Wärtsilä and RSHI Group sign licence agreement for manufacturing low-speed marine engines in China

March 20, 2008

Wärtsilä Corporation, Trade & Technical Press Release, 20 March 2008

Wärtsilä and Jiangsu Rongsheng Heavy Industries Group Co Ltd (RSHI) have jointly signed a licence agreement for the manufacture and sale of Wärtsilä low-speed marine diesel engines by RSHI in China.

RSHI plans to build a new factory for the manufacture of low-speed engines in Hefei, Anhui Province, China. The factory will have a targeted annual production capacity of engines aggregating five million brake horsepower (3600 MW).

This licence agreement with RSHI will increase the manufacturing capacity for Wärtsilä low-speed marine engines in China to meet the rapidly growing demands of the Chinese shipbuilding industry.

The latest technology of low speed engines

The agreement grants RSHI the right to manufacture certain types of Wärtsilä modern low-speed engine types between 48 and 96 cm bore size at its works, Hefei Rong An Power Machinery Co Ltd in Hefei, Anhui. The first delivery of a Wärtsilä engine is scheduled by the end of 2009.

“The licence agreement with Wärtsilä is an important milestone for the expansion of RSHI into the marine equipment business. This agreement will enable RSHI to produce today’s most advanced low-speed diesel engines for its own shipyard as well as for external customers, securing RSHI’s future leading role in the Chinese ship and engine building industries”, said Mr Chen Qiang, President and Vice Chairman of the Board of RSHI.

“RSHI is one of the most rapidly expanding shipyard conglomerates in China. It is a pleasure to work with RSHI on the new engine factory, which will fully start with the production of Wärtsilä common-rail low-speed engines. We look forward to a long-lasting fruitful partnership”, said Mr Martin Wernli, President of Wärtsilä in Switzerland.

This licence agreement provides RSHI with the latest technology for low-speed diesel engines including the most modern electronically-controlled common-rail technology. 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. Wärtsilä will also assist RSHI in setting up the new engine factory.