The joint venture agreement between Wärtsilä and China State Shipbuilding Corporation (CSSC) for the take-over of Wärtsilä’s 2-stroke engine business, which was announced in July 2014, has now been finalized. The required government and merger control approvals having been received, official closing took place on 19 January 2015. The company is owned 70% by CSSC and 30% by Wärtsilä, and is to be named Winterthur Gas & Diesel Ltd. (WinGD). The head office of WinGD remains in Winterthur, Switzerland and the company has subsidiaries in China, South Korea and Japan.
The joint venture assumes ownership of Wärtsilä’s 2-stroke engine technology, and will continue to develop and promote sales of the Wärtsilä 2-stroke engine portfolio with the full support of both partners. Responsibility for servicing Wärtsilä’s 2-stroke engines will remain with Wärtsilä via its global service network.
The partnership between two of the marine sector’s major players will enhance the market opportunities for Wärtsilä 2-stroke engines. CSSC is the largest shipbuilding conglomerate in China and successfully exports ships and related products worldwide. The synergies of the joint venture will accelerate product development, thus bringing critical new engine technologies to the market faster than earlier. Wärtsilä customers will benefit from the greater market penetration and the worldwide service network that provides lifecycle support.
“The new joint venture company represents an important opportunity for both partners and we stand at the threshold of a positive future for the Wärtsilä 2-stroke engine. The global shipping industry is developing with fuel economy and environmental compliance as its driving forces. The combination of Wärtsilä’s technical leadership and CSSC’s industrial strength will support the aim of WinGD to serve the industry with advanced products,” says Mr Martin Wernli, CEO, WinGD.
Link to the Stock Exchange release published 18 July 2014
Wärtsilä and China State Shipbuilding Corporation to join forces in 2-stroke engine joint venture
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Caption: Logo of Winterthur Gas & Diesel Ltd.
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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 maximizes the environmental and economic performance of the vessels and power plants of its customers.
In 2013, Wärtsilä's net sales totalled EUR 4.7 billion with approximately 18,700 employees. The company has operations in more than 200 locations in nearly 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
Winterthur Gas & Diesel Ltd. in brief:
Winterthur Gas & Diesel Ltd. (WinGD) is a leading developer of two-stroke low-speed gas and diesel engines used for propulsion power in merchant shipping. WinGD’s target is to set the industry standard for reliability, efficiency, and environmental friendliness. WinGD provides design, licenses and technical support to manufacturers, shipbuilders, and ship operators worldwide. The engines are sold under the Wärtsilä brand name and are manufactured under license in four shipbuilding countries. WinGD has its headquarters in Winterthur, Switzerland, where its activities were founded in 1898, and employs about 350 people worldwide.