WELCOME TO WÄRTSILÄ CHINA

WELCOME TO WÄRTSILÄ CHINA
INVESTORS VISIT IN SHANGHAI (SEP. 23 2015)
James Han
President of Wärtsilä China
1
© Wärtsilä
Investors visit Sep. 23 2015
Wärtsilä China Today
• 20+ years history in China
• Well positioned for SP and
Service business
• One of Wartsila biggest market
with annual revenues of ~10% of
group sales
• Broad manufacturing footprint
through JVs and fully owned
companies.
• In the marine market, certain
leading Chinese ship owners
and shipyards are not only
Wärtsilä customers, but also JV
partners.
2
© Wärtsilä
Investors visit Sep. 23 2015
Major Milestone of Wärtsilä in China
1978
Signing of
licensee
agreement
between
Sulzer with
CSSC
2002
1986
1994
1998
Establishing
Wärtsilä Diesel
(China) Ltd.,
Hong Kong as
Joint Venture
with Kemklen
Hong Kong
Establishing
Shanghai
Representative
Office, Beijing
Representative
Office, Wärtsilä
Diesel Panyu
Service Station
(Joint Venture)
Establishing
Dalian
Representative
Office
1996
First Investment
in Taicang
Electric Power
Co., Ltd. (partial
ownership)
Integration of
John Crane-Lips
operation in
Shanghai
following global
acquisition in
April 2002
2004
1999
1991
1982
Developing
agent
relationship with
Kemklen
Industrial
Suppliers Ltd.,
Hong Kong
33
3 ©
© Wärtsilä
Wärtsilä
© Wärtsilä
Wärtsilä Diesel
(China) Ltd.,
Hong Kong
became a wholly
owned company
under Wärtsilä
Diesel Finland
Oy, Helsinki
Investors visit Sep. 23 2015
1995
Setting up Hong
Kong Service
Station
1997
Merging with
New Sulzer
Diesel Hong
Kong Ltd.
Upgrading Shanghai
Representative Office
to Wärtsilä NSD
Engine (Shanghai)
Ltd. with business
scope of trading and
servicing Setting up
Waigaoqiao
Workshop in
Shanghai
Wärtsilä-CME
Zhenjiang
Propeller Co. Ltd.
founded in June.
In the JV Wärtsilä
has 55% and CME
has 45%
ownership
Major Milestone of Wärtsilä in China
2012
Wärtsilä acquired the
Hamworthy plc group.
2005
Wärtsilä acquired Deutz
medium and high speed
engine marine service
business and started to
handle the business
from April.
Inauguration of Wärtsilä
Propulsion (Wuxi) Co.
Ltd. (wholly owned) in
June
JV Contract Signed to
establish Wärtsilä Yuchai
Engine Company Ltd.
2011
2007
Inauguration of
Tangzhen Service
Station in March
2010
Wärtsilä China
Engineering Center
was setup
Inauguration of CPP
production at Wärtsilä-CME
Zhenjiang Propeller Co.,
Ltd. In June
2009
2006
Inauguration of Wärtsilä
Qiyao Diesel Co., Ltd
(Shanghai)
(a 50/50 JV with CSIC
SMDERI to
manufacture marine
auxiliary engines) in
June 2006
2008
The top
management of
Wärtsilä Ship
Power moved to
China
Inauguration of Qingdao Qiyao
Wärtsilä MHI Linshan Marine
Diesel Co Ltd (QMD) in April.
(CSIC 50%, Wärtsilä 27% and
Mitsubishi 23%)
Inauguration of Wärtsilä Ship
Design (Shanghai) Co. in June
Zhoushan Services Station
was setup in Sept.
