great flexibility in engine setting for lower fuel consumption, lower minimum running speeds, smokeless operation at all running speeds, and better control of other exhaust emissions.

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

Picture from the signing ceremony
The new licence agreement for the manufacture and sale of Wärtsilä RT-flex low-speed marine diesel engines, was signed by Mr Martin Wernli, President, Wärtsilä Switzerland Ltd. and Mr Jiang Shihong, Chairman of the Board, Zhuhai Yuchai Marine Power Co Ltd.

Media contacts:

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

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
Internet: www.wartsila.com

Mr Jiang Shihong
Chairman of the Board
Zhuhai Yuchai Marine Power Co Ltd
Direct tel: +86 756 5888688
e-mail: jsh@yuchai.cn
Internet: en.yuchai.com


Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine and energy markets. By emphasising technological innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers.
In 2008, Wärtsilä’s net sales totalled EUR 4.6 billion with 19,000 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.

Guangxi Yuchai Machinery Group Co Ltd in brief
Founded in 1951, Guangxi Yuchai Machinery Group is located in Yulin, Guangxi, which enjoys the fine reputation of being “ancient prefecture for a thousand years & city in the south of the mountains”. Now it possesses 37 solely-owned, holding or equity-participating subsidiaries, employs a staff of 16,000 and has total assets of RMB13.4 billion. Today Guangxi Yuchai Machinery Group has the largest independent production base of diesel engines in the world and is the largest manufacturer and exporter of medium- and small-sized construction machinery in China, being known as “the Chinese capital of green power”.