Wärtsilä Qiyao generating set factory inaugurated in China

29 June, 2006, The new factory for Wärtsilä Auxpac marine generating sets in China is inaugurated today by Wärtsilä Qiyao Diesel Company Ltd (Shanghai), the joint venture between Wärtsilä Corporation and the Shanghai Marine Diesel Engine Research Institute (SMDERI).

“China is one of the leading shipbuilding countries in the world and its shipbuilding will grow very fast. For Wärtsilä this joint venture is a major step in our strategy to be close to the customers in China and increase our global market share in auxiliary engines”, says Mr Ole Johansson, President & CEO of Wärtsilä Corporation.

“There has been long-term good relationship between CSIC and Wärtsilä. The setup of Wärtsilä Qiyao Diesel Company Ltd. (Shanghai) is another successful example of mutual benefit, combined with the strength of both parties. This new factory would definitely have the capability to manufacture the world class diesel products, which is significant for the development of Wärtsilä diesel engines in China, as well as the growth of China shipbuilding industry”, says Mr Li Chang Yin, General Manager of CSIC

Wärtsilä and SMDERI, an underlying company of China Shipbuilding Industry Corporation (CSIC), signed the 50/50 joint venture contract in 2005 to establish Wärtsilä Qiyao Diesel Company Ltd (Shanghai). The total investment is approximately EUR 10.0 million in the company, which will manufacture Wärtsilä Auxpac 20 and Auxpac 26 diesel generating sets.

The new assembly factory manufactures Wärtsilä Auxpac diesel generating sets for the growing shipbuilding market in China and also exports them to other countries through Wärtsilä’s global sales network. These generating sets are used in all types of ships for generating electricity. The factory is expected to deliver more than 100 Auxpac sets during 2007 focusing mainly on Wärtsilä Auxpac 20. The production of Auxpac 26 will start by the end of 2007. The annual production capacity will be some 300 to 350 sets.

Location close to shipyards
The new factory is located in the Shanghai’s Lingang Industry Zone, and it will employ 80 people by the end of this year, though more will be employed as manufacturing is built up.

Pre-engineered means competitive price
Wärtsilä Auxpac marine generating sets are supplied as pre-engineered packages for the generation of electrical power on board all types and sizes of ships. The main advantage of Wärtsilä Auxpac is its pre-engineered and pre-specified solutions with a limited number of options. This means that the generating sets can be built for a competitive price.

Wärtsilä Auxpac – Plug-in power
For ship owners, Wärtsilä Auxpac is an ideal choice because, quite simply, the Wärtsilä engines on which it is based has proven itself as reliable, fuel and lubricating oil efficient, maintenance-friendly engines in numerous applications over many years. For shipyards, it gives the best power-to space ratio on the market and is actually the most compact generating set in its class. Essentially, this means that the Auxpac is both easy and less time-consuming to install and can save valuable weight in the ship.

Technical information
There are two ranges of Wärtsilä Auxpac sets: the high-speed range covering an electrical output from 60 to 1630 kWe, and the medium-speed range of 520 to 2850 kWe output. The Wärtsilä Auxpac 20 and 26 sets manufactured by Wärtsilä Qiyao are based on the well-proven Wärtsilä 20 and Wärtsilä 26 engines which run on heavy fuel oil, and deliver from 520 to 2850 kWe. Typical installations for the Auxpac include general cargo vessels, container ships, product tankers, bulk carriers and VLCCs.

Delivered ready for installation and outfitted with all necessary ancillary equipment such as pumps, electrical and control systems, Auxpac sets are put through well-defined factory-acceptance tests which can include parallel running when multiple sets are being supplied. They are also designed for resilient mounting in the ship’s hull for easy installation and alignment and for lower structure-borne noise.

The delivery of Wärtsilä Auxpac generating sets also facilitates the provision of comprehensive, informative documentation for installation, operation and maintenance. Installation information can include the delivery of 3D CAD models in various formats, including the popular Tribon format.

First orders
The first Wärtsilä Auxpac 20 sets were delivered to Chinese shipyards from Wärtsilä’s Vaasa factory in Finland in April 2005. It is a new 4000-tonne heavy-lift ship built at the Jing Jiang Eastern Shipyard for Guangzhou Salvage Bureau (under Ministry of Communications).

The first Auxpac generating sets by Wärtsilä Qiyao will be delivered in October 2006 to the 12,000 dwt Product Oil Tanker built at Jiujiang Yinxing shipyard in China for Capital Ship Management, Greece.

About SMDERI
Shanghai Marine Diesel Engine Research Institute is well known for its diesel engines, engine room automation equipment, noise and vibration reduction solutions, and for its petrochemical machinery products. It has some 1800 employees.

About CSIC
China Shipbuilding Industry Corporation (CSIC) is the largest group in China in the field of military and merchant ships, marine engineering and marine equipment which it designs, manufactures and sells. CSIC consists of more than 100 subsidiaries and the total number of employees is 160,000.

About Wärtsilä Corporation
Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 12,000 professionals manning 130 Wärtsilä offices in over 60 countries around the world.
www.wartsila.com

Contact Information

Marit Holmlund-Sund

Public Relations Manager

Wärtsilä Corporation

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