Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an agreement to establish a joint venture, which will assume ownership of Wärtsilä's 2-stroke engine business.
Through the agreement, CSSC will own seventy per cent of the business through its affiliate CSSC Investment and Development, while Wärtsilä will hold a thirty per cent ownership position. The companies will co-operate in 2-stroke engine technology, marketing, sales, and service activities.
Growth in Asian Markets
It is hoped the participation of CSSC, the largest shipbuilding conglomerate in China, will accelerate the company's growth in important Asian markets, while retaining its position as an international supplier to the global shipping industry.
Business Management Stays in Place
The joint venture will be domiciled in Switzerland, and the head office will remain at the present 2-stroke engine headquarters in Winterthur. The current 2-stroke engine business management team will remain in place. Responsibility for servicing the 2-stroke engines will remain with Wärtsilä Services.
The value of the transaction is approximately EUR 46 million. The closing of the transaction is subject to the required regulatory approvals, which are expected during the first quarter of 2015.
