Chinese Licensees Expand J-ENG Engine Manufacturing Capacity

Japan Engine Corporation (J-ENG) engine licensees in China, Guangzhou Diesel Engine Factory (GDF) and Zhejiang Yungpu Diesel Engine (YDE), are expanding their UE engine manufacturing capacity in response to the strong engine demand in China's rapidly growing shipbuilding market.

GDF has completed its new Guangzhou factory (Guangdong Province, China) which has been fully operational since October 2025. Furthermore, GDF is planning to expand its facilities at its Jingjiang factory (Jiangsu Province, China), which has been operational since 2022, and is gradually increasing its production capacities through operations at both Guangzhou and Jingjiang factory.

GDF is improving production efficiency through continuous production of the same type of engine, and with support from J-ENG, including technical assistance and enhanced supply of key components. Based on these activities, GDF aims to produce approximately 200 sets of UE engines in Year 2028.

Meanwhile, YDE is also expanding and strengthening its production capacity by adding manufacturing lines and upgrading facilities at its existing factory (in Zhejiang Province, China). YDE is shifting to increased production, leveraging its current strong order backlog, which is driven by continuous orders for small engines, primarily 33cm bore class engines suitable for domestic vessels in China. YDE aims to produce approximately