Wärtsilä recently completed the first part of the business analysis launched at the end of July, a 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.
Wärtsilä has secured significant power plant orders in recent weeks. The total order book of the Power Divisions at the end of August was EUR 1,500 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.
Wärtsilä to reduce the production of high-speed engines
In its present form the high-speed engine business has not met the expectations. Wärtsilä is therefore planning to discontinue the production of the Wärtsilä 200 and 220SG engines in Mulhouse, France. The manufacturing of special products will continue in Surgères.
Wärtsilä 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. Wärtsilä announced last month its intent to start a co-operation with Volvo regarding service and sales of Volvo Penta marine engines.
In 2002 Wärtsilä's net sales were EUR 2.5 billion and the number of employees 12,500.