Wartsila to Concentrate on Marine and Service

Wartsila recently completed the first part of the business analysis launched at the end of July, an analysis which was launched to help refocus the corporation on markets athat weill help the company reach its targeted operating margin of 7-8% is to be reached by the end of 2005. The group will seek future growth in the area of ship power and service.

Wartsila has secured significant power plant orders in recent weeks.

The total order book of the Power Divisions at the end of August was $1.7 million which was 14% higher than a year ago. The demand in the market, however, is clearly lower than the capacity available in the Group, which is why the capacity will be adapted and the number of employees reduced accordingly.

Wartsila to reduce the production of high-speed engines In its present form the high-speed engine business has not met the expectations. Wartsila is therefore planning to discontinue the production of the Wartsila 200 and 220SG engines in Mulhouse, France. The manufacturing of special products will continue in Surgeres. Wartsila France will be stepped up as a service company and will continue to provide service for the customers of the high-speed engines as earlier.

Wartsila announced last month its intent to start a cooperation with Volvo regarding service and sales of Volvo Penta marine engines. In 2002 Wartsila's net sales were $2.8 billion and the number of employees 12,500.

Maritime Reporter Magazine, page 22, Oct 2003

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