CSSC has purchased 70% of Wärtsilä’s two-stroke engine business for $62m, with the new company to be based in Switzerland once the deal is completed. Completion is expected in first quarter 2015, subject to regulatory approval. Once established, the two companies will co-operate on the construction, marketing, sales and service of 2-stroke engine technology.
"CSSC shares our vision for the future of the 2-stroke marine engine market,” said senior executive vp and president of Wärtsilä Ship Power Jaakko Eskola. “By enhancing the sales volume of Wärtsilä's 2-stroke engines, product development can be accelerated and critical new engine solutions can be brought to the market much faster than earlier.”
Meanwhile, Wärtsilä and CSSC have also entered into a separate joint venture for the construction of diesel and dual-fuel engines in Shanghai. The joint venture, CSSC Wärtsilä Engine (Shanghai) Co., will be owned 49% by Wärtsila, amounting to an equity investment of $16m.
It will have the capability Wärtsilä 26 engines in V-configuration, Wärtsilä 32 main and auxiliary engines, Wärtsilä 46 engines and the Wärtsilä 34DF and Wärtsilä 46DF dual-fuel engines locally, enabling for more competitive pricing and reduced delivery times.
“China is today the largest shipbuilding nation on earth, and CSSC is the largest shipbuilding company in China,” Eskola continued. “Wärtsilä offers the marine industry's broadest scope of products, solutions and services, and through this joint venture our two companies can deliver leading edge engine technology that can improve efficiencies and lower operating costs for owners and operators everywhere.”