Page 23: of Maritime Reporter Magazine (July 2015)

ärtsilä President & “It is de? nitely affecting our business, proximately two-thirds of its business is industry that are doing quite well. Gas,

CEO Björn Rosen- because offshore is an important part of maritime related, a high percentage ex- the LNG side has been fantastic. A huge gren was beaming our business,” said Rosengren, noting posure to a notoriously cyclical market. number of vessels have been contracted at the introduction that Wärtsilä counts business in the off- But Rosengren credits the global eco- with many more on the way. When we

Wof the Wärtsilä 31 to shore sector not just from the offshore nomic meltdown of 2008 with the silver talk about gas at Wärtsilä, we become a the world at last month’s Norshipping, operators but all of the surrounding and lining of learning to do more with less. little bit excited. We love gas. We think but in a one-on-one on the sidelines with supporting industries. “Too low oil pric- When addressing the realities of the this is the fuel of the future.”

Maritime Reporter & Engineering News ing will stop a lot of projects, and the new marketplace, Rosengren is blunt: Ultimately though, the positioning of he had more sobering yet pragmatic investment climate becomes less attrac- “I don’t believe in miracles. We learned Wärtsilä as a one-stop-shop, life-cycle view regarding current market condi- tive.” from 2008 that surviving in tough times sales and service solutions company tions and the path forward to this marine He notes that the low oil price has means adapting your organization, en- to its power hungry clients is the key power conglomerate. provided a modicum of relief on ship- suring that you are strong in niches to long-term survival and prosperity in “It is clear that Asia has been a driv- ping companies that have struggled in where things are happening … you have ? ckle markets.

ing force for some time, though we are recovering from the world economic to bet on the right horses. I think where “We are a solution company, to help now starting to see a slowdown in Chi- collapse of 2008 – particularly with re- we are now, since 2008 is the new nor- our customers enhance their business- na, which affects global industry,” said quired investment to run cleaner opera- mal. You have to learn to survive and es,” said Rosengren. “We take a life-

Rosengren. “We have seen a lot of im- tions – but that the contracting activity develop in the business climate that we cycle approach, meaning that the ser- provement in the United States, with the for new commercial vessels is low at the have today.” vice business comes into everything that

GDP and the impact of the Shale Gas moment. Part of this adjustment for Wärtsilä was we do. It means we want to work with revolution. Europe has been very tough “Today we talk a lot about ef? ciency, the broadening of its base, a products equipment to make sure it is running ef- for some time,and market has been where as before 2008 we talked about and services growth both organically ? ciently.” tough since 2008, but I think the market capacity.”Many positive things have and via acquisition that has fast-tracked has adapted, with a focus on ef? ciency happened since 2008 as companies have its evolution from an engine builder to a Steady Investment and lowering operational costs.” laser focused on ef? ciencies and cost complete maritime and offshore systems For technology companies such as

The lingering low price of oil is hav- management, while cutting environmen- solutions provider. In step with this strat- Wärtsilä, taking the long-range view is ing a greater impact on Wärtsilä business tal impact. “Many successful shipping egy was a major emphasis of focus on necessary particularly when times are than a China slowdown, as the company companies have managed to lower their aftermarket sales and service, which to- tough, because when the market slows is heavily involved in the offshore sec- operating costs signi? cantly, helping not day accounts for approximately 50% of its is not prudent to stop investing on tor. According to Rosengren, only two only the companies but the environment, its annual business. new technology.

years ago roughly 40% of its ship power as fuel ef? ciency equates to lower CO2 “The service business gives us stabili- “We are investing as much as we did business came from the offshore sector, in the atmosphere. ty; it gives us daily contact with all of the before the crisis; 3% of our turnover shrinking last year to 28%; shrinking customers; and it is also the most pro? t- today goes to R&D, and we make sure further to 11% during the ? rst quarter of Balance able part of the business,” said Rosen- that we do not cut from R&D when we 2015. When looking at Wärtsilä in total, ap- gren. “There are still areas in the marine are cost-conscious. Innovation and new

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