Manufacturing

Due to the production volume level dropping temporarily at Vaasa Delivery Centre, Wärtsilä started a consultation process regarding temporary lay-offs on 5 November. The drop in volume level is due to lower than expected order intake at the beginning of the year for some of the products manufactured in Vaasa, and changes in project timing. The consultation process has been completed and the temporary lay-offs will concern more than 700 persons. The temporary lay-offs will be around 40 days on an individual level.

On 1 November Wärtsilä announced its plans to move the assembly and testing of controllable pitch propellers and gear boxes from Norway to China and Italy respectively. A group consisting of members from the local management and Wärtsilä have reached an agreement for a management buyout with regards to component manufacturing. Wärtsilä and Olvondo Industries, the newly formed company, have now completed the detailed negotiations and signed the sale agreement of machinery and equipment, a long-term lease agreement for the premises, and a long-term supply frame agreement. The arrangement involves 88 Wärtsilä Norway employees within the gear and propeller manufacturing and the costs related to the transaction have been included in the fourth quarter non-recurring items.

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