WÃ¤rtsilÃ¤-Hyundai Engine Company inaugurated its new factory in Korea
WÃ¤rtsilÃ¤ Corporation, Press release,1 October 2008 at 9 am EET
WÃ¤rtsilÃ¤-Hyundai Engine Company, a joint venture between WÃ¤rtsilÃ¤ and
Hyundai Heavy Industries (HHI), today inaugurated its new factory in
Korea. The 50/50 joint venture company manufactures WÃ¤rtsilÃ¤ 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 WÃ¤rtsilÃ¤ 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 WÃ¤rtsilÃ¤-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
WÃ¤rtsilÃ¤ and Dr Keh-Sik Min, Vice Chairman and CEO of HHI.
WÃ¤rtsilÃ¤ 50DF pioneered an industry change
The WÃ¤rtsilÃ¤ 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 WÃ¤rtsilÃ¤ 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 WÃ¤rtsilÃ¤ and HHI, covering some 80 countries, to take
complete care of customers' ship machinery needs at every stage.
In January 2007 WÃ¤rtsilÃ¤ 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, WÃ¤rtsilÃ¤-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, WÃ¤rtsilÃ¤ Ship Power
Tel +358 10 7095626
Mr Atte PalomÃ¤ki
Group Vice President, Communications, WÃ¤rtsilÃ¤ Corporation
Tel +358 40 5476390
Mr Michael Lok
Director, Business Management, WÃ¤rtsilÃ¤-Hyundai Engine Company
Tel: +82 61 983 1160
Link to pictures
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.
About WÃ¤rtsilÃ¤ Corporation
WÃ¤rtsilÃ¤ enhances the business of its customers by providing them
with complete lifecycle power solutions. When creating better and
environmentally compatible technologies, WÃ¤rtsilÃ¤ focuses on the
marine and energy markets with products and solutions as well as
services. Through innovative products and services, WÃ¤rtsilÃ¤ 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 WÃ¤rtsilÃ¤ locations in close to 70 countries around the world. In
2007 WÃ¤rtsilÃ¤ generated net sales totalling EUR 3.8 billion. WÃ¤rtsilÃ¤
is listen on the Nordic Exchange in Helsinki, Finland