Sulzer Forms Diesel Joint Venture With Italian And German Shipyards
Sulzer Brothers Ltd. has agreed to sell a majority of the shares of its subsidiary Sulzer Diesel Ltd. in equal parts to Fincantieri-Cantieri Navali Italiani SpA of Trieste, Italy, and a German consortium of Bremer Vulkan AG of Bremen, and Deutsche Maschinen- und Schiffbau AG of Rostock. The remaining shares will be held by Sulzer Brothers Ltd. and the management of Sulzer Diesel Ltd.
According to Sulzer, the new shareholding structure provides a stable, long-term solution to maintaining the Sulzer Diesel name as a leading force in the world market for low- and medium-speed diesel engines for marine propulsion, marine auxiliary and stationary power plant applications. The company said the shareholding structure is strong and will be capable of providing the continuity required in an industry whose products are expected to have a long service life.
Sulzer also said the new shareholding structure will enable its diesel engines and their development to become even more integrated into the world marine industry. The new shareholders will be able to impart a much greater understanding of the shipbuilding industry and its requirements for diesel engines.
The company name will be changed to New Sulzer Diesel Ltd., and Sulzer's traditional business in low- and medium-speed diesel engines for marine propulsion and diesel power plants will continue. The present management team will be retained, and the headquarters will remain in Winterthur, Switzerland. The engine products will also retain "Sulzer" as a trade name, and thus will be referred to as Sulzer diesel engines. New Sulzer Diesel Ltd. will have a share capital of 100 million Swiss francs.
A research-and-development agreement was also established by New Sulzer Diesel Ltd. with its Japanese licensee, Diesel United Ltd.
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