Wärtsilä - Company Announcement

Wärtsilä establishes joint venture with China State Shipbuilding Corporation - expands range of engines manufactured in China

Wärtsilä Corporation, Company announcement, 18 July 2014 at 8:10 am EET

Wärtsilä establishes joint venture with China State Shipbuilding Corporation -
expands range of engines manufactured in China

Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an
agreement to establish a joint venture for manufacturing medium and large bore
medium speed diesel and dual-fuel engines. The CSSC Wärtsilä Engine (Shanghai)
Co. Ltd factory will be located at Lingang, Shanghai and is expected to have its
first engine ready for delivery by the end of 2015. The company will in
particular target the growing offshore and LNG markets, as well as the market
for very large container vessels. The Wärtsilä share of the joint venture is 49
per cent and the size of Wärtsilä's equity investment is approximately EUR 12
million.

The new joint venture company, CSSC Wärtsilä Engine (Shanghai) Co. Ltd, together
with two other already existing Wärtsilä joint ventures for medium speed engine
production, will now be able to offer the most complete portfolio of Wärtsilä
branded medium speed engines in China. It will also be the first China-based
company able to manufacture locally large bore medium speed diesel and dual-fuel
engines. By being able to produce and deliver locally, the new joint venture
will provide CSSC Group and other Chinese yards with closer access to the
Wärtsilä range of engines with the benefits of faster delivery times and
competitive pricing.

When in full production, the company will manufacture Wärtsilä 26 engines in V-
configuration, Wärtsilä 32 main and auxiliary engines, Wärtsilä 46 engines and
the Wärtsilä 34DF and Wärtsilä 46DF dual-fuel engines. With LNG becoming
increasingly popular as a marine fuel and dual-fuel capability being of
increasing importance for both economic and environmental reasons, Wärtsilä's
industry leading dual-fuel offering is a major consideration for Chinese yards."This agreement marks an historic moment for our two companies, and it opens the
door to exciting new opportunities. China is today the largest shipbuilding
nation on earth, and CSSC is the largest shipbuilding company in China. Wärtsilä
offers the marine industry's broadest scope of products, solutions and services,
and through this joint venture our two companies can deliver leading edge engine
technology that can improve efficiencies and lower operating costs for owners
and operators everywhere," says Jaakko Eskola, Senior Executive Vice President &
President, Ship Power, Wärtsilä Corporation."This investment demonstrates Wärtsilä's commitment to supply competitive engine
products to its customers in China. Furthermore, it is fully aligned with the
central government of China's 12th Five-Year Plan to significantly increase
environmental efficiency and the locally produced content of marine equipment,"
adds James Han, President of Wärtsilä China."It is a great honour to sign this joint venture agreement with Wärtsilä.
Wärtsilä is the leading innovator and the technology leader in developing
economic and environmentally sustainable solutions. We look forward to a bright
future together," says Wu Qiang, Vice President, CSSC.

CSSC is one of the largest shipbuilding groups in the world, with ten yards in
China accounting for approximately 25 per cent of the country's newbuild
capacity. In 2004 Wärtsilä set up its first joint venture with the CSSC Group
when establishing Wartsila CME Zhenjiang Propeller Co Ltd for propeller
production.


Wärtsilä in China

Wärtsilä has been present in China for more than 20 years, through its fully
owned subsidiary and long-term licensing agreements. To serve the world's
largest shipbuilding region, Wärtsilä has established joint ventures for
propeller, auxiliary engines and mid-size medium-speed engine production with
strong Chinese industrial groups and a joint venture for automation services.
Wärtsilä also manufactures thrusters at its fully owned company facilities,
while low-speed engines are produced by eight licensees and by a joint venture
company. The acquisitions of Cedervall in 2011 and Hamworthy in 2012 have
further strengthened Wärtsilä's leading position in global markets, notably in
marine services and offshore, marine gas applications, as well as environmental
solutions.

In the marine market, the leading Chinese ship owners and shipyards are
Wärtsilä's customers. Wärtsilä Services provides service and maintenance for its
customers from eight locations in China, the largest of which is in Shanghai. In
the energy markets, Wärtsilä has delivered power plants producing a total of
3500 MW of electricity to customers in China. Including Wärtsilä joint venture
companies, there are currently more than 2000 Wärtsilä employees working in
China.

For further information please contact:

Esa Kivineva
Vice President, Product Company Joint Ventures, Ship Power 4-stroke
Wärtsilä Corporation
Tel. + 358 10 709 5555
esa.kivineva@wartsila.com

Mr Atte Palomäki
Executive Vice President, Communications & Branding
Wärtsilä Corporation
Tel. +358 10 709 5599
atte.palomaki@wartsila.com



For investor information, please contact:

Ms Natalia Valtasaari
Director, Investor Relations
Wärtsilä Corporation
Tel. +358 10 709 5637
natalia.valtasaari@wartsila.com



Contact for Wärtsilä in China

James Han
President
Wärtsilä China Ltd.
Tel: +86-21-5858 5500 ext. 888
james.han@wartsila.com





About CSSC

China State Shipbuilding Corporation (CSSC) is a government-owned shipbuilding
conglomerate engaged in shipbuilding, ship-repair, shipboard equipment
manufacturing, and marine design and research in China. Through subsidiaries
CSSC provides tankers, containerships, passenger ferries, self-unloading ships,
deck machinery, lifeboats, diesel engines, and anchors. It also builds warships
for the Chinese Navy. In addition CSSC exports ships and other products
worldwide. Major enterprises include Shanghai Shipbuilding Company, Guangzhou
Shipbuilding Company, Jiujiang Shipbuilding Company, and the publicly traded
China CSSC Holdings Limited. CSSC was founded in 1999.
www.cssc.net.cn/en/



About Wärtsilä

Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximizes the environmental and economic performance of the
vessels and power plants of its customers. In 2013, Wärtsilä's net sales
totalled EUR 4.7 billion with approximately 18,700 employees. The company has
operations in more than 200 locations in nearly 70 countries around the world.
Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com



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