Wärtsilä CME Zhenjiang Propeller Co Ltd inaug...

Wärtsilä Corporation, Press release, 29 June 2011

About 20 per cent of the world's new build vessels use controllable pitch
propellers of the type manufactured in this new factory. While most of the
propellers will be sold to the rapidly growing Chinese market, significant
potential is also foreseen in other global markets as well.
Wärtsilä CME Zhenjiang Propeller Co Ltd, the joint venture company of Wärtsilä
Corporation and Zhenjiang CME Ltd, today inaugurated its new manufacturing
facilities for controllable pitch (CP) propellers in Zhenjiang, China. Wärtsilä
CME has invested EUR 12 million in these state-of-the-art facilities, which was
announced last October.
Wärtsilä CME Zhenjiang Propeller is the first company in China to manufacture
Wärtsilä designed hydraulically operated CP propellers. The first deliveries
from the new factory are planned to take place later this year. Wärtsilä CP
Propellers offer excellent efficiency and manoeuvrability and are ideal
solutions for ships requiring frequent port calls.
"Most ships are today built in Asian shipyards, and China has emerged as the
world's primary shipbuilding nation. We have taken consistent steps to broaden
our presence and production capacity in China, close to our marine customers.
The relocation of our Ship Power management team to offices in Shanghai in 2008
further emphasises Wärtsilä's commitment to China and the Asian markets," said
Ole Johansson, President & CEO of Wärtsilä Corporation, at the inauguration
event in Zhenjiang on 29 June 2011.
"The main goal of China's shipbuilding sector over the coming five years is to
vigorously develop the quality and local availability of its marine and offshore
equipment. As one of the largest shipbuilding groups in China, CSSC looks
forward to a successful and comprehensive strategic cooperation with Wärtsilä,
with the inauguration of this new CPP production unit of Wärtsilä CME Zhenjiang
Propeller Co. Ltd as a promising starting point," says Mr Wu Qiang, Vice
President of CSSC.

The new factory provides the capability to assemble and machine all sizes of
controllable pitch propellers. The specialized in-house bronze castings are
supplied from an existing foundry located in the company's fixed pitch propeller
factory. Wärtsilä is able to offer a uniquely wide range of CP propellers with
an output from 1.5 to 60 MW. The majority of the new factory's manufacturing
equipment was transferred from the Wärtsilä factory in Drunen, the Netherlands,
where production was closed in 2010.
Serving both Chinese and global markets
Most of the propellers produced in the new factory will be sold to the rapidly
growing Chinese markets, with some 30 percent of the production likely to be
exported. As about 20 percent of the world's new build vessels use CP propellers
of the type manufactured in the new factory, Wärtsilä foresees significant
potential in all global markets in addition to the Chinese market.
China has become the leading ship building country in the world. In 2010, China
secured the majority of global new building orders. Last year, Chinese ship
owners were the most active, ordering more than 20 percent of all vessels
ordered.
The agreement to manufacture controllable pitch propellers was signed between
Wärtsilä and Zhenjiang CME Ltd, a subsidiary of China State Shipbuilding
Corporation (CSSC), in October 2010. The joint venture company, Wärtsilä CME
Zhenjiang Propeller Co Ltd, is located in Zhenjiang, Jiangsu province and was
established in 2004 between Wärtsilä, with a 55 percent share, and Zhenjiang CME
Ltd with 45 percent. The joint venture has grown rapidly, to the point that it
is now the biggest manufacturer and supplier of fixed pitch (FP) propellers in
China, and one of the biggest in the world.

Wärtsilä in China

Wärtsilä has been present in China for more than 20 years, through its fully
owned subsidiary and long-term licensing agreements. To serve the world's
largest shipbuilding region, Wärtsilä has established  joint ventures for
propeller and auxiliary generating set production with leading Chinese
shipbuilding groups. Wärtsilä also manufactures thrusters at its 100 percent
owned company facilities, while low-speed engines are produced via a joint
venture operation.

In the marine market, the leading Chinese ship owners are Wärtsilä customers. In
the energy markets, Wärtsilä has delivered altogether 3,500 MW of power plants
to China. Wärtsilä Services provides service and maintenance for its customers
from five locations in China, the largest of which is in Shanghai.

Including Wärtsilä joint venture companies, there are altogether more than 1800
Wärtsilä employees working in China today. Wärtsilä CME in Zhenjiang currently
has 470 employees. The commencement of CP propeller production will slightly
increase the number of employees.

Picture of FPP and CPP factories
Caption: FPP factory on the left was inaugurated in 2007, on the right is the
new CPP factory.
Pictures from inauguration ceremony will be available in this press release
atwww.wartsila.com later today.

For further information, please contact:
Mr Arto Lehtinen
Vice President, Product Centre Propulsion
Wärtsilä Corporation
Tel: [phone]
[e-mail]

Ms Tuula Franck
Senior Manager, Media & Stakeholder Relations
Wärtsilä Corporation
Tel: [phone]
[e-mail]

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximises the environmental and economic performance of the
vessels and power plants of its customers. In 2010, Wärtsilä's net sales
totalled EUR 4.6 billion with more than 17,500 employees. The company has
operations in 160 locations in 70 countries around the world. Wärtsilä is listed
on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com




FPP and CPP factories in China: 


http://hugin.info/131481/R/1526587/462277.jpg




This announcement is distributed by Thomson Reuters on behalf of 
Thomson Reuters clients. The owner of this announcement warrants that: 
(i) the releases contained herein are protected by copyright and 
    other applicable laws; and 
(ii) they are solely responsible for the content, accuracy and 
     originality of the information contained therein. 
    
Source: Wärtsilä Oyj Abp via Thomson Reuters ONE

[HUG#1526587]