Engine manufacturer Wartsila and China State Shipbuilding Corporation (CSSC) have signed a letter of intent to establish a new joint venture company to focus on China's growing market for electrical & automation (E&A) solutions for marine applications.

The planned activities of the joint venture will include sales, marketing, engineering and project management for the E&A market. The new entity is expected to be operational at the beginning of 2017.

“Wartsila has a leading position in supplying E&A systems for high-end and offshore vessel applications. By combining our strengths in this field with the strong market position of CSSC, we can provide Asian owners and yards with the best possible solutions supported by local presence and capabilities,” said Jaakko Eskola, ceo of Wartsila.

Wartsila and CSSC are already partners in three joint venture companies. In 2004 they jointly formed Wartsila CME Zhenjiang Propeller Co Ltd (WCME), a company producing fixed and controllable pitch ship propellers.

In 2014, CSSC Wartsila Engine (Shanghai) Co Ltd (CWEC) was established for the local production of medium and large bore, medium speed, diesel and dual-fuel Wartsila engines.

In 2015 the two companies formed Winterthur Gas & Diesel (WinGD). WinGD has taken over the technical development and sales of Wartsila’s range of two-stroke, low speed marine engines.