Wärtsilä and Chinese CSSC-MES Diesel sign lic...

Wärtsilä Corporation, Press release 1 December 2008

Wärtsilä and Chinese CSSC-MES Diesel Co Ltd (CMD) have jointly signed
a licence agreement for the manufacture and sale of Wärtsilä
low-speed marine diesel engines by CMD in China. The agreement grants
CMD the right to manufacture all sizes of Wärtsilä 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 Wärtsilä low-speed marine engines to
the shipbuilding industry in China. The agreement also reinforces the
partnership between Wärtsilä and CSSC (China State Shipbuilding
Corporation) through Wärtsilä'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 Wärtsilä in Switzerland. "CMD welcomes
the new agreement with Wärtsilä 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 Wärtsilä and CSSC are celebrating their 30-year business
partnership. Wärtsilä looks forward to further developing this
relationship with CMD and to increasing the market share for Wärtsilä
common-rail low-speed engines in a long-lasting fruitful
partnership", said Mr Martin Wernli.

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

Wärtsilä currently has 17 licensees related to production of
low-speed engines located in Asia, South America, and Europe.


CMD in production
CMD was established in 2006 as a joint venture of China State
Shipbuilding Corporation, China CSSC Holdings Ltd, and Mitsui
Engineering & Shipbuilding Co Ltd with its factory in Shanghai
Lingang heavy equipment production area, close to major shipyards. It
is already a major builder of low-speed marine engines. In 2008, the
company expects to have built engines with an aggregate power of 960
MW (1.3 million bhp). It has a target of an annual production by 2011
of more than 100 engines amounting to more than 2200 MW (3.0 million
bhp).

Link to pictures

Media contacts:

Mr Martin Wernli
President
Wärtsilä Switzerland Ltd
Tel: [phone]
[e-mail]


Ms Tuula Franck
Press Manager
Wärtsilä Corporation
Tel: [phone]
[e-mail]


Wärtsilä Corporation in brief
Wärtsilä enhances the business of its customers by providing them
with complete lifecycle power solutions. When creating better and
environmentally compatible technologies, Wärtsilä focuses on the
marine and energy markets with products and solutions as well as
services. Through innovative products and services, Wärtsilä sets out
to be the most valued business partner of all its customers. This is
achieved by the dedication of over 18,000 professionals manning 160
locations in 70 countries around the world. Wärtsilä is listed on the
Nordic Exchange in Helsinki, Finland.
www.wartsila.com

CSSC-MES Diesel Co Ltd in brief
CMD was established as a jointly venture by China State Shipbuilding
Corporation, China CSSC Holdings Ltd, and Mitsui Engineering &
Shipbuilding Co Ltd. CMD is equipped with large NC equipment and
large modern test equipment, and manufactures low speed diesel
engines with cylinder bores of 600 mm or larger for ships requiring a
large propulsive power. By 2010, after completion, the annual
throughput will reach three million horsepower. CMD will become the
core and central power in the area of manufacturing high-powered
low-speed diesel engines in China.
www.cssc.net.cn


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