Strategic projects, acquisitions and joint ventures

In the beginning of 2012, Wärtsilä finalised the acquisition of Hamworthy. The acquisition brings important growth synergies to Wärtsilä in the offshore, marine gas applications and environmental solutions markets. Hamworthy has been divided into two business lines; Flow & Gas solutions and Environmental solutions and the integration into Wärtsilä's Ship Power business is moving according to plan. Wärtsilä's target is to double the net sales for Flow & Gas solutions and Environmental solutions over the next five years. The total consideration for the company was EUR 456 million, while the cash flow from the acquisition was EUR 389 million due to Hamworthy's cash balance at closing.

In March 2012, Wärtsilä signed a contract to acquire the assets and business of MMI Boiler Management Pte Ltd., the Singapore-based company specialising in the service and maintenance of boilers for marine and industrial applications. The purchase price is approximately EUR 3 million.

In December 2012 Wärtsilä and Yuchai Marine Power Co. Ltd. signed an agreement in Zhuhai, China to establish a 50/50 joint venture for manufacturing medium-speed marine engines in Zhuhai City, Guangdong Province. The joint venture will serve the increasingly dominant Chinese shipbuilding industry, with the emphasis being on the assembly and testing of Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 engines. Operations are planned to start in 2014.

Wärtsilä Qiyao Diesel Company, a joint venture company manufacturing Wärtsilä 20 auxiliary engines, is planning to expand its production capacity. The planned joint venture between Wärtsilä and Jiangsu CuiXing Marine Offshore Engineering Co. Ltd. has been discontinued.

Wärtsilä TMH Diesel Engine Company LLC, a joint venture owned 50/50 by Wärtsilä and Transmashholding, has begun construction of a modern factory located in Penza, Russia. The new plant is expected to be ready to start production in the second half of 2013, and will provide world-class assembly and manufacturing facilities. The joint venture will give Wärtsilä a stronger industrial foothold in Russia.

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