(EnergyAsia, September 29) — Finland’s Wartsila said it has begun construction on its joint venture generating set factory with Shanghai Marine Diesel Engine Research Institute (SMDERI) in Shanghai, China’s main commercial city. SMDERI is a subsidiary company of the China Shipbuilding Industry Corporation (CSIC).

The new JV firm, W’rtsil’ Qiyao Diesel Company Ltd (Shanghai), will initially manufacture W’rtsil’ Auxpac W20 diesel generating sets, which will be sold through W’rtsil”s global sales network. Production will begin from mid-2006.


“Our goal is to boost W’rtsil”s share of the ship genset market. The focus for shipbuilding is firmly in Asia and shipbuilding in China is expanding at an extremely fast rate. Local presence close to our customers will strengthen our position in the intense competition for gensets,” said executive vice president Mikael M’kinen.


The newly acquired site area covering 30,000 sq m is located in south-east Shanghai in the Lingang Industry Zone. The factory includes offices covering some 8,000 sq m and will employ more than 100 people at its peak.


SMDERI is well known for its diesel engines, engine room automation equipment, noise and vibration reduction solutions and for its petrochemical machinery products. The number of employees is 800.


China Shipbuilding Industry Corporation (CSIC) is one of the largest groups in China in the field of military and merchant ships, marine engineering and marine equipment which it designs, manufactures and sells. CSIC consists of 48 industrial enterprises, 28 scientific technological research institutes and 15 shareholding companies. In 2004 CSIC’s ship deliveries totalled 2.14 million DWT. It currently has an order book of 10.2 million DWT. The total number of employees is 170,000.


W’rtsil’ Corporation is the leading ship power supplier for builders, owners and operators of vessels and offshore installations. W’rtsil’ has a global service network to take complete care of customers’ ship machinery at every lifecycle stage in more than 60 countries.


W’rtsil’ is a leading provider of power plants, operation and lifetime care services in decentralised power generation. Last year, it generated net sales totalling EUR 2.5 billion.