CSSC Wartsila Engine Corporation (CWEC), the joint venture between China State Shipbuilding Corporation (CSSC) and Wartsila Engine, has commenced construction of a new factory in Lingang, Shanghai, for the production of Wartsila engines.
Additionally, CWEC has signed strategic cooperation agreements with the Hudong Zhonghua and Shanghai Waigaoqia (SWS) shipyards to develop ship designs and solutions that will meet the evolving needs of the yards’ clients.
A letter of intent was also signed with SWS for the delivery of Wartsila Auxpac 32 generating sets in 2017 for three large container vessels being constructed at the yard.
Wartsila Engines Marine Solutions senior vice-president Roger Holm said: "It is an honour and a privilege to celebrate this latest milestone in our joint venture journey.
"By combining the strengths of our two companies; CSSC’s strong capabilities as the number one ship builder in China and Wartsila’s industry leading technologies, we can together make an important difference in today’s challenging global marine market.
The new 20,000m² facility of CWEC joint venture will manufacture medium and large bore, medium speed, and diesel and dual-fuel Wartsila engines including the Wartsila 26, Wartsila 32, Wartsila 34DF, and Wartsila 46F engines at a production capacity of 180 engines per year.
The first batch of production is expected to be ready for delivery in 2016.
The new joint venture is expected to provide CSSC Group and other Chinese yards with increased access to the Wartsila range of engines at faster delivery times and better pricing.
CSSC president Wu Qiang said: "This is an important occasion for the shipping industry in China.
"The new factory will produce state-of-the-art marine engines that will serve our customers with value adding efficiencies.
"We are pleased to cooperate with Wartsila in this exciting joint venture."
Wartsila owns 49% of the CWEC joint venture, which was established in 2014 and intends to target the offshore and LNG markets, as well as the large container vessel segment.
The company set up its first joint venture with the CSSC Group in 2004 with the launch of Wartsila CME Zhenjiang Propeller Co for propeller production.
Wartsila currently has joint ventures for propeller, auxiliary engines and mid-size medium-speed engine production with strong Chinese industrial groups and a joint venture for automation services in China.
Image: The ground breaking ceremony after agreements were signed between CWEC and the Hudong Zhonghua and Shanghai Waigaoqia (SWS)shipyards. Photo: courtesy of Wartsila.