Wärtsilä and Jiangsu CuiXing Marine Offshore Engineering to establish a joint venture for manufacturing medium-speed marine engines in China

Wärtsilä Corporation, Stock exchange release 29 June 2011 at 15:00 UTC+2

Wärtsilä and Jiangsu CuiXing Marine Offshore Engineering Co. Ltd. have agreed to establish a joint venture for manufacturing Wärtsilä 26 and Wärtsilä 32 medium-speed marine engines in China. The agreement was signed today in Nantong, China. The value of Wärtsilä’s investment in the joint venture is EUR 16 million. Wärtsilä’s share of the joint venture is 49 per cent and Jiangsu CuiXing’s share 51 per cent.

The joint venture’s production facilities in the Rugao city of Nantong, Jiangsu province in Eastern China, will focus on the assembly and testing of engines. Operations are planned to start in early 2013. The joint venture is subject to approval by the relevant authorities.

“This joint venture is a major step in our strategy to broaden our presence and production close to our marine customers in China, the largest shipbuilding nation in the world. China has notably increased its market share in shipbuilding during recent years, and today has more than 40 per cent of the total global vessel order book. Through this joint venture, we will further improve our leading global position in the marine market,” said Ole Johansson, President & CEO of Wärtsilä Corporation at the signing ceremony.

“This joint venture will enable Wärtsilä to offer competitive products to its customers in the Chinese marine market. Wärtsilä expects to significantly increase its market share of medium-speed engines. Our objective is to become one of the leading medium-speed engine manufacturers in China,” says John Zhu, President, Wärtsilä in China.

Wärtsilä in China
Wärtsilä has been present in China for more than 20 years, through its fully owned subsidiary and long-term licensing agreements. To serve the world’s largest shipbuilding region, Wärtsilä has established joint ventures for propeller and auxiliary generating set production with leading Chinese shipbuilding groups and a joint venture for automation services. Wärtsilä also manufactures thrusters at its 100 per cent owned company facilities, while low-speed engines are produced by seven licensees and by a joint venture company. Before the current investment Wärtsilä’s investments in China exceed EUR 60 million.

In the marine market, the leading Chinese ship owners are Wärtsilä customers. Wärtsilä Services provides service and maintenance for its customers from seven locations in China, the largest of which is in Shanghai.

Including Wärtsilä joint venture companies, there are currently more than 1800 Wärtsilä employees working in China.

For further information, please contact:

Mr Jaakko Eskola
Group Vice President, Wärtsilä Ship Power
Wärtsilä Corporation
Tel: +86 21 5858 5500

Pauliina Tennilä
Director, Investor Relations
Wärtsilä Corporation
Tel: +358 40 570 5530

Tuula Franck
Senior Manager, Media and Stakeholder Relations
Wärtsilä Corporation
Tel +358 400 267555

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 2010, Wärtsilä’s net sales totalled EUR 4.6 billion with more than 17,500 employees. The company has operations in 160 locations in 70 countries around the world. Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.