Signing of Strategic
Cooperation Framework
Agreement with CSSC in Nov
4 ©
44
Wärt
©©
Wärtsilä
Wärtsilä
Investors visit Sep. 23 2015
2014
Wärtsilä announced new joint venture
with CSSC for manufacturing medium
speed diesel engines in July
Wärtsilä and CSSC to join forces in 2stroke engine joint venture to take over
Wärtsilä's 2-stroke engine business
Wärtsilä divested its shares in QMD 2stroke joint venture in July
Inauguration of Wärtsilä Yuchai Engine
Company Ltd. In September
Wärtsilä Footprints in China
WCN, Dalian Rep. Office
WCN Shanhaiguan Shipyard Service Station
WCN, Beijing Rep. Office
Wärtsilä Services (Shanghai) Co Ltd
Tianjin Representative Office
Wärtsilä CME Zhenjiang Propeller Co Ltd
FPPs, CPPs, shaft lines, blades and hubs
Cosco-Shipyard Total Automation Co Ltd
Wärtsilä Services (Shanghai) Co Ltd
Wärtsilä Ship Design (Shanghai) Co Ltd
Wärtsilä HRDD Services Station
Wärtsilä Ventures
Joint Ventures
Wärtsilä Zhoushan IMC-YY Services Station
Wärtsilä (Suzhou) Ltd.
Formal name is Hamworthy (Suzhou) Ltd.
Sewage Water Treatment Plant, Inert Gas
System, Control Panel
CSSC Wärtsilä Engine (Shanghai) Co. Ltd
Wärtsilä Qiyao Diesel Shanghai Co Ltd
Wärtsilä Auxpac 20 and 26 gensets
Wärtsilä Propulsion (Wuxi) Co Ltd
TTs, LCTs, seals & bearings and components
Wärtsilä Services (Shanghai) Co Ltd, Nansha Office
WCN ChengXi Guangzhou Service Station
WCN Yiulian (Shekou) Dockyards Service Station
• 5 JVs, 2 fully-owned factories
• 9 service centers
• 1500+ employees
5
© Wärtsilä
Investors visit Sep. 23 2015
Wärtsilä China Ltd. (H.K)
Wärtsilä Yuchai Engine Co., Ltd
Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 series of medium speed engines
Chinese Economy and Market Update
6
•
China economy further slowed down with headwinds both externally and internally, despite
7% GDP expansion in H1.
•
Export fell by 6.1% yoy in Aug and imports shrank by 13.6%. However exports to US and
ASEAN increased by 6.1% and 5.6% respectively.
•
PMI slipped to 49.7 in Aug from 50 for July, the lowest in 36 months since 8/2012.
However, sub PMI for high tech manufacturing (52.2) and consumption sector (54.6) remain in
expansion
•
Medium and long term still look positive, as service sector now accounts for 50% of GDP
and private consumption contributes more than 60% of GDP growth. Slowdown is necessary
to make structural transition from export/investment to more sustainable consumption/service
mode. Government has sufficient tools to stimulate economy to avoid hard landing.
•
China shipbuilding industry facing huge challenges. First 8 months in 2015, new contract
order dropped 68.3% yoy to 15 million DWT and order book decreased 12.1% to 135 million
DWT. However total completion increased by 14.6% to 25.31 million DWT. In terms of order
book, China still holds the largest market share (39.7 million CGT), followed by Korea (31.8
million CGT) and Japan (19.77 million CGT). Main challenges from weak demand,
overcapacity, difficult for private yards to get financing, low oil price, etc.
•
Power Market has great potential for gas and renewable energy. China’s installed gasfired power capacity reached 55.67 GW in 2014, accounting for 4.1% of total power mix,
increased from 3.4% in 2013. Gas consumption in H1 increased bit slow by 3.3%, but the
continued decline of imported gas price could boost consumption. 13th five year plan will focus
on further expansion of renewable energy. By 2020, wind power would be tripled from current
75 GW to 200 GW and solar would jump from 15 to 100 GW.
© Wärtsilä
Investors visit Sep. 23 2015
Growth opportunities in China
MOVE TO A
SUSTAINABLE
ECONOMIC GROWTH
PATTERN
• Transform from
Invest/export focused
to domestic
consumption
• Shift to a
sustainable, quality &
efficient growth (6-7
% GDP growth)
URBANIZATION &
SURGING OF MIDDLE
CLASS
FOCUS ON GREEN
ECONOMY
DRIVE FOR
INNOVATION & HIGH
END MANUFACTURING
• ~ 70% of population
will live in the cities
by 2035
• Shift to renewable
and clean energy
• Move up the labor
value chain
• ~ 200 cities > 1
million habitants
• Increase energy
efficiency and reduce
pollution
• Heavy investment in
R&D and focus on
domestic brand
creation
• 700 m middle class
by 2020 and 1.4 b by
2030
• Deepen economic
and political reforms
7
© Wärtsilä
Investors visit Sep. 23 2015
• Invest > 8 trillion RMB
(1.28 trillion USD) in
green economy over
the 12th Five-Year
Plan Period (201115).
