CSSC Wärtsilä to Work with Shanghai Shipyards on Ship Designs
- Business & Finance
Finnish engine maker Wärtsilä and China State Shipbuilding Corporation (CSSC) have trough their China-based joint venture – CSSC Wärtsilä Engine (Shanghai) – signed strategic cooperation agreements with the Hudong Zhonghua and Shanghai Waigaoqia (SWS) shipyards to develop ship designs and solutions that will meet the evolving needs of the yards’ clients.
CSSC Wärtsilä also signed a Letter of Intent with SWS for the delivery in 2017 of Wärtsilä Auxpac 32 generating sets for three large container ships currently under construction.
The company signed the agreements and the LOI during the official ground breaking ceremony for a new 20,000 m2 factory at Lingang, Shanghai, on October 27.
The CWEC joint venture was established in July 2014 for the manufacture of medium and large bore, medium speed, diesel and dual-fuel Wärtsilä engines. The new factory will be the first in China capable of producing locally large bore medium speed diesel and dual-fuel engines.
The products to be manufactured at the new facility will include the Wärtsilä 26, Wärtsilä 32, Wärtsilä 34DF, and Wärtsilä 46F engines, the first of which are expected to be ready for delivery in 2016. The production capacity is planned at 180 engines per year.
“It is an honour and a privilege to celebrate this latest milestone in our joint venture journey. By combining the strengths of our two companies; CSSC’s strong capabilities as the number one ship builder in China and Wärtsilä’s industry leading technologies, we can together make an important difference in today’s challenging global marine market,” said Roger Holm, Senior Vice President, Engines, Wärtsilä Marine Solutions.
The CWEC joint venture will target especially the offshore and LNG markets, both of which are growing significantly in China, as well as the large container vessel segment. Wärtsilä’s share of the joint venture is 49 percent, with CSSC controlling the remaining 51%.
“This is an important occasion for the shipping industry in China. The new factory will produce state-of-the-art marine engines that will serve our customers with value adding efficiencies. We are pleased to cooperate with Wärtsilä in this exciting joint venture,” said Wu Qiang, President of CSSC.