The European Commission recently approved the proposal to form a joint venture between China Shipbuilding Industry Corporation, Finland's Wärtsilä and Japan's Mitsubishi Heavy Industries. The joint venture is located in Qingdao and will mainly produce marine low-speed diesel engines. As one of the core components of the shipbuilding industry, the marine engine market has seen a surge in demand as the Chinese shipbuilding industry thrives.
Wärtsilä said in the statement that the joint venture company named Qingdao Qi Yao Wäh Lan Ling Ling Linshan Marine Diesel Engine Co., Ltd. will supply the engine to the rapidly expanding Chinese shipyard. The joint venture's plant is expected to begin production in the fourth quarter of 2008.
In September last year, the Shanghai Marine Diesel Engine Research Institute revealed that Finland's Wärtsilä Group plans to team up with CSIC and Japan's Mitsubishi Heavy Industries to form a new joint venture to enter the large-scale low-speed marine diesel engine market in China. The joint venture contract was signed by Qingdao Qi Yaolinshan Power Development Co., Ltd. and Panda Xinke Co., Ltd. Among them, Qingdao Qiyao is a joint venture between Yichang Marine Diesel Engine Factory and Shanghai Marine Diesel Engine Research Institute under CSIC; Panda Shinco is a joint venture between Wärtsilä and Mitsubishi Heavy Industries.
According to the joint venture contract, Qingdao Qi Yao and Panda Xinke will establish Qi Yao Wah Ceylon Lingzhonglin Marine Diesel Engine Co., Ltd. in Qingdao, and use the technology and license of Wärtsilä and Mitsubishi Heavy Industries to develop, test, trial, produce and sell. Low speed marine diesel engine. CSIC has planned a ship supporting industrial cluster in Qingdao.
Thanks to the active shipping market and the booming domestic economy, the Chinese shipbuilding industry is rapidly emerging. In terms of the number of new ship orders, China has surpassed South Korea for three consecutive months. In the first quarter of this year, it has reached 6 million revised gross tons (CGT), which is 1.6 million more tons than the Korean shipbuilding industry. South Korea, which surpassed the first major shipbuilding power, has become the country with the largest number of orders in the world.
The development of the shipbuilding industry has also boosted the rapid growth of the ship supporting industry. However, the production capacity of China's marine low-speed diesel engines is far lower than that of Japan and South Korea. To this end, the relevant departments have requested in the Medium- and Long-Term Plan for the Shipbuilding Industry to actively guide the entry of foreign capital and social capital, and to improve the level of localization of key marine equipment through the introduction of technology, digestion and absorption and re-innovation.
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