Events after the reporting period
Wärtsilä and China State Shipbuilding Corporation (CSSC) announced an agreement to establish a joint venture, which will take over Wärtsilä's two-stroke engine business. CSSC will own 70% of the business and Wärtsilä’s ownership will be 30%. Responsibility for servicing Wärtsilä's two-stroke engines will remain with Wärtsilä Services. The partnership will boost the position of Wärtsilä’s two-stroke technology in the marine engine market and provide a strong base for future investments in leading two-stroke technology and customer support. The value of the transaction is approximately EUR 46 million. The financial impact of the deal will be dependent on the timing of the closing and certain related mechanisms. The deal will have a positive effect on Wärtsilä’s continuing operations. The closing of the transaction is subject to the required regulatory approvals, which are expected in the first quarter of 2015. Going forward, the two-stroke engine business will be reported as discontinued operations.
Wärtsilä and China State Shipbuilding Corporation (CSSC) announced an agreement to establish a joint venture company, for manufacturing medium and large bore medium-speed diesel and dual-fuel engines. The CSSC Wärtsilä Engine (Shanghai) Co. Ltd factory will be located in Lingang, Shanghai and is expected to have its first engine ready for delivery by the end of 2015. The Wärtsilä share of the joint venture is 49 per cent and the size of Wärtsilä's equity investment is approximately EUR 27 million.