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 2002 Integration of John Crane-Lips operation in Shanghai 1986 1998 following global 1994 acquisition in Establishing Establishing Establishing April 2002 1978 Wärtsilä Diesel Shanghai Dalian Signing of (China) Ltd., Representative 1996 Representative Hong Kong as Office, Beijing Office licensee First Investment Joint Venture Representative agreement in Taicang with Kemklen Office, Wärtsilä between Electric Power Hong Kong Diesel Panyu Sulzer with Co., Ltd. (partial 2004 Service Station CSSC ownership) Wärtsilä-CME (Joint Venture) Zhenjiang Propeller Co. Ltd. 1999 founded in June. 1991 Upgrading Shanghai In the JV Wärtsilä Wärtsilä Diesel Representative Office has 55% and CME (China) Ltd., 1995 1997 to Wärtsilä NSD has 45% 1982 Engine (Shanghai) Hong Kong Setting up Hong Merging with ownership Developing Ltd. with business became a wholly Kong Service New Sulzer agent scope of trading and owned company Station Diesel Hong relationship with under Wärtsilä Kong Ltd. servicing Setting up Kemklen Diesel Finland Waigaoqiao Industrial Oy, Helsinki Workshop in Suppliers Ltd., Shanghai Hong Kong
3 © Wärtsilä 3 3 © ©Wärtsilä Wärtsilä Investors visit Sep. 23 2015 Major Milestone of Wärtsilä in China 2012 2005 Wärtsilä acquired the Hamworthy plc group. Wärtsilä acquired Deutz medium and high speed JV Contract Signed to engine marine service establish Wärtsilä Yuchai business and started to Engine Company Ltd. handle the business 2011 from April. 2007 Inauguration of CPP Inauguration of production at Wärtsilä-CME Inauguration of Wärtsilä Tangzhen Service Zhenjiang Propeller Co., Propulsion (Wuxi) Co. Station in March 2010 Ltd. (wholly owned) in Wärtsilä China Ltd. In June June Engineering Center was setup 2014 Wärtsilä announced new joint venture with CSSC for manufacturing medium speed diesel engines in July 2006 2009 Inauguration of Qingdao Qiyao Inauguration of Wärtsilä Wärtsilä MHI Linshan Marine Wärtsilä and CSSC to join forces in 2- Qiyao Diesel Co., Ltd 2008 Diesel Co Ltd (QMD) in April. stroke engine joint venture to take over (Shanghai) The top Wärtsilä's 2-stroke engine business (a 50/50 JV with CSIC management of (CSIC 50%, Wärtsilä 27% and SMDERI to Wärtsilä Ship Mitsubishi 23%) Wärtsilä divested its shares in QMD 2- manufacture marine Power moved to Inauguration of Wärtsilä Ship stroke joint venture in July auxiliary engines) in China Design (Shanghai) Co. in June June 2006 Zhoushan Services Station Inauguration of Wärtsilä Yuchai Engine was setup in Sept. Company Ltd. In September
Signing of Strategic Cooperation Framework Agreement with CSSC in Nov 4 © Wärt44 © ©Wärtsilä Wärtsilä Investors visit Sep. 23 2015 silä 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 Ventures Wärtsilä Ship Design (Shanghai) Co Ltd Wärtsilä HRDD Services Station Joint Ventures Wärtsilä Zhoushan IMC-YY Services Station
Wärtsilä (Suzhou) Ltd. CSSC Wärtsilä Engine (Shanghai) Co. Ltd Formal name is Hamworthy (Suzhou) Ltd.
Sewage Water Treatment Plant, Inert Gas Wärtsilä Qiyao Diesel Shanghai Co Ltd System, Control Panel 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 Wärtsilä China Ltd. (H.K) • 5 JVs, 2 fully-owned factories • 9 service centers Wärtsilä Yuchai Engine Co., Ltd • 1500+ employees Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 series of medium speed engines
5 © Wärtsilä Investors visit Sep. 23 2015 Chinese Economy and Market Update
• 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 gas- fired 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.
6 © Wärtsilä Investors visit Sep. 23 2015 Growth opportunities in China
MOVE TO A URBANIZATION & FOCUS ON GREEN DRIVE FOR SUSTAINABLE SURGING OF MIDDLE ECONOMY INNOVATION & HIGH ECONOMIC GROWTH CLASS END MANUFACTURING PATTERN
• ~ 70% of population • Transform from • Shift to renewable • Move up the labor Invest/export focused will live in the cities and clean energy value chain to domestic by 2035 consumption • Increase energy • Heavy investment in • ~ 200 cities > 1 efficiency and reduce R&D and focus on • Shift to a million habitants pollution domestic brand sustainable, quality & creation efficient growth (6-7 • 700 m middle class • Invest > 8 trillion RMB % GDP growth) by 2020 and 1.4 b by (1.28 trillion USD) in • From “made in 2030 green economy over China” to “innovated • Deepen economic the 12th Five-Year in China” and political reforms Plan Period (2011- 15).
