J-ENG signs another licensee in China

Japan Engine Corp. (J-ENG) has signed a license agreement to let Guangzhou Diesel Engine Factory Co. manufacture and sell J-ENG’s UE engines.

The license covers all engines with a cylinder bore of 33 to 50 cm (1655 to 14 240 kW) of the UE low-speed engines developed by J-ENG.

J-ENG reports that GDF has already received an order for the 6UEC35LSE-C1 type engine for feeder container ships built by the Chinese Shipyard, and it is scheduled to be completed in July 2022. GDF has already received orders for more than 30 units, centered on UEC42LSH-Eco-D3 type engine, UEC50LSH-Eco-C2 type engine.

J-ENG granted GDF to the license on manufacturing and sales of UE engines. (Image: J-ENG)

Founded in 1911, China’s GDF is a medium-speed (4-cycle) engine manufacturer with the largest market share in China. The company produces about 350 units a year, including marine main engines and auxiliary equipment.

“In order to meet the increasing demand for main engines for coastal vessels in China, which has been increasing in size in recent years, the company has recently added a new lineup of UE low-speed (2-cycle) engines to further discover new customers and expand its business,” the companies said in a news release.

J-ENG said it has positioned China, where the shipbuilding industry is growing and developing rapidly, as one of its priority markets, and has been promoting business development through both exporting a single main engine and developing and nurturing new Chinese licensees. The company said it has delivered about 120 units to Chinese shipyards.　

With this license to GDF, J-ENG has three UE Engine licensees in China, including CSE and YHM. The company has also launched a new organization specializing in licensing business in order to strengthen the responsiveness of the rapidly expanding licensing business, the company said.

J-ENG said it will continue to be the only global licensor in the world with an “integrated system from development to design, manufacturing, sales, and after-sales service.” The company said it plans to expand market share by supplying high-value-added products that incorporate high economic efficiency and environmental friendliness.