Wärtsilä to switch 4-stroke manufacturing to Finland

2022-07-23T21:01:21+00:00 July 23rd, 2022|Technology|

Engineering group Wärtsilä is to significantly reduce its manufacturing capability at Trieste, Italy.

As a result, the company intends to centralise its European 4-stroke engine manufacturing at Vaasa, Finland.

Ending the manufacturing in Trieste is expected to impact on around 450 employees with potential redundancies. The estimated full annual cost savings will be about €35 mill by 2025. The associated transformation costs are expected to be around €130 mill, out of which the cash flow impact is about €75 mill.

Discussions between Wärtsilä, employee representatives. as well as Italian authorities and institutions will start in line with local legislation.

“It is a part of our strategy to continuously monitor our manufacturing capacity and footprint to ensure that our operational efficiency remains competitive. Over the years we have continuously consolidated our manufacturing footprint in Europe.

“With our new European manufacturing footprint, we are taking the next step in strengthening our competitiveness and creating a structure enabled for future growth. Italy and Trieste will continue to be very important for Wärtsilä in many areas, as we aim to be part of shaping the de-carbonisation of marine and energy industries,” explained Håkan Agnevall, Wärtsilä President and CEO (pictured).

“Under the challenging circumstances of the past years, our employees in Trieste have done a commendable job. However, we need to centralise our manufacturing footprint in Europe to further improve our competitiveness.

“I would like to underline that Italy and Trieste will remain very important for Wärtsilä. Going forward our site in Trieste will focus on R&D, sales, project management, sourcing, service and training activities. A main part of our employees in Trieste are engaged in these activities today.

“In the development of the future sustainable solutions for marine and energy industries, we are investigating possibilities for future investments in Trieste related to the development of technology for sustainable fuels,” added Roger Holm, President of Wärtsilä’s Marine Power business.

These changes will not impact Wärtsilä’s engine portfolio and the service levels and commitment towards customers will remain intact. The supply chain will remain largely as-is today, including the Italian suppliers, to ensure the company maintains the competitiveness of its supply chain.