Wärtsilä-Hyundai joint venture acquires major order – 16 dual fuel engines for four ships

Wärtsilä Corporation, Press release, 6 August 2008 at 6 am (EET)

Wärtsilä-Hyundai Engine Company Ltd., the new joint venture between Wärtsilä and Hyundai Heavy Industries in South Korea, has received a major order. The order calls for a total of 16 Wärtsilä 50DF-engines for four ships to be built by Samsung Heavy Industries. The contract also includes an option of four more engines for a fifth vessel. The order is recorded in the order book of Wärtsilä-Hyundai Engine Company Ltd.

The engines are to be installed on so called Floating Production Storage Offloading (FPSO) vessels ordered by FLEX LNG. The first engine will be delivered in February 2010.

The Wärtsilä 50DF dual-fuel engine represents a pioneering industry change from traditional steam turbine machinery to a dual-fuel-electric concept with the benefits of much better operating economy and lower exhaust emissions. The engine can run on either natural gas, marine diesel oil (MDO) or on heavy fuel oil (HFO). Furthermore, the engine can smoothly switch between fuels during engine operation and is designed to give the same output regardless of the fuel used.

Wärtsilä Corporation and Hyundai Heavy Industries Co. Ltd (HHI) established the 50/50-owned South Korean joint venture, Wärtsilä-Hyundai Engine Company Ltd, in January 2007. The joint-venture manufactures Wärtsilä 50DF dual-fuel engines for LNG (liquefied natural gas) carriers and other marine applications. The 25,000 m2 manufacturing facility, which has a production volume of approximately 120 engines per year, is located in the Deabul Industrial Complex in South Korea. Production began in July, 2008.

Wärtsilä-Hyundai Engine Company has been certified to the ISO 9001 Quality Management System standard. The certificate was issued on July 28, 2008 by the Netherlands-based accreditating authority, DNV certification BV.

The main markets for the dual fuel engines are in South Korea, which currently has a market share exceeding 80 percent of the LNG shipbuilding market.