• From “made in
China” to “innovated
in China”
The most important market for Marine Solutions
WORLD LEADING
POSITION
• No.1 trading nation
with biggest
shipping fleets
• Largest
shipbuilding country
(37% of world order
book by Jan-Aug
2015)
8
© Wärtsilä
Investors visit Sep. 23 2015
POSITIVE
DEVELOPMENTS TO
MEET CHALLENGES
• Shift from Merchant to
offshore and special,
from standard low value
to complex high value
• Increasing focus on fuel
efficiency and
environmental
performance
• Strong demand from
domestic ship-owners
from offshore, special,
and LNG
GOVERNMENT
POLICY
SUPPORTING
MARINE INDUSTRY
• Drive technology
innovation
• Accelerate industry
restructure to reduce the
overcapacity
• Develop “Green Ships”
(high efficiency with low
emission and fuel
consumption.
• Push for 80% local content
for marine equipment by
2015
Power market opportunities for Energy Solutions
9
WORLD LEADING
POSITION
• Largest power production &
consumption country
• Overtook US in 2009 as the
largest investor in clean tech
industries
• Leading position in renewable
energy (wind and solar)
creates potential for smart
power generation
9
© Wärtsilä
© Wärtsilä
Investors visit Sep. 23 2015
NATIONAL POLICY
PUSH FOR CLEAN
ENERGY
STRONG GROWTH
FROM GAS-FIRED
POWER PLANT
• Develop >1,000 NGDE projects • Current installed gas ~36 GW, will
with 50 GW new capacity by
2020
• Increase Gas-fired from 3.9% to
8.3%
• Construct a strong and smart
national grid
reach ~150 GW by 2020
• Gas projects are also driven by
provincial, local level and big
SOEs
• 1/3 of power in Beijing (38%)
coming from gas-fired (3.5GW)
• Jiangsu Province installed 5.3
GW with 8 gas-fired GT and 10
CHP co-gen plants
Wärtsilä Services in China
We provide total and 24/7
Shanhaiguan
services
Engine Services
Propulsion System
Dalian
Automation
Boiler
HRDD
In-situ Machining
Shanghai
Training
Reconditioning
Zhoushan
Guangzhou
Taipei
Longxue
Kaohsiung
Yiulian
Hong Kong
50 largest Repair Yards in China that dock foreign ships
Wärtsilä presence
10
10
©©
Wärtsilä
Wärtsilä
Investors visit Sep. 23 2015
Major Wärtsilä Services workshops in China
Shanghai
11
Guangzhou
Hong Kong
• Established: 1999
• Established : 1994
• Established: 1991
• Location: Tangzhen Shanghai
• Location: Nansha, Guangzhou
• Main
–
–
–
–
–
• Located in Hong Kong
United Dockyards (HUD)
• Field service covering
southern China
© Wärtsilä
activities:
Reconditioning
External Field Services
In-situ and Afloat repair
Automation
Commissioning and
Start-ups
Investors visit Sep. 23 2015
• Specialized in servicing
Woodward governors and
ABB/Napier Turbo Chargers
• Workshop reconditioning of
entire gensets
• Supporting visiting vessels,
Hong Kong ship owners and
ship management
companies
Service cooperation with Chinese shipyards
Shanhaiguan
2008
Guangzhou
2010
Shanghai
2010
Zhoushan
2011
Shenzhen
2011
In order to serve customers better, Wärtsilä China entered a
cooperation with major shipyards in China.
A team of Wärtsilä experts is permanently stationed there
and jointly provide a full range of field services.
