MAY 28, 2013 — Wärtsilä Yuchai Engine Co., Ltd, a joint venture owned 50/50 by Wärtsilä and Yuchai Marine Power Co. Ltd., today began construction of its new production facilities with a groundbreaking ceremony in Zhuhai City, Guangdong Province of China.

The agreement to establish the joint venture was signed in December 2012. The company will manufacture medium-speed marine engines for the Chinese shipbuilding industry. The products to be manufactured by the joint venture company will include the Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 series of medium speed engines. Production is planned to start in 2014.

"Today marks an important step towards our goal to serve our customers in the Chinese shipbuilding market in the best possible way," said Björn Rosengren, President & CEO of Wärtsilä Corporation, attending the ceremony in Zhuhai. "The combination of Wärtsilä's industry leading technology and Yuchai's position as the leading high speed engine manufacturer in China, will provide strong competence in manufacturing, sourcing and market access,"

Yan Ping, Chairman of the Board of Directors, Yuchai Group, added: "Both the Yuchai Group and Wärtsilä are committed to building up the most efficient high-end medium speed engine production base in China by combining the strengths of both parties. The project is envisioned to be a role model for cooperation between China and a leading international partner in the field of advanced diesel engines."

The Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 engines are all well established on the market, and are known for their reliability, fuel efficiency and low levels of exhaust emissions. They are also fully optimized for today's flexible manufacturing methods. All three are fully compliant with the IMO Tier II exhaust emission regulations as set out in Annex VI of the MARPOL 73/78 convention.