7 © Wärtsilä Investors visit Sep. 23 2015 The most important market for Marine Solutions
POSITIVE GOVERNMENT WORLD LEADING POLICY POSITION DEVELOPMENTS TO MEET CHALLENGES SUPPORTING MARINE INDUSTRY • No.1 trading nation • Shift from Merchant to with biggest offshore and special, • Drive technology shipping fleets from standard low value innovation to complex high value • Accelerate industry • Largest • Increasing focus on fuel restructure to reduce the shipbuilding country efficiency and overcapacity (37% of world order environmental • Develop “Green Ships” book by Jan-Aug performance (high efficiency with low 2015) • Strong demand from emission and fuel domestic ship-owners consumption. from offshore, special, • Push for 80% local content and LNG for marine equipment by 2015
8 © Wärtsilä Investors visit Sep. 23 2015 Power market opportunities for Energy Solutions 9
NATIONAL POLICY STRONG GROWTH WORLD LEADING PUSH FOR CLEAN FROM GAS-FIRED POSITION ENERGY POWER PLANT
• Largest power production & • Develop >1,000 NGDE projects • Current installed gas ~36 GW, will consumption country with 50 GW new capacity by reach ~150 GW by 2020 2020 • Overtook US in 2009 as the • Gas projects are also driven by provincial, local level and big largest investor in clean tech • Increase Gas-fired from 3.9% to SOEs industries 8.3% • 1/3 of power in Beijing (38%) • Leading position in renewable • Construct a strong and smart coming from gas-fired (3.5GW) energy (wind and solar) national grid creates potential for smart • Jiangsu Province installed 5.3 power generation GW with 8 gas-fired GT and 10 CHP co-gen plants
9 © Wärtsilä© Wärtsilä Investors visit Sep. 23 2015 Wärtsilä Services in China
We provide total and 24/7 services Shanhaiguan 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
1010 © ©Wärtsilä Wärtsilä Investors visit Sep. 23 2015 Major Wärtsilä Services workshops in China
Shanghai Guangzhou Hong Kong
• Established: 1999 • Established : 1994 • Established: 1991
• Location: Tangzhen Shanghai • Location: Nansha, Guangzhou • Located in Hong Kong United Dockyards (HUD) • Main activities: • Field service covering – Reconditioning southern China • Supporting visiting vessels, – External Field Services Hong Kong ship owners and – In-situ and Afloat repair • Specialized in servicing ship management – Automation Woodward governors and companies ABB/Napier Turbo Chargers – Commissioning and Start-ups • Workshop reconditioning of entire gensets
11 © Wärtsilä Investors visit Sep. 23 2015 Service cooperation with Chinese shipyards
Shanhaiguan Shanghai Guangzhou 2008 2010 2010
Zhoushan Shenzhen 2011 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)
1414 © Wärtsilä©© WärtsiläWärtsilä 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
Note: 1 CSIC = China Shipbuilding Industry Corporation 28 September 2015 Corporate Presentation 161616© Wärtsilä©© © WärtsiläWärtsilä Wärtsilä China 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
• 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
18 © 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
¾ Largest shipbuilding group in China ¾ Global leader in complete lifecycle and in the world power solutions for marine industry ¾ 10 shipyards covering over 25% of China ¾ Market leader in 4s marine engines and shipbuilding order book gas, DF technologies and solutions, optimized for offshore, LNGC, C&F
W26 W32
W34DF W46F, W46DF
20 © Wärtsilä Investors visit Sep. 23 2015 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 70% 40%
U.S.A 60% Japan
CGT 50% 21.1% GT 22.2% 40%
30% Europe South Korea CGT 27.9% GT 20% 29.4%
10% Others 0% 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 6 8 0 2 4 5 5 5 5 5 6 6 6 6 6 7 7 7 7 7 8 8 8 8 8 9 9 9 9 9 0 0 0 0 0 1 1 1 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 9 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2
Source: Clarksons
24 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
167 3,5 162
150 3,0 s l
e 134 s T s 129128 e 126 G v
123 123 122 122 C f
o 118
117 2,5 n
r 114 o
113 113 i l e l i b 106107 107 M m 101 102 102 102 u
N 95 100 92 93 94 94 94 2,0 88 88 88 82 78 76 75 77 76 76 75 71 71 71 71 69 70 70 68 1,5 64 63 64 59 61 60 57 56 53 54 55 52 50 51 47 46 47 46 46 50 45 1,0 38 31 32 27 23 23 25 0,5 13 10
0 0 0,0
August 2015 contracts: 51 vessels and 1,4 million CGT
Source: Clarksons
25 © Wärtsilä Contracting Activity - Builders
2015 total contracting activity = 692 vessels and 19,0 Million CGT
Builders 2015 YTD, Number of vessels Builders 2015 YTD, CGT
Spain YTD Builders, No of vessels Germany YTD Builders, CGT 1% 3% Finland Vietnam 3% RoW RoW Philippines 2% 5% Philippines 12% 3% 2% Spain 3% China P.R. Netherlands 32% 3% 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
Owners YTD2015 Owners, YTD, No Number of vessels of vessels OwnersYTD 2015 Owners, YTD, CGT CGT
Japan 13% Japan 17%
RoW China P.R. 39% Row 11% 49% China P.R. 10% Greece 9% Greece 9%
Denmark Singapore 9% 5% Norway South Korea 5% Germany 5% Denmark Germany Hong Kong 4% 4% 5% 6%
Source: Clarksons 27 © Wärtsilä $44.68
28Source: © Wärtsilä Bloomberg business 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 30% feasible between 60 and 80 USD/bbl 25% 0%-33% of offshore projects More than 73% of offshore feasible with the price below projects feasible when the price 20% 60 USD/bbl climbs above 80 USD/bbl 15% 25,4% 27,0% 10% 17,5% 5% 12,7% 3,2% 4,8% 4,9% 4,6% 0% <40 USD USD 40-50 USD 50-60 USD 60-70 USD 70-80 USD 80-90 USD 90-100 USD 100+
EIA oil price forecast (North Sea Brent crude, USD/bbl)
160 140 120 100 80 EIA predicts the price of Brent 60 crude to stay below 80 USD/bbl 40 until 2021 20 0 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7 8 9 0 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Source: Clarksons, EIA (oil price development in constant USD values)
30 © Wärtsilä 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.
