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February 23, 2010 No.1338

VINASHIN Completes First Mitsubishi-UE Marine Diesel under License
-- Progressive Production Expansion Slated --

Tokyo, February 23, 2010 - Vietnam Shipbuilding Industry Corporation (VINASHIN) has completed production of its first Mitsubishi-UE low-speed marine diesel under a technology licensing arrangement with Mitsubishi Heavy Industries, Ltd. (MHI). Production was undertaken at Bach Dang Diesel Engine Manufacturing Co., Ltd., a VINASHIN affiliate. Plans call for Bach Dang Diesel Engine Manufacturing to manufacture three more UE engines this year and then progressively expand production, leveraging its annual production capacity potential up to 200,000 brake horsepower (bhp).

The first Mitsubishi-UE engine completed is the "7UEC45LA" with cylinder bore of 450 millimeters (mm), featuring a power output of 6,230 kW (8,400 bhp) at 158 rpm (revolutions per minute). The unit will be installed as the main engine on a 22,500 DWT (deadweight ton) bulk carrier of VINASHIN Petroleum Investment and Transport Joint Stock Company (SHINPETROL) under construction at the shipyard of Bach Dang Shipbuilding Industry Corporation, a leading member of the VINASHIN Group.

The UE engine unit also marks the first low-speed marine diesel engine manufactured in Vietnam. In view of the Vietnamese government's current focus on advancement of shipbuilding and related industries, completion of the domestically made marine engine is a significant event for Vietnam to demonstrate the country's technological advancement to foreign countries as well as the home market. Under license from MHI, VINASHIN is to manufacture, sell and provide after-sale services for low-speed marine diesel engine models with a wide range of power outputs: Mitsubishi UEC-LA, LS, LSII and LSE engines with cylinder bores ranging from 330 to 850 mm.

VINASHIN is a state-owned corporation, established in 1996, engaging in shipbuilding and production of ship-related machinery. The company has about 50 subsidiaries, including financially independent major shipbuilding companies. VINASHIN concluded the licensing agreement with MHI in 2005.

Besides VINASHIN, MHI has licensed its Mitsubishi-UE engine technology to three Chinese companies: Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Company Ltd. (QMD); Yichang Marine Diesel Engine Plant (YMD), a group company of China Shipbuilding Industry Corporation (CSIC); and Zhejiang Yungpu Heavy Machinery Co., Ltd. (YUNGPU) in Ningbo, Zhejiang Province.

Since the introduction of a market economy under the "Doi Moi" policy adopted in 1986, the Vietnamese economy has marked nearly steady development. Since 2000 it has sustained growth in the range of 6 to 8% every year and direct investments from overseas have increased robustly, as illustrated by 214.9% growth in 2008 over the previous year, luring more than USD64 billion. Against this backdrop, the Vietnamese shipbuilding industry shows signs of rapid growth. By strengthening its relationship with VINASHIN, MHI aims to increase its UE engines' share in the global market.

 

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