Wärtsilä has announced that as part of a general group restructuring it will discontinue production of its 200 and 220SG engines in Mulhouse, France.
As part of its goal to adapt to market conditions and high demand volatility, reciprocating engine specialist Wärtsilä has undergone a series of restructuring changes, mainly in its power division, in which it regards its core activities’ as power plant development and management, electrical systems and automation, and project management.
The company has also discontinued production of its 200 and 220SG engines in Mulhouse, France, and is to downsize its staff worldwide by 400-500. It believes that in the power plant business, offering fewer products enables it to better react to a volatile market. Demand in the power plant market is lower than the capacity available in the group, and capacity is to be adapted accordingly.
These moves are intended to improve the power division’s profitability, currently standing at around 3-4%, to an operating margin of 7-8% to be achieved by the end of 2005.
Wärtsilä is looking to marine power and servicing for future growth. It has also signed an agreement with Finnish company Citec Engineering from whom it will in future purchase all its power plant engineering services.
The company announced in August that it would in future be selling and servicing large Volvo Penta engines.