Due to the re-organisation of the two-stroke operations, Wärtsilä has commenced reporting the two-stroke business as discontinued operations.
In July, Wärtsilä and China State Shipbuilding Corporation (CSSC) signed an agreement to establish a joint venture to takeover Wärtsilä’s 2-stroke engine business. The Winterthur Gas & Diesel Ltd (WinGD) joint venture has received the required regulatory approvals and was finalised in January 2015. Wärtsilä’s ownership of WinGD is 30% and the value of the transaction is approximately EUR 46 million. In August, Wärtsilä divested its shares in the joint venture Qingdao Qiyao Wärtsilä MHI Linshan Marine Diesel Co. Ltd. The joint venture company was established for manufacturing large, low-speed marine diesel engines. Wärtsilä’s shares in the joint venture were transferred to the majority shareholder, Qingdao Qiyao Linshan Power Development Co Ltd, a company fully owned by China Shipbuilding Industry Corporation. The transaction price was not significant.
The financial impact of re-organising the two-stroke business is described in the discontinued operations table included in this financial statements bulletin. The effect on Wärtsilä’s continuing operations is positive.