China State Shipbuilding Co and Finland's Wartsila Corp, one of the world's largest ship power manufacturers by revenue, signed an agree ment to establish a joint venture for manufacturing medium and large bore medium speed diesel and dual-fuel engines.

The CSSC Wartsila Engine (Shanghai) Co Ltd factory will be located at Lingang, Shanghai, and is expected to have its first engine ready for delivery by the end of 2015.

The company will in particular target the growing offshore and LNG markets, as well as the market for very large container vessels. The Wartsila share of the joint venture is 49 percent and the size of Wartsila's equity investment is 12 million euros ($16.24 million).