Wartsila-CSSC JV opens new engine factory

JANUARY 9, 2017 — CSSC Wärtsilä Engine Co Ltd (CWEC), a joint venture company between Wärtsilä and China State Shipbuilding Corporation (CSSC), has formally opened a new 20,000 sq.m production plant at Lingang, Shanghai that is the first in China capable of locally producing large-bore, medium speed diesel and dual-fuel (DF) engines. The plant will also manufacture medium-bore, medium speed diesel and DF engines.

Wärtsilä 26, Wärtsilä 32, Wärtsilä 34DF, Wärtsilä 46F and Wärtsilä 46DF engines will be produced at the factory, which has a planned production capacity of 180 engines per year.

CWEC has already booked orders for more than 70 engines and is focused on the cruise, ferry, LNG carrier, offshore, special vessel, and large containership markets, all seen as strategic growth markets for Chinese shipbuilding.

“Being close to our customers in order to serve them better is central to Wärtsilä’s global strategy,” said Wärtsilä’s President & CEO, Jaakko Eskola in remarks at the opening ceremony. “We are, therefore, extremely pleased to officially open this modern production facility, the first in China capable of producing DF engines, which will serve China’s shipbuilding industry with high quality, technologically advanced Wärtsilä marine engines.”

“This is an important day for China’s shipbuilding sector as we now have local availability of both medium and large-bore Wärtsilä diesel and dual-fuel engines,” said Mr Wu Qiang, President of CSSC. “Wärtsilä’s extraordinary technological accomplishments and global reputation have been built on its proud history spanning more than 180 years. With our two companies now standing shoulder to shoulder behind this joint venture, we can anticipate great things for the future.”

Three separate agreements were signed during opening ceremony events. The first was a three party strategic cooperation agreement between CWEC, Wärtsilä, and Hudong-Zhonghua Shipbuilding Group, a subsidiary of CSSC. 

In November 2016, a similar agreement was signed with Shanghai Waigaoqiao Shipbuilding (SWS), also a part of CSSC, and currently the largest commercial shipyard in China.

The other agreements signed were Letters of Intent with ENN (Zhoushan) LNG Co (ENN) and Ningbo Xinle Shipbuilding Group (Xinle). The LOI with ENN is for the supply of Wärtsilä 34DF dual-fuel main engines for an 8,000 cu.m LNG bunkering vessel. This represents a landmark, first such project in China for international shipping purposes. There is an option for a second vessel. The LOI with Xinle is for Wärtsilä 34DF dual-fuel engines for two 7500 DWT cement vessels.