Slide 1: Investor group visit to CWEC, Shanghai, China
Investor group visit to CWEC, Shanghai, China 24 September, 2019 1 © CWEC 24.9.2019
Slide 2: CSSC Wärtsilä (Shanghai) Engine Co., Ltd.
CSSC WÄRTSILÄ (SHANGHAI) ENGINE CO., LTD. 2 © CWEC 24.9.2019
Slide 3: Safety Policy
SAFETY POLICY 3 © CWEC 24.9.2019
Slide 4: Suggested Agenda
SUGGESTED AGENDA • 13:00-14:45 Buss transport Hotel – CWEC • 14:45-15:30 Chinese marine market and CWEC • 15:30-16:00 Factory tour • 16:05-17:50 Buss transport CWEC – Hotel 4 © CWEC 24.9.2019
Slide 5: Shipbuilding in China
SHIPBUILDING IN CHINA 5 © CWEC 24.9.2019
Slide 6: An Overview of China Ship Building
AN OVERVIEW OF CHINA SHIP BUILDING Order book per yard country Chinese Market Share Orderbook per vessel type CGT CGT Other; 5% Offshore 58% Europe; 15% LPG Carrier 26% China P.R.; 37% LNG Carrier 10% Containership 42% Chemical Tanker 57% Japan; 17% Oil Tanker 29% Bulkcarrier 57% 0% 20% 40% 60% 80%
Slide 7: Chinese Shipyards
CHINESE SHIPYARDS Source: Clarkson Research, Per May-2019 7 © Wärtsilä 24.9.2019
Slide 8: China's Belt and Road Initiative Moving Forward
CHINA’S BELT AND ROAD INITIATIVE MOVING FORWARD Infrastructure Capacity Materials West Asia > 600 East Asia projects Oceania Latin America Central Asia East/Central Europe Middle East South Asia Africa Energy Transport Property Sout East Asia plants 0 50 100 150 200 Source: Clarkson, Lit search 8 ©
Slide 9: Historical Ordering in China
HISTORICAL ORDERING IN CHINA Global share of tonnage financed by Major Chinese Leasing Companies Chinese Leasing Companies Number of ships recorded CGT Other Chinese Domestic… Gas carriers % Global Fleet Other Chinese International % Global OB China Construction Bank Containerships China Ocean Shipp
Slide 10: Environment
ENVIRONMENT 10 © CWEC 24.9.2019
Slide 11: CWEC
CWEC 11 © CWEC 24.9.2019
Slide 12: Overview of CWEC
OVERVIEW OF CWEC Established by 2 major industry players • Product demand • Product • Local network • Global reach Investment 51% 49% CSSC Wärtsilä Engine (Shanghai) Co., Ltd (CWEC) 12 © CWEC 24.9.2019
Slide 13: CSSC is a leading shipbuilder in China and one of the leading in the world
CSSC IS A LEADING SHIPBUILDER IN CHINA AND ONE OF THE LEADING IN THE WORLD An overview of CSSC (China State Shipbuilding Corporation) • Established in 1999 CSSC Group • 70+ member units, 2 listed CSTC on Shanghai stock exchange Shipyards • 10 major shipyards Beijing Ship Repair Yards Design Institut
Slide 14: Wärtsilä Footprints in China
WÄRTSILÄ FOOTPRINTS IN CHINA WCN, Dalian Rep. Office Wärtsilä Ventures Joint Ventures WCN Shanhaiguan Shipyard Service Station WCN, Beijing Rep. Office • 1,300+ employees in Wärtsilä Qingdao Beihai Service Station Wärtsilä China Wärtsilä CME Zhenjiang Propeller Co Ltd FPPs, CPPs, shaft lines, blades
Slide 15: CWEC Key Milestones
CWEC KEY MILESTONES The joint venture started production in 2016 Total number of Joint venture Delivery of first Delivery of first engines as of today agreement W32 engine W34DF engine - Orders > 200 July 2014 December 2016 September 2018 - Delivered > 100 October 2015 January 2017 December 2018 Con
Slide 16: CWEC in a Nutshell
CWEC IN A NUTSHELL Focus on customer expectations Wärtsilä proven State of the art Skilled and Strong focus on products facility build to committed quality, health, purpose personnel and safety 16 © CWEC 24.9.2019
Slide 17: CWEC Product Scope
CWEC PRODUCT SCOPE Broad product portfolio, including leading Wärtsilä 34DF and 46DF Wärtsilä 26 V Wärtsilä 32 Wärtsilä 34 DF Wärtsilä 46F Wärtsilä 46DF Rated power kW 5000 10000 15000 20000 Year of start Wärtsilä diesel engines -- Wärtsilä 26 V Wärtsilä 32 2016/17 Wärtsilä 46 2019 Wärtsilä dual fue
Slide 18: Wärtsilä Engine Design
WARTSILA ENGINE DESIGN CWEC follow 100% Wärtsilä standard design, no modifications by CWEC CWEC not a licence maker but a Joint Venture • All bill of materials (BoM) and drawings are made, approved and managed by Wärtsilä • Non-standard request should be approved by Wärtsilä • Wärtsilä engineering s
Slide 19: CWEC Facility
CWEC FACILITY State of the art factory • Land plot: 80 000 m2 • Factory buildings: 21 000 m2 • Build to purpose A B 2 1 3 7 4 6 C B 5 A A Office Work flow 3 Pre assembly 6 Test cell x 3 B Fuel supply 1 Measuring room 4 Main assembly 7 Finishing C Technical building 2 Logistics 5 Painting 19 © CWEC 2
Slide 20: Contacts
CONTACTS CWEC location Visiting address No.383 Hongyin Road Ni Cheng Town Pudong Shanghai 201306 P.R. China Shanghai Telephone Shanghai +86 21 2093 6666 Fax +86 21 2093 6566 1000 Km CWEC 20 © CWEC 24.9.2019
Slide 21: CWEC Factory Tour Route
CWEC FACTORY TOUR ROUTE Starting Evacuation point assembly point 21 © CWEC 24.9.2019
Slide 22: © CWEC
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