Wartsila Building Bearing Plant in China

Wartsila Building Bearing Plant in China Wartsila Oy (Finland) will build yet another new plant in China, its 12th manufacturing facility in the country. This newest factory is being built to meet increased demand for marine-application seals and bearings. Located in Wuxi, it will be Wartsila's second there, alongside Wartsila Propulsion Wuxi Ltd. This newest new Wuxi factory will produce seals, line shaft bearings and sterntubes. Wartsila said its intent is to not only meet fast-growing local demand but also to further strengthen Asian market penetration for seals and bearing products. It is scheduled to come online in mid-2007. China's shipbuilders currently produce 34%, more than one of every three ships, built in the world today; the nearest competitor is Korea, at less than 24%. China's shipyards have become key customers for specialty propulsion systems. For example, at a cost of more than $12 million, Wartsila is shifting production of its smaller compact steerable from the Netherlands to its existing Wuxi plant. The Netherlands facility will concentrate on higher-value large thrusters. Wartsila also owns Japan Marine Technologies Ltd. (Japan) which recently inked an agreement to supply China's SWS Shipyard with 90% of its sterntube seals and bearings. The contract also covers 32 bulk carriers and 16 crude oil tankers being built by SWS for Ocean Tankers Ltd. The Airguard sterntube seal system is an anti-pollution lip seal that uses compressed air to prevent seawater from seeping in and oil from seeping out. The aft sterntube seal is a muti-barrier lip-type seal with three seal rings: two rings face the sterntube oil side as double security against oil spill, while the third faces and seals off the water side. All of the seal rings run in a shaft liner, which helps prevent the lips from eventually grooving the shaft and seeping at the groove.