Asia PR News

HELSINKI, June 29 /PRNewswire-AsiaNet/ –

The new factory for Wartsila Auxpac marine generating sets in China is
inaugurated today by Wartsila Qiyao Diesel Company Ltd (Shanghai), the joint
venture between Wartsila Corporation and the Shanghai Marine Diesel Engine
Research Institute (SMDERI).

"China is one of the leading shipbuilding countries in the world and its
shipbuilding will grow very fast. For Wartsila this joint venture is a major
step in our strategy to be close to the customers in China and increase our
global market share in auxiliary engines", says Mr. Ole Johansson, President &
CEO of Wartsila Corporation.

"There has been long-term good relationship between CSIC and Wartsila. The
setup of Wartsila Qiyao Diesel Company Ltd. (Shanghai) is another successful
example of mutual benefit, combined with the strength of both parties. This new
factory would definitely have the capability to manufacture the world class
diesel products, which is significant for the development of Wartsila diesel
engines in China, as well as the growth of China shipbuilding industry", says
Mr. Li Chang Yin, General Manager of CSIC.

Wartsila and SMDERI, an underlying company of China Shipbuilding Industry
Corporation (CSIC), signed the 50/50 joint venture contract in 2005 to
establish Wartsila Qiyao Diesel Company Ltd (Shanghai). The total investment is
approximately EUR 10.0 million in the company, which will manufacture Wartsila
Auxpac 20 and Auxpac 26 diesel generating sets.

The new assembly factory manufactures Wartsila Auxpac diesel generating
sets for the growing shipbuilding market in China and also exports them to
other countries through Wartsila’s global sales network. These generating sets
are used in all types of ships for generating electricity. The factory is
expected to deliver more than 100 Auxpac sets during 2007 focusing mainly on
Wartsila Auxpac 20. The production of Auxpac 26 will start by the end of 2007.
The annual production capacity will be some 300 to 350 sets.

Location close to shipyards
The new factory is located in the Shanghai’s Lingang Industry Zone, and it
will employ 80 people by the end of this year, though more will be employed as
manufacturing is built up.

Pre-engineered means competitive price
Wartsila Auxpac marine generating sets are supplied as pre-engineered
packages for the generation of electrical power on board all types and sizes of
ships. The main advantage of Wartsila Auxpac is its pre-engineered and
pre-specified solutions with a limited number of options. This means that the
generating sets can be built for a competitive price.

Wartsila Auxpac - Plug-in power
For ship owners, Wartsila Auxpac is an ideal choice because, quite simply,
the Wartsila engines on which it is based has proven itself as reliable, fuel
and lubricating oil efficient, maintenance-friendly engines in numerous
applications over many years. For shipyards, it gives the best power-to space
ratio on the market and is actually the most compact generating set in its
class. Essentially, this means that the Auxpac is both easy and less
time-consuming to install and can save valuable weight in the ship.

Technical information
There are two ranges of Wartsila Auxpac sets: the high-speed range covering
an electrical output from 60 to 1630 kWe, and the medium-speed range of 520 to
2850 kWe output. The Wartsila Auxpac 20 and 26 sets manufactured by Wartsila
Qiyao are based on the well-proven Wartsila 20 and Wartsila 26 engines which
run on heavy fuel oil, and deliver from 520 to 2850 kWe. Typical installations
for the Auxpac include general cargo vessels, container ships, product tankers,
bulk carriers and VLCCs.

Delivered ready for installation and outfitted with all necessary ancillary
equipment such as pumps, electrical and control systems, Auxpac sets are put
through well-defined factory-acceptance tests which can include parallel
running when multiple sets are being supplied. They are also designed for
resilient mounting in the ship’s hull for easy installation and alignment and
for lower structure-borne noise.

The delivery of Wartsila Auxpac generating sets also facilitates the
provision of comprehensive, informative documentation for installation,
operation and maintenance. Installation information can include the delivery of
3D CAD models in various formats, including the popular Tribon format.

First orders
The first Wartsila Auxpac 20 sets were delivered to Chinese shipyards from
Wartsila’s Vaasa factory in Finland in April 2005. It is a new 4000-tonne
heavy-lift ship built at the Jing Jiang Eastern Shipyard for Guangzhou Salvage
Bureau (under Ministry of Communications).

The first Auxpac generating sets by Wartsila Qiyao will be delivered in
October 2006 to the 12,000 dwt Product Oil Tanker built at Jiujiang Yinxing
shipyard in China for Capital Ship Management, Greece.

About SMDERI
Shanghai Marine Diesel Engine Research Institute is well known for its
diesel engines, engine room automation equipment, noise and vibration reduction
solutions, and for its petrochemical machinery products. It has some 1800
employees.

About CSIC
China Shipbuilding Industry Corporation (CSIC) is the largest group in
China in the field of military and merchant ships, marine engineering and
marine equipment which it designs, manufactures and sells. CSIC consists of
more than 100 subsidiaries and the total number of employees is 160,000.

About Wartsila Corporation
Wartsila enhances the business of its customers by providing them with
complete lifecycle power solutions. When creating better and environmentally
compatible technologies, Wartsila focuses on the marine and energy markets with
products and solutions as well as services. Through innovative products and
services, Wartsila sets out to be the most valued business partner of all its
customers. This is achieved by the dedication of more than 12,000 professionals
manning 130 Wartsila offices in over 60 countries around the world.

http://www.wartsila.com

Link to pictures:
http://www.datahotelli.com/servlet/Piccolo/2006/2006_06_29.html

Link to the inauguration photos on our internet site:
http://www.wartsila.com/en,press,0,event,14045633932612836,0,,.htm

SOURCE: Wartsila Corporation

CONTACT: Marit Holmlund-Sund,
Public Relations Manager,
Wartsila Corporation,
Direct tel: +358-10-709-1439,
Direct fax: +358-10-709-1425,
marit.holmlund-sund@wartsila.com;

Vivian Huang,
Marketing Communications Manager,
Wartsila China Ltd.,
Direct tel: +86-21-5877-8800*122,
Direct fax: +86-21-5877-1609,
vivian.huang@wartsila.com;

Mr. Chen Yunhua,
Shanghai Marine Diesel,
Engine Research Institute,
Tel / Fax: +86-21-6313-3140,
chenyunhua@csic-711.com

Web site: http://www.wartsila.com
http://www.csic-711.com