12
© Wärtsilä
Investors visit Sep. 23 2015
Wärtsilä China manufacturing facilities
We provide market leading products
13
© Wärtsilä
Investors visit Sep. 23 2015
Delivery Centre – Thrusters, Seals, Bearings / Wuxi
Wärtsilä Propulsion (Wuxi) Co., Ltd
Inauguration phase 2 November 2007
Employees: 161 (April 2013)
14
14
©
14 © Wärtsilä
© Wärtsilä
Wärtsilä
Investors visit Sep. 23 2015
Delivery Centre – CPP & FPP / Zhenjiang
Wärtsilä CME Zhenjiang Propeller Co., Ltd
Founded in 2004 and new CPP factory inauguration in June 2011
Employees: 407 (April 2013)
Joint Venture (Wärtsilä 55%, CSSC1 45%)
Note: CSSC1 = China State Shipbuilding Corporation
1515
Wärtsilä
©©
Wärtsilä
Investors visit Sep. 23 2015
Delivery Centre - Auxpac 20 & 26 / Shanghai
Wärtsilä Qiyao Diesel Company Ltd. (Shanghai)
Inaugurated in 2006
Employees: 141 (April 2013)
Joint Venture (Wärtsilä 50%, CSIC1 50%)
Note: CSIC1 = China Shipbuilding Industry Corporation
1 CSIC =
Note:
China
16
©
Wärtsilä
16
©
Wärtsilä
©©
Wärtsilä
1616
Wärtsilä
China
Shipbuilding Industry
Corporation
28 September 2015
Corporate Presentation
Investors visit Sep. 23 2015
Delivery Centre- Environment & Safety Product / Suzhou
• Inauguration in 1998 (former Hamworthy Suzhou)
• Employee: 103 (April 2013)
• Products: sewage water treatment plants, inert gas systems,
control panels
17
© Wärtsilä
Investors visit Sep. 23 2015
Wärtsilä Yuchai Engine Co., Ltd / Zhuhai
18
•
50/50 Joint venture owned by Wärtsilä and
Yuchai Marine Power Co., Ltd (YCMP), a
subsidiary of Guangxi Yuchai Group.
•
Location: Zhuhai, Guangdong Province, China
•
Products: Wärtsilä 20, Wärtsilä 26, Wärtsilä 32
series of engines and generating sets.
•
Total annual capacity(engine): 400
•
Total annual capacity(MW): 1,000
•
Production area (square meters): 22,616
© Wärtsilä
Investors visit Sep. 23 2015
Wärtsilä China Growth Strategy
Launch key initiatives to support long term growth
Strengthen high level customer contacts and external
relationships (government, JV partners, etc) to ensure business
success.
Simplify operating model with entrepreneurial driven
organization to be more agile and react faster
Create a strong China organization by introducing best
practices, professionalism and high performance culture
Attract develop and retain the best talents to create highly
motivated workforce
19
© Wärtsilä
Investors visit Sep. 23 2015
Development of partnership in China continues:
CWEC, a new 4-stroke engine Joint Venture between CSSC and Wärtsilä
Joining the forces of two major players in marine business sector
Largest shipbuilding group in China
and in the world
10 shipyards covering over 25% of China
shipbuilding order book
20
© Wärtsilä
Investors visit Sep. 23 2015
Global leader in complete lifecycle
power solutions for marine industry
Market leader in 4s marine engines and
gas, DF technologies and solutions,
optimized for offshore, LNGC, C&F
W26
W32
W34DF
W46F, W46DF
CWEC Video
Play Video
21
© Wärtsilä
Investors visit Sep. 23 2015
WÄRTSILÄ
MARINE SOLUTIONS
Hans Laheij, Area Sales Director,
Marine Solution Sales, Middle East and Asia
22 / 36
© Wärtsilä
© Wärtsilä
Doc.ID:
Revision:
Status:
Market environment
23
China, South Korea and Japan dominate in the shipbuilding market
Builder Country shares ( CGT)
Others
Europe
U.S.A
United Kingdom
South Korea
Japan
China P.R
Other Asia
100%
Other Asia
90%
Uni ted Kingdom
80%
China P.R
CGT
37.4%
GT
40%
70%
