Wartsila and RSHI Group sign licence agreement

Wartsila and Jiangsu Rongsheng Heavy Industries Group Co Ltd (RSHI) have jointly signed a licence agreement for the manufacture and sale of Wartsila low-speed marine diesel engines by RSHI in China.

RSHI plans to build a new factory for the manufacture of low-speed engines in Hefei, Anhui Province, China. The factory will have a targeted annual production capacity of engines aggregating five million brake horsepower (3600 MW).

This licence agreement with RSHI will increase the manufacturing capacity for Wartsila low-speed marine engines in China to meet the rapidly growing demands of the Chinese shipbuilding industry.

The latest technology of low speed engines

The agreement grants RSHI the right to manufacture certain types of Wartsila modern low-speed engine types between 48 and 96 cm bore size at its works, Hefei Rong An Power Machinery Co Ltd in Hefei, Anhui. The first delivery of a Wartsila engine is scheduled by the end of 2009.

The licence agreement with Wartsila is an important milestone for the expansion of RSHI into the marine equipment business. This agreement will enable RSHI to produce today's most advanced low-speed diesel engines for its own shipyard as well as for external customers, securing RSHI's future leading role in the Chinese ship and engine building industries, said Mr Chen Qiang, President and Vice Chairman of the Board of RSHI.

RSHI is one of the most rapidly expanding shipyard conglomerates in China. It is a pleasure to work with RSHI on the new engine factory, which will fully start with the production of Wartsila common-rail low-speed engines. We look forward to a long-lasting fruitful partnership", said Mr Martin Wernli, President of Wartsila in Switzerland.

This licence agreement provides RSHI with the latest technology for low-speed diesel engines including the most modern electronically-controlled common-rail technology. Support for the manufacture of Wartsila low-speed engines will be provided by Wartsila's Switzerland company which is the group's centre of excellence for the design, development, research, marketing, licensing, servicing and support of Wartsila low-speed engines. Wartsila will also assist RSHI in setting up the new engine factory.