Joint Venture Agreement for Wärtsilä and Chinese Research Institute
Wärtsilä and Shanghai Marine Diesel Engine Research Institute, an underlying company of China Shipbuilding Industry Corporation (CSIC), signed a joint venture contract to start manufacturing of Wärtsilä designed marine auxiliary engines in China. The 50/50 owned company will be named Wärtsilä Qiyao Diesel Company Ltd. The parties will invest a total of US$8.6 million in the company, Wärtsilä's share of this investment being US$4.3 million.
A new assembly factory will be constructed in the Shanghai area where the new company will manufacture defined Wärtsilä Auxpac W20 generating sets for the growing shipbuilding market in China and distribute these through Wärtsilä's global sales network. The joint venture is subject to relevant authority approvals and will start operations after the business licence has been received. Production is estimated to start in early summer 2006.