Wärtsilä Corporation, Stock exchange release, 21 April 2016 at 8.25 a.m. EET
Wärtsilä plans to adjust its Marine and Energy businesses to reflect the weak market situation
Wärtsilä plans to realign its organisation, operations and resources to the weakened newbuild market situation and the tough competitive environment. While these plans will mainly affect personnel in Marine Solutions' and Energy Solutions' global operations, common functions in the affected countries will also be reviewed. In addition, Wärtsilä plans to concentrate more of the engine related R&D activities to Finland with the aim of reducing development cycles.The realignment will mean the reduction of approximately 550 jobs, of which some 270 will be in Finland.
In taking the realignment measures, Wärtsilä seeks annual savings in the region of EUR 50 million. The effect of the savings will materialise gradually beginning from the second quarter of 2016, and will take full effect by the end of 2017. The costs related to the restructuring measures will be approximately EUR 50 million.
The market conditions have weakened in Wärtsilä's equipment businesses. Despite the somewhat improved sentiment in the power generation markets, the competitive environment remains tough. Furthermore, the marine market outlook continues to be challenging due to the combined effect of overcapacity of merchant ships, and a continued lack of demand in the offshore segment. In addition, there are risks related to vessel owners negotiating extensions to existing delivery contracts.
"These unfortunate capacity adjustments have to be made to maintain our competitive position in the global market. We will do our utmost to provide support for those individuals whose jobs will be affected by the streamlining. Our commitment to our customers remains solid," says Jaakko Eskola, President & CEO, Wärtsilä Corporation.
The effect of these adjustments will be specified when the consultation processes are initiated in the affected countries according to local practices and legislation.
Currently, Wärtsilä Marine Solutions employs 6,681 people globally and Wärtsilä Energy Solutions employs 958 people globally.
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Wärtsilä in brief:
Wärtsilä is a global leader in advanced technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation and total efficiency, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers.
In 2015, Wärtsilä's net sales totalled EUR 5 billion with approximately 18,800 employees. The company has operations in over 200 locations in more than 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.