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Wartsila plans to reduce its manufacturing footprint and to move part of production to China |
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Wednesday, 20 January 2010 |
 Wärtsilä has analysed its manufacturing footprint as announced in October. To adjust to the fundamental changes in the market Wärtsilä plans to reduce its manufacturing capacity.
Wärtsilä also plans to move the majority of its propeller production
and auxiliary engine production to China, close to the main marine
markets. The current propeller manufacturing in Drunen, and the
component manufacturing DTS in Zwolle, both in The Netherlands, are
planned to be closed. The Wärtsilä 20 generating set production in
Vaasa Finland is planned to be closed and moved to China in order to
stay competitive in this market.
In the course of 2010 Wärtsilä plans to reduce approximately 1,400 jobs
globally within the Group. Of these reductions 570 are planned to be in
the Netherlands. The remaining reduction will impact various divisions,
functions and countries and will be clarified during the first half of
this year. Currently Wärtsilä employs 1,561 people in the Netherlands.
“The world has dramatically changed in a short period of time. China
has become a strong maritime centre and its growth will continue. The
low activity in the global marine market continued throughout 2009.
Wärtsilä Ship Power order intake was significantly lower than during
previous years. Competition in the market will intensify. By developing
our manufacturing footprint and our businesses for the future key
markets Wärtsilä will further improve its competitiveness and service
to our customers in the tightening markets. It is our responsibility to
ensure Wärtsilä’s leading position now and in the future,” says Ole
Johansson, President & CEO.
The non-recurring costs related to the restructuring will be
approximately EUR 140 million. This includes non-cash write offs of
approximately EUR 50 million of which EUR 40 million is recognized in
2009. Wärtsilä is looking for cost savings of approximately EUR 80-90
million. The effect of the savings will start to materialise gradually
during 2010, and will take full effect in the first half of 2011.
The formal consultation processes will be initiated in the affected
countries according to local practices and legislation. The company
will provide support and consultation as well as assistance in
re-employment in the impacted countries.
Already in 2009 Wärtsilä utilised its flexible operating model to
adjust the capacity to the new market demand and initiated and largely
implemented actions to reduce approximately 600 jobs. Wärtsilä’s
personnel totalled 18,541 at the end of 2009.
Wärtsilä will continue the manufacturing of large 4-stroke engines in
Europe; in Vaasa, Finland and Trieste, Italy. The R&D activities in
Europe will be maintained in the current locations. In the Netherlands
Wärtsilä will establish a Propulsion Technology & Services Centre.
Source: Wartsila
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