Shanghai: Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an agreement to establish a joint venture, which will take over Wärtsilä’s 2-stroke engine business. Through the agreement, CSSC will own 70% of the business through its affiliate CSSC Investment and Development Co. Ltd, while Wärtsilä will hold a 30% ownership position. The parties will co-operate in 2-stroke engine technology, marketing, sales, and service activities. The parties have agreed to transfer CSSC’s whole position as shareholder to a joint venture established by an entity connected with the Municipal Government of Shanghai and CSSC.
Responsibility for servicing Wärtsilä’s 2-stroke engines will remain with Wärtsilä Services through its global network.
The value of the transaction is approximately EUR46m. The closing of the transaction is subject to the required regulatory approvals, which are expected during the first quarter of 2015.
The joint venture will be domiciled in Switzerland, and the head office will remain at the present 2-stroke engine headquarters in Winterthur. The current 2-stroke engine business management team will remain in place.
The joint venture will assume ownership of Wärtsilä’s 2-stroke engine technology, and will continue to develop and promote sales of the engine portfolio with the full support of both partners.
“The objective of the partnership is to combine the strengths of the two partners, both of whom are major players in the global marine sector,” Wärtsilä said in a release. [18/07/14]