“Weak market situation” prompts realignment of Wärtsilä’s Ship Power business
Wärtsilä announced a realignment of its Ship Power business, now renamed Marine Solutions. The reorganization, triggered by “sluggish global marine market situation” will see the reduction of approximately 600 jobs across Wärtsilä Marine Solutions' global operations, of which some 160 will be in Finland
Wärtsilä says it hopes the realignment will bring annual savings of around €40 million, the effect of which is expected to gradually materialize beginning from the third quarter of 2015, and will take full effect by the end of 2016. The nonrecurring costs related to the restructuring measures will be approximately €25-30 million, the company said.
Wärtsilä Marine Solutions currently employs 7,217 people globally. A portion of the job reductions will be realized through retirements.
Jaakko Eskola, President, Marine Solutions, Senior Executive Vice President, Wärtsilä Corporation, said, “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 and 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.”
Eskola continued, “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 organization, our commitment to our customers remains absolutely solid.”