Posted on July 18, 2022
Wärtsilä said the move was an efficiency measure that would save costs, improve cash flow and further consolidate the firm’s manufacturing centres, in addition to potentially cutting jobs of some 450 staff engaged in the company’s four-stroke manufacturing operations in Trieste, Italy.
“Ending the manufacturing in Trieste is expected to impact approximately 450 employees with potential redundancy. The estimated full annual cost savings are approximately €35.0M (US$35.1M) by 2025 and the associated transformation costs are expected to be approximately €130M, out of which the cash flow impact is approximately €75M,” a statement from Wärtsilä read.
Discussions over the mass redundancy will include Wärtsilä, employee representatives and Italian authorities and will conform with Italian legislation, the company said.
Wärtsilä said it will still maintain a presence in Italy, with its offices there including staff from the company’s research and development, sales, project management, sourcing, service and training divisions.
“A main part of our employees in Trieste are engaged in these activities,” Wärtsilä Marine Power president Roger Holm said. “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.”
Wärtsilä said the relocation of its manufacturing from Italy to Finland would not affect the company’s engine portfolio or its services.
“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,” Wärtsilä president and chief executive Håkan Agnevall said.
In related news, this week Russian media have reported that a group of former Wärtsilä employees who worked for the company in Russia have started a company offering IT system services to vessels.
The new company, known as Evolution of Marine Digital Technologies (EMCT), is reportedly headed up by the former Transas COO and general director and is offering technical support to current Wärtsilä customers while aiming to bring replacement products for Wärtsilä systems to Russian-friendly markets in the future.
Wärtsilä ceased all operations in Russia in March following Russia’s invasion of Ukraine, and posted a €200M (US$201M) write-off in the first quarter of 2022. Wärtsilä purchased Transas in 2018 for €210M.
