Wärtsilä Ship Power reorganised amid redundancies

20 Jul 2015
Wärtsilä Propulsion Test Centre in Tuusula, Finland

Wärtsilä Propulsion Test Centre in Tuusula, Finland

Wärtsilä has renamed its Ship Power division Marine Solutions, and announced plans to make around 600 redundancies, as it reorganises the unit in light of the “sluggish global marine market”.

Wärtsilä Marine Solutions, which currently employs 7,217 people worldwide, said it was seeking annual savings of around €40 million. The savings will materialise gradually beginning from the third quarter of 2015, and will take full effect by the end of 2016. Non-recurring costs related to the restructuring will be approximately €25-30 million.

Jaakko Eskola, president of Marine Solutions and senior executive vice president, Wärtsilä Corporation, commented: "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.

“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.”

The effect of these adjustments will be specified when the consultation processes are initiated in the affected countries according to local practices and legislation. Wärtsilä said that some 160 redundancies will be made in Finland, with a portion of the global lay-offs to be realised through retirements.

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