Wärtsilä and Zhenjiang sign licence agreement...

Wärtsilä Corporation, Press release, 8 April 2008

Wärtsilä and Zhenjiang CME Co Ltd (CME) have today jointly signed a
licence agreement for the manufacture and sale of Wärtsilä RT-flex
low-speed marine diesel engines by CME in China.

The agreement grants CME the right to manufacture all sizes of
Wärtsilä RT-flex modern low-speed engine types at its new factory in
Zhenjiang. However, CME will focus on engines of 50 cm cylinder bore
and smaller. The main attraction of the new licence agreement for CME
is the Wärtsilä RT-flex engines with common-rail technology. This is
the latest technology for low-speed diesel engines incorporating full
electronic control of engine processes.

The new manufacturing capacity of CME will make a significant
contribution to the delivery of Wärtsilä low-speed marine engines to
the rapidly growing shipbuilding industry in China.

The agreement was signed by Mr Yang Jia Feng, General Manager of CME,
and Mr Martin Wernli, President of Wärtsilä in Switzerland, during
the Wärtsilä Chinese Licence Conference held in the Lijiang in
northwestern Yunnan province.

"The new agreement with Wärtsilä is a welcome development for CME as
it makes it possible for our company to deliver today's most advanced
low-speed diesel engines to our shipyard customers. It will keep CME
at the forefront of marine equipment suppliers to the Chinese
shipbuilding industry", said Mr Yang Jia Feng.

"Wärtsilä already has a business partnership with CME in the
manufacture of propellers and it is a pleasure to be able to develop
this partnership further and to increase the manufacturing volume for
smaller Wärtsilä common-rail low-speed engines. We look forward to a
long-lasting fruitful partnership", said Mr Martin Wernli.

The new licensee is located at Zhenjiang in Jiangsu Province up the
Yangtze River from Shanghai. CME, as a subsidiary of China State
Shipbuilding Corporation (CSSC), has been manufacturing four-stroke
engines from another designer for many years, and is building a new
factory on a 250,000 m2 site at Zhenjiang for the manufacture of
low-speed engines. The first engines are planned to be completed in
the second half of 2009. The new factory will have an initial
capacity to build engines with an aggregate output of about 300,000
bhp (220 MW), later increasing to one million brake horsepower (735
MW).

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

Information on the joint venture company Wartsila CME Zhenjiang
Propeller Co Ltd can be found in the press release of 28 June 2007
at:
Wärtsilä opens a new propeller factory in China - production capacity
will double

Link to picture

Caption: The licence agreement for the manufacture and sale of
Wärtsilä RT-flex low-speed marine diesel engines by CME in China was
signed today. People in the picture are from left to right Mr Liu
Shuangzhi; General Manager, Purchasing Dept, China Shipbuilding
Trading Co Ltd (CSTC), Mr Yang Jia Feng; General Manager of CME, Dr
Martin Wernli; President of Wärtsilä in Switzerland and Mr Qin
Wenquan; General Manager, Hudong Heavy Machinery Co Ltd (HHM).


Media contact:

Martin Wernli
President
Wärtsilä Switzerland Ltd
Direct tel:       [phone]
e-mail:            [e-mail]

Yang Jia Feng
General Manager
Zhenjiang CME Co Ltd
Direct tel:       [phone]
e-mail:            [e-mail]


Marit Holmlund-Sund
Public Relations Manager
Wärtsilä Corporation
Direct tel:       [phone]
Direct fax:      [phone]
e-mail:            [e-mail]
Internet:          www.wartsila.com



About Wärtsilä Corporation:
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 more than 16,000 professionals manning
150 Wärtsilä locations in 70 countries around the world. Wärtsilä is
listed on The Nordic Exchange in Helsinki, Finland.
www.wartsila.com