Wärtsilä to adjust its Ship Power business to reflect the weak market situation
(Thomson Reuters ONE) -
Wärtsilä Corporation, Company announcement, 17 July 2015 at 8.25 am EET
Wärtsilä to adjust its Ship Power business to reflect the weak market situation
Wärtsilä's Ship Power business, today renamed Marine Solutions, plans to realign
its organisation, operations and resources in response to the sluggish global
marine market situation. These plans will affect personnel in all functions of
Wärtsilä Marine Solutions' global operations. The realignment will mean the
reduction of approximately 600 jobs, of which some 160 will be in Finland. A
portion of the reductions will be realised through retirements.
In taking these measures, Wärtsilä seeks annual savings in the region of EUR 40
million. The effect of the savings will materialise gradually beginning from the
third quarter of 2015, and will take full effect by the end of 2016. The non-
recurring costs related to the restructuring measures will be approximately EUR
25-30 million.
"The marine industry has been slow in recovering from the global economic crisis
and new shipbuilding contracting is weak. At the same time, the offshore oil &
gas industry has been adversely affected by lower oil prices. In addition, there
are risks related to vessel owners negotiating extensions to existing delivery
contracts. The combined impact of these developments has created a challenging
market situation for the entire marine sector.
These unfortunate capacity adjustments have to be made in this current
environment of low demand in order for us to maintain our competitive position
in the global market. Despite streamlining the organisation, our commitment to
our customers remains absolutely solid," says Jaakko Eskola, President, Marine
Solutions, Senior Executive Vice President, Wärtsilä Corporation.
These realignment plans are aimed at adjusting Wärtsilä's Marine Solutions
business to be able to efficiently respond to the needs of its various customer
segments. 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 7,217 people globally.
Media contacts:
Jaakko Eskola
Senior Executive Vice President & President, Ship Power
Wärtsilä Corporation
Tel. +358 10 709 5623
jaakko.eskola(at)wartsila.com
Atte Palomäki
Executive Vice President, Communications & Branding
Wärtsilä Corporation
Tel. +358 10 709 5599
atte.palomaki(at)wartsila.com
For investor information, please contact:
Natalia Valtasaari
Director, Investor Relations
Wärtsilä Corporation
Tel: +358 40 187 7809
natalia.valtasaari(at)wartsila.com
Wärtsilä in brief:
Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximizes the environmental and economic performance of the
vessels and power plants of its customers.
In 2014, Wärtsilä's net sales totalled EUR 4.8 billion with approximately
17,700 employees. The company has operations in more than 200 locations in
nearly 70 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com
This announcement is distributed by GlobeNewswire on behalf of
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(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Wärtsilä Oyj Abp via GlobeNewswire
[HUG#1939507]
Unternehmensinformation / Kurzprofil:
Datum: 17.07.2015 - 07:26 Uhr
Sprache: Deutsch
News-ID 407507
Anzahl Zeichen: 4213
contact information:
Town:
Helsinki
Kategorie:
Business News
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"Wärtsilä to adjust its Ship Power business to reflect the weak market situation"
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