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Ship power maker targets growing Chinese market

By Qu Xiaozhen (China Daily)
Updated: 2008-07-04 13:55

Wartsila, one of the world's major ship power suppliers and manufacturers, is moving to tap into the vast Chinese shipbuilding sector, banking on its advanced technology and services.

"The commitment by the Chinese government to make China the leading shipbuilder in the world is beginning to show. New shipyards are being opened and developed and we have seen the flow of shipbuilding orders moving in this direction," said Ole Johansson, president and CEO of Wartsila Corp.

"We have every reason to believe that by 2015, China will be the leading shipbuilder in the world," said Johansson. The Finnish company's core business provides complete lifecycle power solutions.

Johansson said the products and technologies created by his company are cheap and environmentally friendly. CO2 reduction has always been a major focus for large diesel engines, Johansson said.

"We all know that shipping contributes to emissions. That's why we look at it as our responsibility to create technologies that reduce emissions. We serve shipyards from all over the world, offering standardized services," he said. "Chinese shipyards have to compete on the same terms and conditions as anyone else."

Wartsila entered China in 1991. "In recent years, we've made big investments to establish three joint venture companies, one wholly owned company and several licensees in China," said Johansson.

On April 8, Wartsila and Zhenjiang CME Co Ltd (CME) in Jiangsu province jointly signed a licensing agreement for the manufacture and sale of Wartsila RT-flex low-speed marine diesel engines by CME in China.

The agreement grants CME the right to manufacture all sizes of Wartsila RT-flex low-speed engine types at its new factory in Zhenjiang.

According to the mid to long-term shipbuilding plans approved by the State Council on August 16, 2006, the localization rate of major ship components built in China has to reach 60 percent by 2010 and up to 80 percent by 2015.

"This will provide a golden opportunity for Wartsila China to offer a more comprehensive product portfolio and service package to customers through our advanced manufacturing facilities and large vendor base," he said.