Wartsila and Chinese CSSC-MES Diesel sign licence agreement for manufacture of low-speed engines.

(From Hugin)

Wartsila Corporation, Press release 1 December 2008

Wartsila and Chinese CSSC-MES Diesel Co Ltd (CMD) have jointly signed a licence agreement for the manufacture and sale of Wartsila low-speed marine diesel engines by CMD in China. The agreement grants CMD the right to manufacture all sizes of Wartsila RTA and RT-flex modern low-speed engine types at its factory in Shanghai. However, CMD will focus on engines of 60 cm cylinder bore and larger.

The new licence agreement with CMD will enable a significant contribution to the delivery of Wartsila low-speed marine engines to the shipbuilding industry in China. The agreement also reinforces the partnership between Wartsila and CSSC (China State Shipbuilding Corporation) through Wartsila's existing licensees Hudong Heavy Machinery Co Ltd and Zhenjiang CME Co Ltd which are both members of the CSSC group.

The agreement was signed by Mr Shuhei Mizuhara, President of CMD, and Mr Martin Wernli, President of Wartsila in Switzerland. "CMD welcomes the new agreement with Wartsila as it helps our company to meet our customers' requirements. It will ensure CMD becomes a leading ship equipment supplier to the Chinese shipbuilding industry", said Mr Shuhei Mizuhara.

"This year Wartsila and CSSC are celebrating their 30-year business partnership. Wartsila looks forward to further developing this relationship with CMD and to increasing the market share for Wartsila common-rail low-speed engines in a long-lasting fruitful partnership", said Mr Martin Wernli.

Support for the manufacture of Wartsila low-speed engines by CMD will be provided by Wartsila in Switzerland which is the group's centre of excellence for the design, development, research, marketing, licensing, servicing and support of Wartsila low-speed engines.