Wärtsilä Negotiates Restructuring in the Netherlands
Wärtsilä will outsource manufacturing of engine components in Zwolle, the Netherlands, selling its production capacity to an outside supplier. At the same time Wärtsilä has decided to further develop its service activities at Zwolle. The solution, which is still subject to approval by the personnel, will make it possible to retain about 290 jobs in Zwolle. Wärtsilä announced in November 2001 that it planned to terminate its operations in Zwolle and to move engine manufacturing to Italy. Wärtsilä also proposed to relocate its service activities to the service unit in Schiedam. Wärtsilä Nederland has altogether 810 employees: 660 in Zwolle and 150 in Schiedam. Wärtsilä entered a EUR 90 million provision in its 2001 accounts to cover the costs of these restructuring measures.
The Allure of Power
Continuity is a valuable asset in the marine field, especially so in relation to the most essential products pivotal to vessel design and operation. The diesel engine producers' adeptness at enhancing existing, successful designs at intervals through power and performance upgradings is a prime example of the development potential built into ships' machinery, making for longevity of the series involved. The ensuing continuity of the product line offers practical benefits to the client market and also to the licensors and manufacturers, given the huge investment costs entailed in developing entirely new engines and putting the requisite tooling in place.
