Dalian: Finnish engine firm Wärtsilä will divest its shares in the Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co Ltd (QMD), the joint venture company established for manufacturing large low-speed marine diesel engines. Wärtsilä’s shares in the joint venture will be transferred to the current majority shareholder, Qingdao Qiyao Linshan Power Development Co Ltd, a company fully owned by China Shipbuilding Industry Corporation.
The divestment comes as a result of the announcement made a week ago regarding Wärtsilä and China State Shipbuilding Corporation (CSSC) joining forces to establish a new joint venture, which will take over Wärtsilä’s 2-stroke engine business. Through this agreement, CSSC will own 70% of the business through its affiliate CSSC Investment and Development, while Wärtsilä will hold a 30% ownership position.
QMD will continue to manufacture Wärtsilä low-speed marine engines under license from Wärtsilä via the new joint venture with CSSC. The currently valid license agreement will not be affected by the transaction. [25/07/14]