W?sil?lans to reduce its manufacturing footprint and to move part of production to China
(Thomson Reuters ONE) - W?sil?orporation STOCK EXCHANGE RELEASE 19 January 2010 at 9.45 EETW?sil?as analysed its manufacturing footprint as announced in October. Toadjust to the fundamental changes in the market W?sil?lans to reduce itsmanufacturing capacity. W?sil?lso plans to move the majority of itspropeller production and auxiliary engine production to China, close to the mainmarine markets. The current propeller manufacturing in Drunen, and the componentmanufacturing DTS in Zwolle, both in The Netherlands, are planned to be closed.The W?sil?0 generating set production in Vaasa Finland is planned to beclosed and moved to China in order to stay competitive in this market.In the course of 2010 W?sil?lans to reduce approximately 1,400 jobs globallywithin the Group. Of these reductions 570 are planned to be in the Netherlands.The remaining reduction will impact various divisions, functions and countriesand will be clarified during the first half of this year. Currently W?sil?mploys 1,561 people in the Netherlands."The world has dramatically changed in a short period of time. China has becomea strong maritime centre and its growth will continue. The low activity in theglobal marine market continued throughout 2009. W?sil?hip Power order intakewas significantly lower than during previous years. Competition in the marketwill intensify. By developing our manufacturing footprint and our businesses forthe future key markets W?sil?ill further improve its competitiveness andservice to our customers in the tightening markets. It is our responsibility toensure W?sil?'s leading position now and in the future," says Ole Johansson,President & CEO.The non-recurring costs related to the restructuring will be approximately EUR140 million. This includes non-cash write offs of approximately EUR 50 millionof which EUR 40 million is recognized in 2009. W?sil?s looking for costsavings of approximately EUR 80-90 million. The effect of the savings will startto materialise gradually during 2010, and will take full effect in the firsthalf of 2011.The formal consultation processes will be initiated in the affected countriesaccording to local practices and legislation. The company will provide supportand consultation as well as assistance in re-employment in the impactedcountries.Already in 2009 W?sil?tilised its flexible operating model to adjust thecapacity to the new market demand and initiated and largely implemented actionsto reduce approximately 600 jobs. W?sil?'s personnel totalled 18,541 at theend of 2009.W?sil?ill continue the manufacturing of large 4-stroke engines in Europe; inVaasa, Finland and Trieste, Italy. The R&D activities in Europe will bemaintained in the current locations. In the Netherlands W?sil?ill establisha Propulsion Technology & Services Centre.Preliminary financial information about 2009 and prospects for 2010W?sil?'s net sales grew 14 % and profitability before non-recurring itemsimproved compared to 2008. In 2010 W?sil?'s net sales will be impacted by themarine market situation and lower order book. Net sales for 2010 will be 10-20%below 2009. Profitability before non-recurring items is expected to beapproximately 9-10%, which is at the upper range of W?sil?'s long termprofitability target.W?sil?ill publish its Financial Statements Bulletin on January 28, 2010 at8.30 am EET.Further information:Mr Ole Johansson, President & CEO, tel +358 10 7095601Mr Raimo Lind, Executive Vice President &CFO, tel +358 10 7095640Mr Atte Palom?, Group Vice President, Communications & Branding, tel +35810 7095599ANALYST AND PRESS CONFERENCEAn analyst and press conference will be held on Tuesday 19 January 2010, at11.30 a.m. Finnish time (9.30 a.m. UK time), at the Hotel Hilton Strand,Ballroom, address John Stenbergin ranta 4, Helsinki. The combined web- andteleconference will be held in English and can be viewed on the internet at thefollowingaddress:http://194.100.179.139/wip/directlink.do?newbrowser=1&pid=3161158To participate in the teleconference please call: +44 (0)20 7162 0125 and enterthe Conference ID: 854584. If you want to ask questions during theteleconference, press the number 1 on your phone to register for a question andthe # -key to withdraw a question. The event title for the call is: WartsilaConference Call. Please be ready to state your details and the name of theconference to the operator. If problems occur, please press the *-key followedby the 0-key. We would recommend that you would register to the conference inadvance at the following address:https://eventreg2.conferencing.com/webportal3/reg.html?Acc=158744&Conf=200492An on-demand version of the webcast will be available on the company websitelater the same day.[HUG#1374629]
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Datum: 19.01.2010 - 02:47 Uhr
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