Japan Engine Corporation (J-Eng) has concluded a license agreement to grant the rights to manufacture and sell UE series Engines to Guangzhou Diesel Engine Factory (GDF) in China.
The license is applied to all models with a cylinder bore of 33cm to 50cm (1,655 kW to 14,240kW) of the UE Engines, which is a low speed two-stroke engine developed by J-ENG. As soon as the license agreement was concluded, GDF had already received an order for the 6UEC35LSE-C1 type engine for feeder container ship built by the Chinese shipyard as the first engine, and it is scheduled to be completed in July 2022. In addition, GDF has already received orders for more than 30 units, mainly the latest UEC42LSH-Eco-D3 type engine as well as the UEC50LSH-Eco-C2. GDF plans to increase the production volume while gradually expanding its lineup.
GDF is a medium speed (four-stroke) engine manufacturer with top market share in China, founded in 1911 and with a manufacturing record about 350 units per year, including marine main and auxiliary engines. GDF aims to develop new customers and expand its business field by newly offering low speed (two-stroke) UE engines, in order to meet the growing demands for main engines for coastal vessels in China, which have been increasing in size.
In recent years, J-Eng has positioned China as a priority market, where the shipbuilding industry is growing and developing rapidly, and is promoting its business by exporting main engines and developing and growing new Chinese licensees. As a result, J-Eng has accumulated a delivery record of about 120 units to Chinese shipyards.
With GDF, J-Eng now has three UE Engine licensees in China, including CSE 1 and YHM, and it has launched a new organisation specialising in licensing operations to strengthen the response to the rapidly expanding license business.
J-Eng will continue to strengthen cooperation with licensee partners, claiming to be the only global licensor with “integrated structures covering all stages from development to designing, manufacturing, sales, and after sales services.” It will aim to further expand its market share by supplying high value added products with high reliability, high economic efficiency, and environmental friendliness.
