Wärtsilä and its Korean partner, Doosan Engine Co. Ltd, a member of the Doosan Group, have signed a ten year extension to the licensing agreement to build Wärtsilä low-speed engines. The agreement renewal covers the period from 2012 to 2021.
Doosan Engine Co. Ltd, along with its predecessor licence holders Korea Heavy Industries and Samsung Heavy Industries, has been a long standing licensee of Wärtsilä, altogether for 28 years. It has produced close to 400 engines with a total power of over 20,000,000 BHP. Doosan Engine is the second biggest engine manufacturer in the world.
Under the terms of the agreement, the licensee is authorized to manufacture and sell Wärtsilä low-speed marine diesel engines within its specified territory. The full range of Wärtsilä RTA, RT-flex, and X-series marine engines are included in the scope of the agreement.
"We are very pleased to renew this agreement with our business partner in Korea. Doosan Engine is a major global producer of large marine diesel engines, and this agreement strengthens our partnership in promoting Wärtsilä brand low-speed engines in the territory. Our expectations are high for increasing our market share in the Korean market, and we are confident that by extending this agreement for a further ten years, our goals can be achieved," says Mr. Martin Wernli, President, Wärtsilä Switzerland, Vice President, Product Center two-stroke.
Wärtsilä in Switzerland is the center for the company's two-stroke engine R&D and business operations.
"By renewing this licence agreement, both companies will continue their close co-operation in providing the latest technology low-speed engines to the rapidly changing shipbuilding market. It is a win-win growth opportunity for both companies, and will certainly strengthen their market positions," says Mr. Sung-Hee Lee, President & CEO of Doosan Engine Co. Ltd.
The agreement was signed at a ceremony held on 7 November 2011 at the headquarters of Doosan Engine Co. Ltd in Changwon, South Korea.
November 15, 2011