Shanghai: Wärtsilä has signed an agreement with Zhenjiang CME to invest EUR12m in a state-of-the-art manufacturing facility. The investment includes the construction of a new 8,000 m2 factory at the same location as the existing fixed pitch propellers (FP Propellers) factory.
The majority of the equipment needed will be relocated from the factory in Drunen, the Netherlands, where Wärtsilä has announced that production activities will be ended by the end of this year. Wärtsilä will continue to design and produce some CP propellers in Europe, mostly for specific projects. However, the majority of the products will be manufactured in the new CP propellers factory in China.
Inauguration of the new Wärtsilä CME Zhenjiang Propeller Co factory and the first deliveries of propellers, are planned for the second quarter 2011.
"The introduction of CP propeller manufacturing technology into China is in line with our expectations and plans related to the growth of shipbuilding in China. Capacity in the industry is growing very fast, and Chinese shipyards are building technically more demanding ships. Together with our joint venture company, we are now able to offer advanced propulsion systems for any required application. We will still continue producing part of the special CP propellers in Europe, where we will also maintain all our Research & Development activities", says Lars Hellberg, Group Vice President, Industrial Operations of Wärtsilä Corporation.
Most of the propellers will be sold to the rapidly growing Chinese markets. It is estimated that about 30 per cent of production of Wärtsilä CME Zhenjiang Propeller Co Ltd will be exported. As about 20 per cent of the world's newbuildings use CP propellers of the type manufactured in the new factory, Wärtsilä states that it foresees significant potential in all global markets in addition to the Chinese market. [01/10/10]
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