Business is running as it should, says MAN Diesel & Turbo, stating that the company is not worried about the joint venture between competitor Wärtsilä and Chinese shipbuilding giant CSSC (China State Shipbuilding Corporation) that focuses on the Finnish engine supplier's two-stroke engine business, a spokesman from MAN Diesel & Turbo tells ShippingWatch.
The statement comes as a reaction to an analysis from Alphaliner in which the analyst agency describes the joint venture, formed this summer and which has now received final approval, as a severe blow to MAN Diesel & Turbo, predicting that the new collaboration will likely prod customers to choose Wärtsilä/CSSC.
But MAN Diesel & Turbo's business in China is running as it should, says the company. And today, Wednesday, the company has renewed licensing agreements with Chinese shipbuilders in North and South China for the next yen years.
"The Chinese will be able to offer all products. We're noting an increasing interest in our products globally and we expect to maintain our position in China. There's always solid competition and it all comes down to the shipowner's final decision," a spokesman tells ShippingWatch.
The joint venture between Wärtsilä and CSSC, which has now received final approval from the Chinese authorities, means that 70 percent of the engine manufacturer's two-stroke engine business in China is now owned by CSSC, while Wärtsilä keeps 30 percent. The collaboration goes by the name Winterthur Gas & Diesel (WinGD) and will focus on developing and marketing the two-stroke engine. Engine servicing will continue as part of Wärtsilä's global business, and the supplier plans to focus on two-stroke engine servicing going forward. Alphaliner had the following comment on the collaboration in a new analysis:
"The Wärtsilä-CSSC deal is a blow to MAN-B&W, the other heavy weight in the low speed engine business, as CSSC will likely prod its customers into opting for Wärtsilä-CSSC rather than the engines of the German-Danish concern, although the clients of the shipyards have the final say in terms of engine choices."