U.S.A
60%
Ja pa n
CGT
21.1%
GT
22.2%
50%
40%
30%
Europe
CGT
27.9%
GT
29.4%
South Korea
20%
10%
Others
Source: Clarksons
24
2014
2012
2010
2008
2006
2004
2002
2000
1998
1996
1994
1992
1990
1988
1986
1984
1982
1980
1978
1976
1974
1972
1970
1968
1966
1964
1962
1960
1958
1956
1954
1952
1950
0%
Contracting Activity Development – All vessels
Merchant
Offshore
Cruise and Ferry
Special vessels
3 months moving average in CGT
250
5,0
227
4,5
210
200
4,0
187
3,5
150
3,0
134
129128
118
113
113
102
101
95
100
102
94
93
92
53
50
107
2,0
76
64
63
59
52
76
50
75
71
71
70
47
45 46
106107
102
88 88
77
75
70
64
47
2,5
114
82
71
69
126
94
94
88
78
76
122 123
123
122
117
61
60
57
46
71
68
56
54 55
46
38
31
23
25
23
10
1,5
51
1,0
32
27
0,5
13
0
0
0,0
August 2015 contracts: 51 vessels and 1,4 million CGT
Source: Clarksons
25
© Wärtsilä
Million CGT
Number of vessels
167
162
Contracting Activity - Builders
2015 total contracting activity = 692 vessels and 19,0 Million CGT
Builders 2015 YTD, Number of vessels
YTD Builders, No of vessels
Vietnam
2%
Philippines
2%
Spain
3%
Netherlands
3%
Builders 2015 YTD, CGT
Germany
3%
Spain
1%
Finland
3%
RoW
12%
Philippines
3%
YTD Builders, CGT
RoW
5%
China P.R.
32%
South Korea
39%
Japan
22%
Japan
21%
South Korea
25%
China P.R.
24%
Intensifying competition in China
It is becoming increasingly difficult to operate as a private-owned shipyard in China in recent years due to growing competition
especially from China's state-owned shipyards, in addition to Japan and South Korea.
Source: Clarksons
26
© Wärtsilä
Contracting Activity - Owners
2015 total contracting activity = 692 vessels and 19,0 Million CGT
YTD Owners, No of vessels
Owners 2015 YTD, Number of vessels
Owners,
CGTCGT
OwnersYTD
2015
YTD,
Japan
13%
Row
49%
Japan
17%
China P.R.
11%
RoW
39%
China P.R.
10%
Greece
9%
Greece
9%
Singapore
5%
Norway
5%
Denmark Germany
4%
4%
Source: Clarksons
27
© Wärtsilä
Denmark
9%
South Korea
5%
Germany Hong Kong
5%
6%
$44.68
Source:
Bloomberg business
28
© Wärtsilä
Oil Price Development
46.81
Source: Bloomberg business
29
© Wärtsilä
Offshore is Highly Sensitive to Oil Price Development
Break-even oil price for offshore projects (fields not yet in production, Q1 2015)
33%-73 % of offshore projects
feasible between 60 and 80
USD/bbl
30%
25%
0%-33% of offshore projects
feasible with the price below
60 USD/bbl
20%
More than 73% of offshore
projects feasible when the price
climbs above 80 USD/bbl
15%
27,0%
25,4%
10%
17,5%
12,7%
5%
3,2%
4,8%
<40 USD
USD 40-50
0%
USD 50-60
USD 60-70
USD 70-80
USD 80-90
4,9%
4,6%
USD 90-100
USD 100+
EIA oil price forecast (North Sea Brent crude, USD/bbl)
160
140
120
100
80
60
40
20
0
Source: Clarksons, EIA (oil price development in constant USD values)
30
© Wärtsilä
2040
2039
2038
2037
2036
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
2015
2014
EIA predicts the price of Brent
crude to stay below 80 USD/bbl
until 2021
Examples of significant projects in China
GOTLAND ROPAX Ferry
Full scope on main equipment
Length 200m
LNG powered
speed 28.5 knots
1650 PAX
1750 Lane m.
Evergas 27’500cbm LEG
Carrier
Full SCOPE on main equipment
31
© Wärtsilä
Wärtsilä Marine Solutions
32
WÄRTSILÄ Marine Solution / Hans Laheij
Wärtsilä Marine Solution’s Strategic Goal
Marine Solution’s strategic goal
To be recognized as the leading provider of innovative products and integrated
solutions in the marine and offshore oil & gas industry.
