Wärtsilä, CSSC open engine factory in China, pen cooperation deals

CSSC Wärtsilä Engine Co (CWEC), the joint venture company formed between Wärtsilä and China State Shipbuilding Corporation (CSSC), has formally opened its new production facilities located at Lingang, Shanghai.

The new 20,000 m2 production plant is the first in China capable of locally producing large-bore, medium speed diesel and dual-fuel (DF) engines, Wärtsilä said in its statement on Monday.

The facility has a planned production capacity of 180 engines per year, with Wärtsilä noting that 70 orders have been booked already, and that the CWEC has focused on the cruise, ferry, LNG carrier, offshore, special vessel, and large container ship markets.

Speaking at the opening ceremony, Wärtsilä’s president & CEO, Jaakko Eskola, said that the facility aims to support “China’s shipping industry’s move into the age of LNG fuel.”

According to the statement, of particular importance to the company’s customers is Wärtsilä’s dual-fuel engine technology, which by being able to use liquefied natural gas (LNG) as a marine fuel, enables compliance with the IMO’s TIER III environmental legislation.

The JV also signed a number of agreements, the first of which was a three party strategic cooperation agreement between CWEC, Wärtsilä, and Hudong-Zhonghua Shipbuilding Group to work on newbuild vessel project opportunities for engines and other marine equipment, and jointly optimising vessel concepts in order to improve efficiency and environmental sustainability.

Wärtsilä adds that a similar agreement was signed with Shanghai Waigaoqiao Shipbuilding (SWS) in November 2016.

CWEC also signed a letter of intent with ENN is for the supply of Wärtsilä 34DF dual-fuel main engines for an 8000 cubic meter LNG bunkering vessel, the first such project in China for international shipping purposes. There is an option for a second such vessel.

It has also signed a letter of intent with Xinle is for Wärtsilä 34DF dual-fuel engines for two 7500 DWT cement vessels.

The joint venture was established in July, 2014 with CSSC holding 51 percent of the shares and Wärtsilä the remaining 49 percent.