Shanghai: large diesel engines manufacturer MAN Diesel has signed a licence agreement with one of China's largest engine manufacturers, the Weichai Holding Group, for the production of type 27/38 and 32/40 MAN Diesel four-stroke engines.
The future MAN Diesel licensee is Shandong Juli, a subsidiary of the Weichai Holding Group. The company already produces small-size medium-speed diesel engines with an output of up to 1,900 kW. The company's current production is 7,000 units per year, the majority of which are used as propulsion engines in ships.
Shandong Juli is said to have a very significant market share in the region for this particular sector, but has so far not had any diesel engines capable of using heavy-fuel oil in its portfolio of products. With the licensed production of MAN Diesel engines, Shandong Juli will now be able to gain a share of this market too and expand its portfolio of engines to include models with an output of 2,000 kW and beyond. This had become necessary since Shandong Juli's customers are building increasingly large ships that require a commensurately high level of propulsion.
As part of the production of MAN Diesel engines under licence, Shandong Juli will be investing in a new large-component foundry as well as a new facility for processing, assembling and testing located in the immediate vicinity of the coast.
Shandong Juli's production and testing of the first engine is scheduled for the end of 2009. [02/05/08]
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