Wartsila selling out

Finland’s Wartsila is disposing of its holding in a Chinese two-stroke engine manufacturer.

The ship power group said it will sell out of its joint venture Qingdao Qiyao Wartsila MHI Linshan Marine Diesel (QMD), which produces large low-speed engines.

Its holding will be transferred to partner and majority shareholder Qingdao Qiyao Linshan Power Development, owned by China Shipbuilding Industry Corporation (CSIC).

“The value of the transaction is not significant,” Wartsila said.

The deal comes as a result of last week’s agreement for CSSC to form a new joint venture to take over Wartsila’s two-stroke engine business.

QMD will continue to produce engines under licence from the CSSC joint venture.