SHANGHAI - ABB Group, the leading power and automation technology group, inaugurated a global manufacturing base in Shanghai on Thursday.

The facility will produce the company's advanced "green" marine-propulsion system, in response to surging demand in the world's biggest shipbuilding country.

The new base is one of four facilities dedicated to manufacturing and servicing marine-propulsion systems. The plants manufacture the company's "Azipod" azimuth thrusters - electrical propellers which deliver thrust in any chosen direction - which can help reduce fuel consumption of vessels by 25 percent while improving their ability to maneuver.

Some key components of the propulsion system, such as permanent magnetic motors, struts, and propellers, will be provided by ABB's factories and suppliers in China.

"As the largest shipbuilding country, China has been going through a (manufacturing) process from simple vessels such as basic bulkers (bulk freighters) and tankers to the most sophisticated types. And Shanghai, as the largest harbor in the region with a strong shipbuilding foundation, plays an important role in this process," said Claudio Facchin, president of ABB North Asia and China.

"It is also a further demonstration of ABB's commitment to China and another example of the company's 'In China, for China and the World' strategy," said Facchin.

Last year, China overtook South Korea to become the world's leading shipbuilder, manufacturing a total deadweight capacity (TDC) of 65.6 million tons, accounting for 43 percent of the TDC of global shipbuilding.

In terms of orders, China also beat South Korea with a TDC of 75.2 million tons in orders, 54 percent of the new orders around the world.

As part of the 12th Five-Year Plan (2011-2015) China said that it aims to move from being a great sea power to a shipbuilding superpower, indicating increased opportunities for the domestic shipbuilding industry.

"The new base will apply advanced technology and top-quality management standards. It will help us meet the fast-growing demand from Chinese shipyards for high-end vessels as they shift their focus in this direction while, at the same time, allowing us to get closer to customers in other key shipbuilding markets such as Japan and South Korea," said Heikki Soljama, global head of ABB's marine and cranes business unit.

ABB has supplied electric power and propulsion systems to ships for more than 60 years. One of its key innovations was the world's first AC (alternating current) electric propulsion system in 1983, which remains a leading technology today.

The company's products include propulsion units, power generation and distribution units, drilling drives, and onboard drives.

Soljama said that ABB provides about 50 percent of electric propulsion power units for vessels worldwide and 80 percent of electric pod-propulsion systems.

More than 400 vessels and floating structures have been equipped with ABB's variable-speed electric propulsion systems.

Also 100 vessels have been equipped with Azipod units, which have accumulated over 7 million operating hours in some of the most demanding marine applications icebreakers, luxury cruise ships, research vessels and offshore supply vessels, as well as drilling rigs, ferries and mega-yachts.

Meanwhile, ABB's Azipod C system has been installed in a variety of vessels, including those used on the ferry route between Yantai and Dalian.