Finland-based technology major Wärtsilä Corporation has decided to reorganize its marine business into three independent businesses.
The company said that the objective of this change was to accelerate strategy execution, simplify the business structure, and strengthen business presence in the Board of Management.
The new businesses, consisting of Marine Power, Marine Systems and Marine Voyage, are planned to become operational as of July 1, 2020.
In the new operational model, Marine Power will focus on Wärtsilä engine and propulsion solutions. Marine Systems’ offering will consist of gas solutions, exhaust treatment, marine electrical systems, as well as seals and bearings.
Marine Voyage will provide navigation solutions, simulation and training solutions, fleet operation solutions, and ship traffic control solutions. Each business will have lifecycle responsibility for its offerings. Wärtsilä’s Energy Business will continue in its current form.
“I am confident that establishing three independent marine entities, with a stronger focus on the specific needs of their respective markets, will accelerate the execution of our Smart Marine strategy. Our customers will benefit from increased agility and speed in decision-making, as well as an even more empowered and effective frontline,” comments Jaakko Eskola, President & CEO of Wärtsilä Corporation.
Wärtsilä’s financial reporting will be adjusted to reflect the new organisational structure as of the second quarter of 2020.
The structural changes are a continuation of the reshuffling made in 2019, whereby the equipment and service businesses were integrated into one unit.
The year 2019 was characterised by a difficult demand environment and weaker than anticipated financial
performance for Wärtsilä, as explained earlier by Eskola.
Choppy seas are expected in 2020, as such Eskola remains cautious on the demand outlook.
“Looking further ahead, we have a solid basis for future performance thanks to our sizeable order book and service
opportunities arising from our large installed base. Furthermore, we have the means and the solutions, through our
broad offering of flexible technologies and strong in-house capabilities, to enable growth in the adoption of
renewable energy sources, and to contribute to the decarbonisation of the maritime industry,” he said announcing the company’s results for 2019.
The tech major’s order intake for 2019 stood at EUR 5.3 billion, down -16% year-on-year. The company’s order book at the end of 2019 was EUR 5,878 million, down -5% year-on-year.
Net sales were pretty much in line with the previous year standing at EUR 5,170 million.