Efficiency Gas and dual-fuel Environmental solutions solutions N I
R E D A E L H G • Lifecycle solutions for ship owners and operators N G I U R O
E • Integrated solutions for the shipbuilding industry, owners and operators F R F H • The most competitive products and delivery process for the marine industry T O
33 The most complete marine offering on earth
34 A Comprehensive Product Portfolio
Automation Ballast water Compressors Engines & Exhaust gas cleaning management generating sets
Gas systems Gears Inert gas Oil separation Power electric systems
Propulsors Pumps & valves Seals, bearings & Waste & fresh water Ship design services stern tubes management
35 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 • Entrepreneurial mindset. Make things • Fast response during delivery project engineering and project management happen. process
• Standardized products for larger volume • Empower a qualified local organization in markets with lean delivery process through order to capture and deliver customer • Fast engineering documentation local factories satisfaction towards (Chinese) customers. • 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 non- listed 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 Auxpac 16 3.2.2005 launch event Introduction of 2.12.2013 Wartsila20 Genset Ground 15.1.2010 breaking 23.9.2005 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 30.3.2015 st 39 Delivery 1 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
Small Washing Goods Technical area Painting Storage Reception room Quality Insp. 4 3 2 1 5 0
g p p p p p p e e e e
Elec. e e t t t t t t n Test run S S S S S S i Ass. h c t
a Assembly area Big
p Washing s i 0 5 4 3 2 1 Machine
p p p p p p D e e e e e e t Finishing t t t t t S S S S S S
Auxpac 20 & Wartsila 20 Assembly Line Office building. Wartsila 16/20/26 Assembly Line Sanitary facilities.
Total construction area: ~9800 m² Workshop: ~8000 m² Office: ~1800 m² Total site area: ~31000 m²
43 WQDC genset applications
44 © Wärtsilä Wärtsilä’s support throughout WQDC operations
WQDCNetwork Vital Companies Functions Material Production Finance Human Project & Sales & Supply Resource Contract Management Marketing
Wärtsilä Supply Management s r
Quality e m
MS 4 stroke JV Engineering Centre China o t s
Marine Solutions Sales u C
Services
Human Resources
45 Wärtsilä’s support throughout WQDC operations
Wärtsilä Quality & EHS Wärtsilä Supply Management Management Our entire supply base is managed by Wärtsilä work processes and way of working Wärtsilä. From supplier selection, making are fully implemented in WQDC. WQDC uses frame contracts, supplier quality, supplier the QDMS system and participates in Wärtsilä development and sourcing of new suppliers programs such as LEAN, ZIP, safety reviews and other continuous improvement programs
WÄRTSILÄ DESIGN, BRAND & QUALITY Manufactured by WQDC
Wärtsilä Engineering Wärtsilä Service Engineering information for each order will be Full support for the lifecycle and operation of received from Wärtsilä engineering the vessel including the warranty obligations department. WQDC has on site Wärtsilä will be taken care of by Wärtsilä’s global engineering support to facilitate trouble service network. Where ever, when ever! shooting and quick assistance
46 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
Customers inside China for only WQDC scope of WQDC Sales Organization supply
Customers outside China or customers inside China Wärtsilä Marine Solutions with package sales Organization
48 WQDC organisation set-up
Managing Director Assigned by Wärtsilä
Financial Controller Sales Department Assigned by SMDERI
Market development Customer relationship Finance Department Commercial negotiations Business Control & reporting Financial planning Project management Department Accounting & bookkeeping Taxation TS & quotation management Project management Quality & EHS Department Auxpac 16 product ownership Quality Control & Assurance Management systems Classification Material Supply Department EHS
Operative Purchasing Goods reception & warehousing HR & Admin Department Logistics Auxpac 16 sourcing HR Admin Production Department IM-IT Assembly Testing Commissioning 49 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