Vinashin signs agreement to build Wartsila engines
Vietnam now joins Wartsila's 'family of licensees'


At a ceremony today in Hanoi, Vietnam, Wärtsilä and Vietnam Shipbuilding Industry Corporation (Vinashin) signed a licence agreement for the manufacture and sale of Wärtsilä low-speed marine engines in Vietnam.

The agreement was signed by Mr Pham Thanh Binh, Chairman & CEO of Vinashin and Mr Martin Wernli, President of Wärtsilä Switzerland Ltd.

"Through signing this agreement, Vinashin looks forward to a long-term partnership with Wärtsilä and thus together deliver to shipowners modern vessels with high quality and the best engine technologies from Wärtsilä" said Mr Pham Thanh Binh of Vinashin.

"With this agreement, Vinashin is welcomed into the Wärtsilä family of licensees building Wärtsilä low-speed engines. We look forward to many years of fruitful co-operation", emphasized Mr Martin Wernli, Wärtsilä Switzerland Ltd.

The agreement grants Vinashin the right to manufacture certain types of Wärtsilä modern low-speed engine types between 48 and 82 cm bore size at their works in Vietnam. The first delivery of a Wärtsilä engine is scheduled for the beginning of 2010, with production building up to a targeted annual output of 30 to 40 engines.

At the same time Wärtsilä Corporation announced it is expanding its representation in Vietnam by opening a branch office today in Hanoi. Vietnam is a rapidly-growing market for Wärtsilä’s products and services to the shipping, shipbuilding and power industries.

“With more than 3000 km of coastline and abundant offshore oil and natural gas resources, Vietnam is a natural participant in the global power and marine industry and Wärtsilä will support and be part of its development,” said Clas-Eirik Strand, Chairman of the board of Wärtsilä in Vietnam.

Wärtsilä has had a permanent presence in Vietnam since 1994 when it set up a representative office in Ho Chi Minh City. In 1998 Wärtsilä obtained a business licence to operate as a 100% foreign-owned service company and founded Wärtsilä Vietnam Co Ltd.

The company in Vietnam is actively involved in the promotion of Wärtsilä marine power and propulsion systems and land based power plants. Full after-sales support is provided for the complete range of products.

The recent growth in world shipbuilding demand has led to the rise of Vietnam as a major shipbuilding country and thus as a market for Wärtsilä products and services. Wärtsilä is already supplying engines and propulsion systems from its wide range of products for newbuildings at shipyards in Vietnam. In parallel Wärtsilä is providing full after-sales support for the existing fleet and engineers are being trained as the engine population increases.

Vietnam Shipbuilding Industry Corporation (Vinashin) is a key customer and within recent months, Wärtsilä received several orders from Vinashin for propulsion systems and low-speed main engines to be installed in newbuildings contracted at its shipyards.

Wärtsilä, through its presence in Vietnam, will be able to strengthen its deliveries of required propulsion and power equipment and local technical expertise that will enable Vietnamese shipyards to compete for newbuilding contracts locally and internationally. Wärtsilä will thus contribute to the development of the Vietnamese shipbuilding industry for ocean-going and offshore vessels.