Marine Log

December 7, 2006

Wartsila to acquire SCHIFFKO

Wartsila Corporation has signed an agreement to acquire the German ship design company group SCHIFFKO.

SCHIFFKO is privately-owned and today has annual net sales totalling approximately EUR 4 million and some 25 employees.

SCHIFFKO specializes in the planning and design of ships especially in the container, research and offshore vessel segments. It also provides consultancy including project management and also all kinds of supervisory work for shipowners and shipyards utilizing SCHIFFKO's extended global maritime network of partners and experts.

The company has a strong reputation and market position in these segments.

SCHIFFKO is located in Hamburg, Germany, but operates globally.

Jaakko Eskola, Group VP, Ship Power, Wartsila Corporation, says the acquisition supports Wartsila's strategic focus of growing as a system integrator and provider of total solutions to the shipping and shipbuilding market. The acquired business will add ship design expertise to Wartsila's wide product and service offering.

The acquisition of SCHIFFKO supports the development of Wartsila's low-speed engine business in Asia and especially in the Chinese market.

Berend Pruin, Chairman of SCHIFFKO and chief representative of its shareholders, stated: "We think our customers will benefit markedly from the broader offering and resources the Wartsila network brings. For SCHIFFKO's design business, its customers and our employees, the acquisition will offer enhanced opportunities as part of Wartsila's total service offering and global network."

SCHIFFKO has 50 years experience in planning and design in the marine field. It has been involved in far more than 2500 ship design projects in 60 countries over the world. The SCHIFFKO group of companies includes SCHIFFKO GmbH Forschung und Entwicklung maritimer Systeme and SCHIFFKO GmbH Multifunktionales Ingenieurbuero als Maritimes Innovationszentrum (SCHIFFKO).

The deal is planned to close in fourth quarter 2006.