2-Stroke Engine Joint Venture of Wärtsilä and CSSC to Start Working

By Finance

Wärtsilä and China State Shipbuilding Corporation (CSSC) have concluded a joint venture contract for the assumption of Wärtsilä’s 2-stroke engine operations. The agreement that was made public in July 2014 has now come to its final stage. Once the necessary government and merger control official permissions have been obtained, the formal termination of business operations happened on 19 January 2015. CSSC possesses 70% of the company and Wärtsilä possesses the remaining 30%. The new company’s name is Winterthur Gas & Diesel Ltd. (WinGD). The headquarters of the latter is in Winterthur, Switzerland but it has affiliates in Japan, China and South Korea.

The new company takes control of the Wärtsilä’s 2-stroke engine technology. Both partners approve the advancement and development of sales of that technology. Wärtsilä will use its international service network to provide maintenance for the engines. The engine’s market positions will be supported through the joint venture between the two companies. CSSC is the biggest shipbuilding company in China and maintains a worldwide trade with ships and connected products. The cooperative action will increase the speed of product advancement and will present vital engine technologies faster. On their turn Wärtsilä’s clients will get advantage of the bigger market spread-out and the international service network that offers support throughout the different stages of the cycle.

According to Mr Martin Wernli, CEO, WinGD, the new company gives a significant chance of both partners. The joint-venture is on the verge of a bright future for the engine. Fuel economy and observation of environmental obligations are the root causes behind the advancement of the international shipping industry. The purpose of WinGD to use advanced products is made viable through the process of combining Wärtsilä’s advanced technologies and CSSC’s industrial power.

Source: Wartsila