Gas and dual-fuel
solutions
Environmental
solutions
THROUGH
OFFERING
LEADER IN
Efficiency
33
• Lifecycle solutions for ship owners and operators
• Integrated solutions for the shipbuilding industry, owners and operators
• The most competitive products and delivery process for the marine industry
The most complete marine offering on earth
34
A Comprehensive Product Portfolio
35
Automation
Ballast water
management
Compressors
Engines &
generating sets
Exhaust gas cleaning
Gas systems
Gears
Inert gas
Oil separation
Power electric
systems
Propulsors
Pumps & valves
Seals, bearings &
stern tubes
Waste & fresh water
management
Ship design services
Wärtsilä Marine Solutions in China
Wärtsilä Marine Solutions has been growing fast in China. In order to further grow it is important to
focus on key differentiators that will ensure Marine Solutions continued success in China.
Tazama Pipelines Limited
Management
Tanzania Zambia
Our Offering
People
Customer communication
• Optimized solutions with local capabilities in
project engineering and project management
• Entrepreneurial mindset. Make things
happen.
• Fast response during delivery
process
• Standardized products for larger volume
markets with lean delivery process through
local factories
• Empower a qualified local organization in
order to capture and deliver customer
satisfaction towards (Chinese) customers.
• Fast engineering documentation
• Local commissioning support and
local site supervision
• Easy to deal with
INTERNAL USE ONLY
WÄRTSILÄ Marine Solution / Hans Laheij
Wärtsilä Qiyao Diesel Company Ltd. (Shanghai)
37
Shareholder Information – Wärtsilä & SMDERI / CSIC
CSIC (China Shipbuilding Industry
Corporation): a state owned enterprise
group and one of China’s largest
shipbuilding and ship repairing groups
in China.
CSIC has 3 listed companies, 28 nonlisted companies and 28 R&D
institutes in China, with in total
personnel of 150,000.
2014 CSIC sales revenue over USD. 32
billion (USD30 billion in 2013) .
SMDERI (Shanghai Marine Diesel Engine
Research Institute): a subsidiary of CSIC
with roughly 2000 employees, and is
the only research institute on marine
diesel engine in China.
SMDERI is specialized in marine diesel
engine, power plant, etc. and engaged
in R&D, manufacturing, technical
service, turnkey project.
SMDERI’s main business activities
include diesel engine, special engine,
power system solutions, engine-room
automation system, thermal
engineering and energy service
38
WQDC Milestones 2005-2015
Letter of Intent
3.2.2005
Introduction of
Wartsila20 Genset
15.1.2010
Ground
breaking
23.9.2005
Auxpac 16
launch event
2.12.2013
100th
Auxpac20
4.12.2007
1000th genset
delivery
28.6.2012
Inauguration
29.06.2006
500th genset
delivery
21.12.2009
JV Contract
21.4.2005
39
30.3.2015
Delivery 1st
Auxpac 16
Business Scope
The scope of business is to produce, assemble and finish the AUXPAC
generating sets and relevant parts and assemblies designed by Wärtsilä,
and to sell & commission its own products in China.
Portfolio products:
Wärtsilä Auxpac 20
Wärtsilä Auxpac 26
Wärtsilä 20 genset
Wärtsilä Auxpac 16
Wärtsilä 20 main engine
40
Business Scope
The Wärtsilä auxpac range is a pre-engineered generating set
WQDC manufactures A16, A20 and A26
The Wärtsilä 20 “classic” genset is a custom designed generating set often
used for special vessels and offshore
Wärtsilä 20 Main Engine application for customers located in China
41
WQDC - State of the art factory
Our WQDC assembly & testing factory designed and build according to Wärtsilä
best practices
Engine assembly takes place by means of “Lean” production lines
WQDC has a high level of focus on EHS in all aspects of the factory design and
operations
Transport of engines in the factory takes place with “air cushions” to minimize
lifting for the engines
42
WQDC Factory layout
Step 0
Step 1
Step 2
Quality
Insp.
