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Wärtsilä Announces Manufacturing Moves

Posted on January 19, 2010

As announced in October of 2009, Wärtsilä has analyzed its manufacturing footprint, adjusting to the fundamental changes in the market. Wärtsilä plans to reduce its manufacturing capacity and move the majority of its propeller production and auxiliary engine production to China, close to the main marine markets.

The current propeller manufacturing in Drunen, and the component manufacturing DTS in Zwolle, both in The Netherlands, are planned to be closed. The Wärtsilä 20 generating set production in Vaasa Finland is planned to be closed and moved to China in order to stay competitive in this market. In the course of 2010 Wärtsilä plans to reduce approximately 1400 jobs globally within the group. Of these reductions 570 are planned to be in the Netherlands. The remaining reduction will impact various divisions, functions and countries and will be clarified during the first half of this year. Currently Wärtsilä employs 1561 people in the Netherlands.

"The world has dramatically changed in a short period of time. China has become a strong maritime center and its growth will continue. The low activity in the global marine market continued throughout 2009. Wärtsilä Ship Power order intake was significantly lower than during previous years. Competition in the market will intensify. By developing our manufacturing footprint and our businesses for the future key markets Wärtsilä will further improve its competitiveness and service to our customers in the tightening markets. It is our responsibility to ensure Wärtsilä's leading position now and in the future," says Ole Johansson, President & CEO.

Already in 2009 Wärtsilä utilized its flexible operating model to adjust the capacity to the new market demand and initiated and largely implemented actions to reduce approximately 600 jobs. Wärtsilä's personnel totalled 18 541 at the end of 2009. Wärtsilä will continue the manufacturing of large 4-stroke engines in Europe; in Vaasa, Finland and Trieste, Italy. The R&D activities in Europe will be maintained in the current locations. In the Netherlands Wärtsilä will establish a Propulsion Technology & Services Centre.

For more information: www.wartsila.com

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