Wärtsilä sets up factory in China

The new factory for Wärtsilä Auxpac marine generating sets in China was inaugurated today by Wärtsilä Qiyao Diesel Company Ltd (Shanghai), the joint venture between Wärtsilä Corporation and the Shanghai Marine Diesel Engine Research Institute (SMDERI).

“China is one of the leading shipbuilding countries in the world and its shipbuilding will grow very fast. For Wärtsilä this joint venture is a major step in our strategy to be close to the customers in China and increase our global market share in auxiliary engines”, says Ole Johansson, President & CEO of Wärtsilä Corporation.

“There has been long-term good relationship between China Shipbuilding Industry Corporation (CSIC) and Wärtsilä. The setup of Wärtsilä Qiyao Diesel is another successful example of mutual benefit, combined with the strength of both parties. This new factory would definitely have the capability to manufacture the world class diesel products, which is significant for the development of Wärtsilä diesel engines in China, as well as the growth of China shipbuilding industry”, says Li Chang Yin, General Manager of CSIC

Wärtsilä and SMDERI, a subsidiary of CSIC, signed the 50/50 joint venture contract in 2005 to establish Wärtsilä Qiyao Diesel Company Ltd (Shanghai). The total investment is approximately EUR 10.0 million in the company, which will manufacture Wärtsilä Auxpac 20 and Auxpac 26 diesel generating sets.

The new assembly factory manufactures Wärtsilä Auxpac diesel generating sets for the growing shipbuilding market in China and also exports them to other countries through Wärtsilä’s global sales network. The factory is expected to deliver more than 100 Auxpac sets during 2007 focusing mainly on Wärtsilä Auxpac 20. The production of Auxpac 26 will start by the end of 2007 and the annual production capacity will be some 300 to 350 sets.