Goods
Reception
Total construction
area: ~9800 m²
Workshop: ~8000 m²
Office: ~1800 m²
Total site area:
~31000 m²
Step 0
Step 1
Step 2
Step 3
Finishing
Step 4
Assembly area
Office building.
Sanitary facilities.
43
Step 3
Step 4
Elec.
Ass.
Step 5
Test run
Storage
Painting
room
Step 5
Dispatching
Technical area
Small
Washing
Auxpac 20 & Wartsila 20 Assembly Line
Wartsila 16/20/26 Assembly Line
Big
Washing
Machine
WQDC genset applications
44
© Wärtsilä
Wärtsilä’s support throughout WQDC operations
Network
Companies
WQDC
Vital
Functions
Production
Finance
Human
Resource
Wärtsilä Supply Management
Quality
MS 4 stroke JV Engineering Centre China
Marine Solutions Sales
Services
Human Resources
45
Project &
Contract
Management
Sales &
Marketing
Customers
Material
Supply
Wärtsilä’s support throughout WQDC operations
Wärtsilä Supply Management
Our entire supply base is managed by
Wärtsilä. From supplier selection, making
frame contracts, supplier quality, supplier
development and sourcing of new suppliers
Wärtsilä Quality & EHS
Management
Wärtsilä work processes and way of working
are fully implemented in WQDC. WQDC uses
the QDMS system and participates in Wärtsilä
programs such as LEAN, ZIP, safety reviews
and other continuous improvement programs
WÄRTSILÄ DESIGN, BRAND & QUALITY
Manufactured by WQDC
46
Wärtsilä Engineering
Wärtsilä Service
Engineering information for each order will be
received from Wärtsilä engineering
department. WQDC has on site Wärtsilä
engineering support to facilitate trouble
shooting and quick assistance
Full support for the lifecycle and operation of
the vessel including the warranty obligations
will be taken care of by Wärtsilä’s global
service network. Where ever, when ever!
Quality of the Components in our
engines
The engine quality is largely defined by the quality of the components that are
assembled together.
The selection of the supplier is done by Wartsila global sourcing as well as the
continuous development of these suppliers
In WQDC our engines include approx 65% western brand parts
•Imported from Europe
•Western brands that have a factory in China
47
Sales channels
WQDC delivers engines worldwide depending upon customer needs
The majority of our products are delivered in China since most Merchant ships are
manufactured in China
WQDC has 2 sales channels: our own WQDC Sales Team and Wärtsilä Marine Solutions
Sales Team
48
Customers inside China
for only WQDC scope of
supply
WQDC Sales Organization
Customers outside China
or customers inside China
with package sales
Wärtsilä Marine Solutions
Organization
WQDC organisation set-up
Managing Director
Assigned by Wärtsilä
Sales Department
Market development
Customer relationship
Commercial negotiations
Project management Department
TS & quotation management
Project management
Auxpac 16 product ownership
Material Supply Department
Operative Purchasing
Goods reception & warehousing
Logistics
Auxpac 16 sourcing
Production Department
Assembly
Testing
Commissioning
49
Financial Controller
Assigned by SMDERI
Finance Department
Business Control & reporting
Financial planning
Accounting & bookkeeping
Taxation
Quality & EHS Department
Quality Control & Assurance
Management systems
Classification
EHS
HR & Admin Department
HR
Admin
IM-IT
Management Systems
50
QUALITY, DELIVERY & COST – IN THAT ORDER!
51
Thank you for your attention!
Any questions or comments?
52
Factory tour
Rules for today’s factory tour
* No PPE’s are needed since factory activities are
temporarily stopped
* Please walk through the middle of the factory
* We will first walk to the goods reception area
so that can start our tour by follow the production process
53