Wärtsilä ending engine manufacturing in Trieste
By Jack Burke19 July 2022
Decision will impact 450 employees
Wärtsilä will end manufacturing in Trieste, Italy and centralize its 4-stroke engine manufacturing in Europe to Vaasa, Finland.
Ending manufacturing in Trieste is expected to impact approximately 450 employees. The company estimates annual cost savings are approximately €35 million by 2025 and the associated transformation costs are expected to be approximately €130 million, out of which the cash flow impact is approximately €75 million. The discussions between Wärtsilä, employee representatives as well as Italian authorities and institutions will start in line with Italian legislation.
“It is a part of our strategy to continuously monitor our manufacturing capacity and footprint to ensure that our operational efficiency remains competitive,” said Håkan Agnevall, president and CEO of Wärtsilä. “Over the years we have continuously consolidated our manufacturing footprint in Europe. With our new European manufacturing footprint, we are taking the next step in strengthening our competitiveness and creating a structure enabled for future growth. Italy and Trieste will continue to be very important for Wärtsilä in many areas as we aim to be part of shaping the decarbonization of marine and energy industries.”
The changes now planned will not impact Wärtsilä’s engine portfolio and the service levels and commitment to customers will remain intact, the company said. The supply chain will remain largely as-is today, including our Italian suppliers, ensuring that we maintain the competitiveness of our supply chain.
“Under the challenging circumstances of the past years, our employees in Trieste have done a commendable job,” said Roger Holm, President of Wärtsilä’s Marine Power business. “However, we need to centralize our manufacturing footprint in Europe to further improve our competitiveness. I would like to underline that Italy and Trieste will remain very important for Wärtsilä. Going forward our site in Trieste will focus on R&D, sales, project management, sourcing, service and training activities. A main part of our employees in Trieste are engaged in these activities today. In the development of the future sustainable solutions for marine and energy industries, we are investigating possibilities for future investments in Trieste related to the development of technology for sustainable fuels.”