Wärtsilä, CSIC and Mitsubishi inaugurate new jointly owned marine engine factory in China

Wärtsilä Corporation, Press release, 16 April 2009 at 10:00 UTC+2

Wärtsilä, China Shipbuilding Industry Corporation (CSIC) and Mitsubishi Heavy Industries (MHI) today inaugurated their new, jointly owned, low-speed marine engine factory QMD in Qingdao, Shandong province. The state-of-the-art QMD factory is one of China’s most advanced engine factories, featuring a modern welding shop, machine shop, assembly shop, and a testing shop, as well as facilities for heat treatment, blasting and painting. The automated equipment and processes, the flexible use of test beds, the possibility to test two large engines at full load in parallel, together with the efficient internal logistics, make this one of the most efficient engine production factories in the world.

Civil construction of the factory started in May 2008. Within ten months, most of the construction work, the equipment installation and commissioning was completed. The factory became operational in March 2009. When totally completed, the factory will represent an overall investment of approximately EUR 100 million with a production capacity of 1 million BHP.

QMD has a very healthy orderbook worth some EUR 200 million. The engines on order are mainly of the Wärtsilä RT-flex50, RT-flex60C and RT-flex82C, and Mitsubishi UEC50 engine types. These engines are all destined for Chinese shipyards.

“QMD is an important addition to the two-stroke engine building capacity in China, and in close cooperation with other Chinese engine builders, will contribute to increasing the supply of domestically built engines to Chinese shipyards.” says Rien Hoogerbrugge, CEO of QMD.

The factory will have a total of around 500 employees by the end of this year. Located near the Haixiwan area on the Bohai Sea, the QMD factory is an important part of the CSIC Haixiwan shipbuilding and repairing base, primarily serving China’s growing shipbuilding industry, but is also able to export engines to other shipbuilding markets.

First engine completed

The first engine already produced at the new factory was a seven-cylinder Wärtsilä RT-flex60C, which successfully passed its factory acceptance test in March to the full satisfaction of classification requirements, the shipyard, and the ship owner. The factory offers the full range of low-speed engines, with bore sizes from 50 cm upwards, of the Wärtsilä RTA and RT-flex engine types and the Mitsubishi UE engine types. It has the capacity to build engines of up to 96 cm bore. The manufactured engines will be branded as QMD-Wärtsilä and QMD-MHI engines respectively.

QMD manufactures and services low-speed marine diesel engines under licence from Wärtsilä and Mitsubishi. Additionally, QMD will also focus on the research, development, and prototype manufacture of the new generation of energy-saving and environmentally friendly low-speed marine diesel engines, which use the advanced technologies of Wärtsilä and Mitsubishi.

The joint venture company Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co., Ltd. (QMD) is owned jointly by China Shipbuilding Industry Corporation (50%), Wärtsilä Corporation (27%) and Mitsubishi Heavy Industries Ltd (23%). The company was set up in 2006 to provide a world-class supply of large marine engines, together with local technological expertise and support within the same field. The joint set up is unique in China, and provides a very good basis for efficient production and high quality.

Media contacts:

Mr Rien Hoogerbrugge
Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co., Ltd. (QMD)
501 Li Jiang East Road
Economic & Technological Development Zone
Qingdao 266520
Tel: +86-532-86708080-6000
e-mail: admin@qmdltd.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

Ms Zhang Ling
Legal Affairs Office Director
Shanghai Marine Diesel Engine Research Institue
No.3111 Huaning Road, Shanghai 201108, China
Tel: +86-21-31310505
e-mail: zhangling@csic-711.com

Mr Fumihiro Okabe
Manager, Marine Diesel & Machinery Business Section
Mitsubishi Heavy Industries, Ltd.
Tel: +81-3-6716-3393
E-mail: fumihiro_okabe@mhi.co.jp

Wärtsilä 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 close to 19,000 professionals manning 160 locations in 70 countries around the world. Wärtsilä is listed on the Nordic Exchange in Helsinki, Finland.