August 31, 2004
Wartsila sells high speed engine line product rights
Wartsila says it has sold the product rights of the high-speed Wartsila 200 and 220 line of high speed engines to Dresser Inc.'s Waukesha Engine business unit. Wartsila says it will continue to provide service for the engines. It says the "transaction does not include transfer of personnel.
Wartsila says it is also negotiating the transfer of its production in Mulhouse, France, where the 200/220 line is manufactured, to "another company." That company would then take on part of the factory's personnel. Wartsila's production in Mulhouse ceases at the end of 2004. The Mulhouse unit has a current workforce of approximately 450. Wartsila France is to concentrate on service.
Wartsila says these moves are part of its ongoing restructuring program and the company's aim of focusing on its strong products. The main products in Wartsila's engine portfolio are medium-speed and low-speed engines. Wartsila entered a EUR 130 million restructuring provision in its 2003 accounts. "The measures described above for their part confirm the sufficiency of this provision," it says.