Wärtsilä Corporation Interim Report q2 2014

Strategic projects, acquisitions, joint ventures, and expansion of the network

In June, Wärtsilä and Transmashholding agreed that Wärtsilä would sell its 50 per cent share in the joint venture Wärtsilä TMH Diesel Engine Company LLC to Transmashholding, the other joint venture party. The joint venture was established for the manufacture of modern and multipurpose diesel engines to be used in shunter locomotives, as well as in various marine and power applications. The divestment of the joint venture will enable Wärtsilä to concentrate on its core areas of expertise, namely complete lifecycle power solutions for the marine and energy markets. The transaction has received the relevant regulatory approvals, and has been closed in the beginning of July. The value of the agreement is approximately EUR 12 million. The transaction will not have a significant impact on Wärtsilä’s operating result.

In April, Wärtsilä inaugurated its new electrical & automation test centre in Stord, Norway. The new facility is one of the largest test centres in Europe dedicated specifically to electrical and automation systems for marine and offshore applications. With the new testing and training facilities, Wärtsilä can carry out full-scale testing and verification of existing and new electrical & automation solutions.

Construction of the new production facilities for Wärtsilä Yuchai Engine Co., Ltd, the Chinese joint venture owned 50/50 by Wärtsilä and Yuchai Marine Power Co. Ltd., and Wärtsilä’s new fully-owned manufacturing facility in Brazil is proceeding according to plan. The inauguration ceremonies will take place in the third quarter of 2014, and the first deliveries from these factories are scheduled to be made during this current year.

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