CSSC Wärtsilä Engine Co Ltd (CWEC), the joint venture company formed between Wärtsilä and China State Shipbuilding Corporation (CSSC), has formally opened its new production facilities located at Lingang, Shanghai.
The new 20,000 m2 production plant 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, 32, 34DF, 46F and 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 seventy engines and is focused on the cruise, ferry, LNG carrier, offshore, special vessel, and large container ship markets. Currently eighty people are employed at the plant, and this number is expected to rise to 130 during 2017.
The joint venture was established in July, 2014 with CSSC holding 51% of the shares and Wärtsilä the remaining 49%.
Cooperation Agreements
Three separate agreements were signed during the opening ceremony on 9 January. The first was a three party strategic cooperation agreement between CWEC, Wärtsilä, and Hudong-Zhonghua Shipbuilding Group, a subsidiary of CSSC. The three companies will work more closely together, for example on new build vessel project opportunities and jointly optimising vessel concepts to improve efficiency and environmental sustainability.
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.
Letters of Intent with ENN and Xinle
The other agreements signed were Letters of Intent with ENN (Zhoushan) LNG Co and Ningbo Xinle Shipbuilding Group (Xinle). For ENN Wärtsilä 34DF dual-fuel main engines will be supplied for an 8000 m3 LNG bunkering vessel. There is an option for a second such vessel. The LOI with Xinle is for Wärtsilä 34DF dual-fuel engines for two 7500 DWT cement vessels.
