Wärtsilä Industrial Operations

Wärtsilä Industrial Operations focuses mainly on the assembling, test running, and finishing of products. Our business model, which is strongly connected to a broad network of suppliers, guarantees flexibility in capacity. Being close to the customer is important, as is the continuous emphasis on technology leadership in our R&D activities.

Wärtsilä Industrial Operations designs and manufactures engines, generating sets, electrical & automation equipment, integrated environmental and efficiency products and systems, propellers, gears, as well as seals and bearings as integrated deliveries.

Wärtsilä’s global supplier network supports flexibility in manufacturing

Through close co-operation, excellent relations, and the sharing of information with our suppliers, the supply of components and market-conform lead times are secured. Wärtsilä has around 200 main suppliers globally, and our network is continuously being developed further. Our sourcing strategy is to focus on carefully selected suppliers, with an emphasis on performance, innovation, and a presence close to our manufacturing units.

Manufacturing footprint

The manufacturing of our medium-speed main engines is concentrated at the delivery centres in Vaasa, Finland and Trieste, Italy. Low-speed main engines are, because of their large size and the resulting transportation limitations, built under license close to shipyards in various parts of the world. Currently, we have 19 low-speed engine licensees located in Asia, Europe and South America. Our auxiliary engines are manufactured in Shanghai, China. The manufacturing of our propulsion components takes place mainly in China, Norway, the UK, Italy, India and Japan. Automation equipment is manufactured in Norway, while our Ecotech-Centre for environmental solutions is situated in Finland.

Wärtsilä’s manufacturing model follows the market demand to ensure more flexible global capacity. As structural changes continue in our end markets, we continue to expand our presence in our key markets, especially in the BRIC countries. This enables us to be better positioned in these emerging markets and allows savings to be achieved in both production and transportation costs.

Wärtsilä Industrial Operations
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Main changes in the footprint during 2011

The measures initiated in 2010 to adapt manufacturing capacity to both the structural changes in the market and a lower demand environment were nearly finalised in 2011. We have taken several steps forward in expanding our global presence during the year. A new factory for controllable pitch propeller production was set up in China, and a joint venture with Jiangsu CuiXing Marine Offshore Engineering Co. Ltd. for the manufacturing of Wärtsilä 26 and Wärtsilä 32 medium-speed engines was initiated, also in China.

To read about our products and R&D, please refer to the section: Towards more sustainable solutions.

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