Wärtsilä Propulsion, a wholly owned subsidiary of the Finnish diesel engine company Wärtsilä, will begin manufacturing propellers in China. A joint venture company has been established with Zhenjiang CME company (CME), a subsidiary of the China State Shipbuilding Corporation (CSSC). To be known as Wärtsilä-CME Zhenjiang Propeller Co. Ltd., the company will be 55% owned by Wärtsilä and 45% owned by CME.
"China's shipbuilding industry is growing rapidly and 15% of all new ships are currently built in the country. China also is developing into a significant production country for ship equipment. The propeller manufacturing in China is Wärtsilä's first step in developing its production in this growing market", says Wärtsilä's President and CEO Ole Johansson.
CSSC is the leading shipbuilding corporation in China and is keen to create a network of competitive component suppliers for increasingly sophisticated ships. With Wärtsilä's design and expertize and CME's manufacturing skills the joint venture will, it is claimed, create a competitive propeller supplier which has great growth opportunities in the global market. The company will produce LIPS and Kaida brand propellers for the world market.
The joint venture will commence operations in CME's premises in Zhenjiang some 220 km west of Shanghai. The Chinese party will provide the plant's production equipment and personnel, while Wärtsilä's contribution will be the design and manufacturing expertise. Operation is expected to be started early next year after the requisite business licenses are received.
The management will come from CME and Wärtsilä and the new company will have approximately 270 employees.
