Building of First, Chinese G-type Engine Confirmed

Shanghai ceremony celebrates signing of contract with CMD

Copenhagen, 20/04/2012

MAN Diesel & Turbo SE Teglholmsgade 41 DK-2450 Copenhagen SV DENMARK www.mandieselturbo.com Group Marketing Further information: Peter Dan Petersen Tel.: +45 33 85 14 70 peterd.petersen@man.eu Graphics and images: Mia Glarborg Tel.: +45 33 85 15 90 mia.glarborg@man.eu

At a recent ceremony in China, CMD (CSSC-MES Diesel Co., Ltd.) held the official signing of the contract to construct the first Chinese-built MAN B&W design Green Series 7G80ME-C9.2 engine. Due for delivery in June 2013, the engine is bound for a 319,000-dwt, ABS class VLCC (Very Large Crude Carrier) to be built by Shanghai Waigaoqiao Shipbuilding Co., Ltd. (SWS) for Maran Tankers of Greece. The G-series engine is hallmarked by its SFOC, energy efficiency and ability to meet all Tier II criteria.
The ceremony was held at the CMD factory in Lingang, Shanghai. It was attended by a large audience of CMD staff and partners, including representatives from Shanghai Waigaoqiao Shipyard, Maran Tankers and MAN Diesel & Turbo, all of whom celebrated the event with commemorative speeches. Ceremony themes In his speech at the ceremony, Qin Wenquan, Chairman of CMD, described the 7G80ME-C9.2 engine rated at 31,150KW as a new, green, marine diesel engine with an ultra-long-stroke and lower speed that follow the design principles of the Mark 9 engine series. He further stated: The G-type engine is a realisation of the most advanced technology, offering advantages in fuel consumption, exhaust emission and energy efficiency. He ended his speech by stating that the order for the 7G80MEC9.2 engine the first such order in China showcases CMDs ability to build largebore, low-speed diesel engines. Goetz Kassing, Managing Director of MAN Diesel & Turbo, China noted the countrys and indeed Shanghais unique maritime heritage in his speech, particularly mentioning the juxtaposition of the Yangtze river, Yangshan deep-water port, Shanghai Waigaoqiao Shipyard, Shanghai Maritime University and CMD, one of the worlds most modern facilities for the production of two-stroke engines. He concluded by praising the cooperation between CMD, MAN Diesel & Turbo, Shanghai Waigaoqiao and Maran Tankers and affirmed his companys strong belief in

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building engines as close as possible to ship construction sites. He called CMD a highly reputable engine builder and portrayed the companys recent success as a clear sign of its competitiveness in todays international market. G-type efficiency CMD Chairman Qin Wenquan also used his speech in Lingang to compare an MAN B&W 7S80ME-C9.2 engine and a G80 engine installed aboard a 319,000-dwt VLCC, where the G80 engine has a greater efficiency of 1%. Assuming optimum running conditions, including an optimum propeller set-up, propeller efficiency can be improved by about 3.6%. Under the same ship-speed conditions, overall running costs can accordingly be reduced by 4.6%, a significant saving that MAN Diesel & Turbo figures suggest can even be bettered, depending on individual circumstances. Again, under the same ship-speed conditions, the EEDI would be reduced by some 8.2% when using the G80 as opposed to S80 engine. Qin Wenquan therefore concluded that the G80ME-C9.2 engine fulfils the demands of high efficiency ships, ensuring that it will eventually become the natural choice for VLCC vessels. Goetz Kassing backed this analysis up, observing that the G80s longer stroke results in a lower rpm for the engine driving the propeller: a reduction from 78 rpm for the S80 engine to 68 rpm for the G80. He further noted that the lower optimum engine speed allows the use of a larger propeller. This, ultimately, is significantly more efficient in terms of engine propulsion and, together with an optimised engine design, reduces fuel consumption and reduces CO2 emissions. Kassing stated that just as MAN B&W S-engines had become first choice for container ships, that so, over time, would G-engines become first choice for bulkers, tankers and even some box ships. The G-type programme The G-type programme entered the market in October 2010 with the entry of the G80ME-C9 model. MAN Diesel & Turbo subsequently expanded the ultra-long-stroke programme in May 2011 with the addition of G70ME-C9, G60ME-C9 and G50ME-B9 models. The G-types have designs that follow the principles of the large-bore, Mark 9 engine series that MAN Diesel & Turbo introduced in 2006. Their longer stroke

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reduces engine speed, thereby paving the way for ship designs with unprecedented high-efficiency. About CMD CMD is a joint venture between investors from Chinese CSSC and CSSC Holdings Ltd., and Mitsui the Japanese ship and engine builder. MAN Diesel & Turbo initially signed a license agreement to produce MAN B&W low-speed engines with the then start-up in January 2006 in Shanghai. CMD has already delivered 152 diesel engines in its relatively short existence, representing 5.36 million BHP, and has established itself as a globally recognised brand. A key partner has been SWS to whom CMD has supplied multiple MAN B&W MC, MC-C and ME-C engines for both bulk carriers and VLCCs, with CMD now, of course, set to construct G-type engines for the latter.

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Pictured at the signing ceremony (standing, from left to right): Kimihiko Sugiura President, CSSC-MES Diesel Co., Ltd. (CMD), Goetz Kassing Managing Director, MAN Diesel & Turbo Shanghai Co., Ltd., Liu Yanbin Trade Relations, Greece-China Association, Wang Yongliang Vice President, Shanghai Waigaoqiao Shipbuilding Co., Ltd., Li Zhushi Executive Vice President, China Association of The National Shipbuilding Industry (CANSI), Wu Qiang Vice President, China State Shipbuilding Corporation (CSSC), Dr. Nikiforos Papadakis Senior Project Manager, Maran Tankers, Gao Kang Vice President, Marine & Design Research Institute of China (MARIC), Wang Lin Vice President, Shanghai Merchant Ship Design & Research Institute (SDARI). Seated (from left to right): Li Junfeng, Vice President CSSC Purchasing Department, Qin Wenquan Chairman, CSSC-MES Diesel Co., Ltd. (CMD)

About MAN Diesel & Turbo MAN Diesel & Turbo SE, based in Augsburg, Germany, is the worlds leading provider of large-bore diesel engines and turbomachinery for marine and stationary applications. It designs two-stroke and four-stroke engines that are manufactured both by the company and by its licensees. The engines have power outputs ranging from 450 kW to 87 MW. MAN Diesel & Turbo also designs and manufactures gas turbines of up to 50 MW, steam turbines of up to 150 MW and compressors with volume flows of up to 1.5 million m/h and pressures of up to 1,000 bar. The product range is rounded off by turbochargers, CP propellers, gas engines and chemical reactors. MAN Diesel & Turbos range of goods includes complete marine propulsion systems, turbomachinery units for the oil & gas as well as the process industries and turnkey power plants. Customers receive worldwide after-sales services marketed under the MAN PrimeServ brand. The company employs around 14,000 staff at more than 100 international sites, primarily in Germany, Denmark, France, Switzerland, the Czech Republic, India and China. MAN Diesel & Turbo is a company of the Power Engineering business area of MAN SE, which is listed on the DAX share index of the 30 leading companies in Germany. Ref. No.: 6510-0275 All data provided in this press release is for information purposes only, explicitly non-binding and subject to changes without further notice.

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