Wärtsilä Reorganizing Marine Business Into Three Segments

Wärtsilä is reorganizing its Marine Business into three independent businesses segments with the goal of accelerating strategy execution and simplify structure.

The new businesses, consisting of Marine Power, Marine Systems and Marine Voyage, will be operational as of July 1. The move will also strengthen the businesses’ presence in the Board of Management, the company said.

In the new operational model, Marine Power will focus on Wärtsilä engine and propulsion solutions. Marine Systems’ offering will consist of gas solutions, exhaust treatment, marine electrical systems, as well as seals and bearings. Marine Voyage will provide navigation solutions, simulation and training solutions, fleet operation solutions, and ship traffic control solutions. Each business will have lifecycle responsibility for its offerings. Wärtsilä’s Energy Business will continue in its current form.

The change in structure follows moves made in 2019 that saw the equipment and service businesses integrated in an effort to strengthen the focus on complete lifecycle solutions.

“Wärtsilä is committed to leading the way towards a more sustainable maritime future. We have today the broadest offering for the marine markets, and I am confident that establishing three independent marine entities, with a stronger focus on the specific needs of their respective markets, will accelerate the execution of our Smart Marine strategy,” said Jaakko Eskola, president & CEO of Wärtsilä. “Our customers will benefit from increased agility and speed in decision-making, as well as an even more empowered and effective frontline.”

Roger Holm, previously president of Wärtsilä Marine Business and executive vice president, will assume the role of president of Marine Power and executive vice president. Since joining Wärtsilä in 1997, Holm has held a number of key management positions in the marine, service, and information management organizations.

Tamara de Gruyter has been appointed president of Marine Systems and executive vice president. De Gruyter joined LIPS in 1999, which was acquired by Wärtsilä in 2002. She has since held several management positions within Wärtsilä’s marine and services

businesses. As of November 2019, she has had a key role in driving Wärtsilä’s transformation, in addition to heading the recently established Portfolio Business unit.

Sean Fernback has been appointed president of Marine Voyage and executive vice president starting May 4. He joins Wärtsilä from Navico, where he has most recently held the position of chief technology officer and was responsible for driving the company’s digital marine agenda.

Both de Gruyter and Ferback will join Holm on the company’s Board of Management.

“The marine markets are evolving at a rapid pace, driven by technology development and the regulatory framework. With this change, we provide our businesses more autonomy to drive their operations. By speeding up decision-making and simplifying the organisation, we will accelerate the execution of our Smart Marine strategy and increase the value we create for our customers. I believe that we will greatly benefit from strengthening business presence within the Board of Management, and I am pleased to welcome two new members to our leadership team,” Eskola said.

Wärtsilä’s financial reporting will be adjusted to reflect the new organizational structure as of the second quarter of 2020. Adjusted comparison figures will be provided prior to the publication of the Half year financial report January-June 2020.