On December 20, Yuchai and Wartsila met again in Zhuhai to conclude an agreement on establishing a medium-speed marine engine joint venture. Under the agreement, the two sides will join hands to build a medium-speed marine engine production base in Zhuhai. Present at the signing ceremony were leaders including Bj?rn Rosengren, CEO of Wartsila Corporation; Su Peng, vice president of Yuchai Group and Jiang Shihong, chairman of Yuchai Marine Power Co., Ltd. (YCMP) signed the agreement. Li Jia, member of the Standing Committee of the CPC Guangdong Provincial Committee; He Ningka, mayor of Zhuhai and Gu Tangshang, president of Yuchai Group.

Wartsila Yuchai Engine Co., Ltd., a medium-speed marine engine joint venture in Fushan Industrial Park, Doumen District, Zhuhai, is jointly invested in and established by Yuchais subsidiary YCMP and Wartsila. With a registered capital of 267 million yuan, the company will, after coming on stream, primarily manufacture Wartsila-branded W20, W26 and W32 medium-speed marine diesel engines which will be used as main power units and generating units. With a designed annual output of 400 units, the company is scheduled to go into operation in early 2014.

Gu delivered a speech, saying the strong combination? of Yuchai and Wartsila is the best interpretation of Yuchais mission of making the trust of partners and the public more valuable?, as well as a successful example of Chinese-foreign cooperation in advanced diesel engine technology and manufacturing. On the basis of deepening the cooperation in the permit of low-speed marine engine manufacturing, the two sides tied the knot to jointly develop the Chinese offshore engineering and marine power market and build Chinas most efficient high-end medium-speed marine engine manufacturing base.

Yuchai is Chinas largest high-speed marine engine manufacturer and the market leader, Rosengren said in a speech, adding the joint venture will build a world top medium-speed marine engine manufacturer from all aspects, Wartsila will bring the most advanced technology to China, Yuchai will employ its advantages in manufacturing, purchase and marketing to push forward the development of the joint venture, and the two sides will jointly create favorable operation environment and manufacture environment-friendly engines to meet the power demand of Chinas shipbuilding industry.

In 2009, Yuchai and Wartsila concluded an agreement on permitting low-speed marine engine manufacturing in their initial cooperation. So far, YCMP has been capable of manufacturing low-speed marine engines with a cylinder bore of ranging from 350mm to 820mm and a power of ranging from 3,475kW to 4,2750kW. After the project is complete, YCMP will become a wonder in Doumen, will not only boost Zhuhais industrial structure upgrading and industrial agglomeration effect, but also create exceptional conditions for Zhuhai to develop offshore engineering equipment manufacturing in the future and lay a solid foundation for Zhuhai to participate in medium and high-end global industrial competition.

(Wen Zhenghua)