Wartsila to gain larger foothold in rising market

Wartsila Corp, one of the world's largest ship power suppliers and manufacturers by revenue, is hoping to turn China into its biggest market by adding more manufacturing capacity in the country next year.

Eager to gain a larger foothold in the nation's lucrative shipbuilding market this year, the Finnish company will open a joint venture - Wartsila Yuchai Engine Co Ltd - in the middle of 2014, to manufacture medium-speed marine engines to serve the increasingly dominant Chinese shipbuilding industry in Zhuhai, in South China's Guangdong province.

Wartsila and Yuchai Marine Power Co Ltd, a subsidiary of Guangxi Yuchai Group, each owns half of the new company's shares. It will focus on manufacturing and testing a series of medium speed engines. The value of Wartsila's investment in this joint venture is 17 million euros ($23.5 million).