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Wärtsilä Oyj Abp (HEL:WRT) Wärtsilä Corporation, Press release,1 October 2008 at 9 am EET
Wärtsilä-Hyundai Engine Company, a joint venture between Wärtsilä and Hyundai Heavy Industries (HHI), today inaugurated its new factory in Korea. The 50/50 joint venture company manufactures Wärtsilä 50DF dual-fuel engines for LNG carriers and other marine applications. The optimal capacity of the factory is 100-120 engines a year.
Speaking at the inauguration event, Mr Ole Johansson, President & CEO of Wärtsilä Corporation addressed the need for new LNG terminals to fulfil the growing demand for gas and LNG vessels. "The present LNG fleet of 260 vessels needs to increase to over 700 vessels by the year 2030. The introduction of new LNG terminals has experienced delays due, among other things, to the lack of availability of equipment and staff. One real alternative to land-based terminals lies in the development of offshore floating projects. Our joint-venture company has just recently received a major order for this type of project," said Mr Ole Johansson. "We see great potential in this market in the long term," he continued.
"Natural gas is a clean source of energy, and increasingly relevant as countries around the world face the challenge of decreasing emissions. With our dual-fuel engines, we will be ready to anticipate and follow the Tier 3 requirements of the IMO regulations from the year 2016. Thus, by adopting our engines, produced here, as marine propulsion machinery, this internationally stipulated emission standard can be met," said Mr O.S. Kwon, CEO of Wärtsilä-Hyundai Engine Company in his welcoming speech.
During the inauguration, the first engine manufactured by the joint venture company was started by Mr Ole Johansson, President and CEO of Wärtsilä and Dr Keh-Sik Min, Vice Chairman and CEO of HHI.
Wärtsilä 50DF pioneered an industry change
The Wärtsilä 50DF dual-fuel engine has pioneered an industry change. It has allowed the shipping industry to move away from traditional steam turbine machinery to a dual-fuel-electric concept having the benefits of much better operating economy and lower exhaust emissions. The engine can be run either on natural gas, marine diesel oil or on heavy fuel oil. The engine can smoothly switch between fuels during engine operation and is designed to give the same output regardless of the fuel.
The joint venture manufactures Wärtsilä 50DF dual-fuel engines for the Korean, Japanese, Chinese and Taiwanese shipbuilding markets. Korea, as today is the main market, has a market share exceeding 80 percent of the global LNG shipbuilding market.
The joint venture will utilize the established global service networks of Wärtsilä and HHI, covering some 80 countries, to take complete care of customers' ship machinery needs at every stage.
In January 2007 Wärtsilä and Hyundai Heavy Industries Co. Ltd signed an agreement to set up a 50/50-owned joint venture to manufacture dual-fuel engines in Korea for LNG carriers and other marine applications. In September 2007, the ground breaking ceremony for the new factory was held. In July 2008, the company received a significant order from Samsung Heavy Industry to supply 16 engines for four ships. Today, Wärtsilä-Hyundai Engine company employs 130 people in Mokpo, Korea, with this number to be increased to 210 when the factory is fully ramped up.
For further information please contact:
Mr Jaakko Eskola Group Vice President, Wärtsilä Ship Power Tel +358 10 7095626
Mr Atte Palomäki Group Vice President, Communications, Wärtsilä Corporation Tel +358 40 5476390
Mr Michael Lok Director, Business Management, Wärtsilä-Hyundai Engine Company Tel: +82 61 983 1160
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About Hyundai Heavy Industries Hyundai Heavy Industries Co., Ltd (HHI) is one of the world's leading industrial companies, with 26,000 employees and net sales of USD 16.2 billion in the fiscal year 2007. HHI is also the world's number one shipbuilder and the world's largest manufacturer of two stroke diesel engines for ship propulsion and power generation. http://english.hhi.co.kr
About Wärtsilä Corporation Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 17,000 professionals manning 170 Wärtsilä locations in close to 70 countries around the world. In 2007 Wärtsilä generated net sales totalling EUR 3.8 billion. Wärtsilä is listen on the Nordic Exchange in Helsinki, Finland http://www.wartsila.com/
