Wärtsilä - Company Announcement

Wärtsilä enters rail market through joint venture with Transmashholding in Russia

Wärtsilä Corporation, Company Announcement, 27 May 2010 at 5.45 pm EET

The joint venture between Wärtsilä and Transmashholding is a strategically
important step for Wärtsilä to broaden its business into the rail market and
gives Wärtsilä a stronger industrial foothold in Russia.

Wärtsilä has signed a joint venture agreement with the Russian company
Transmashholding (TMH) to manufacture modern and multipurpose diesel engines in
Russia. The engines, including a new and technically advanced version of the
Wärtsilä 20 -engine, will be used in shunter locomotives and for various marine
and power applications. The two companies will jointly engineer the railway
application. Wärtsilä and TMH will also evaluate broadening the activities of
the joint venture to include the development and manufacturing of other diesel
engine models in the future.

The value of Wärtsilä's investment in the joint venture is approximately EUR 30
million and production of the engines is planned to start in 2012. The closing
of the agreement is subject to the relevant regulatory approvals, which are
expected during the coming months.

The agreement was signed in Lappeenranta, Finland, in the presence of the Prime
Minister of the Russian Federation, Mr Vladimir Putin, and Finland's Prime
Minister, Mr Matti Vanhanen."This joint venture between Wärtsilä and Transmashholding is a strategically
important step for Wärtsilä to broaden its business into the rail market. It
offers Wärtsilä a promising opportunity to leverage its high competence and
expertise in advanced engine and modern manufacturing technology. This creates
the potential to increase sales of Wärtsilä's products and services beyond our
traditional marine and energy markets," says Mr Ole Johansson, President and CEO
of Wärtsilä Corporation."Wärtsilä has strong experience and a proven track record for implementing and
developing advanced diesel engine and modern manufacturing technology," says
Andrey Andreev, General Director of Transmashholding.

According to the agreement, Wärtsilä and TMH will set up a 50/50 holding company
to establish and operate a new engine factory in Penza, Russia for assembling
and testing engines, and for the production of certain larger engine components.
Annual production is estimated to reach 250-300 engines and will serve the rail,
marine and power plant markets. A large share of the production will be targeted
toward the Russian market, with a smaller share likely to be exported outside
Russia.

A new version of the Wärtsilä 20-engine, which is being especially developed for
shunter locomotives, will be manufactured in the new factory. Shunter
locomotives are used in rail yards to assemble and disassemble trains, and to
move train cars.

The joint venture gives Wärtsilä a stronger industrial foothold in Russia, which
offers significant opportunities for engine sales to the railway market, with
Russian Railways, one of the biggest railway companies in the world, currently
planning a modernisation of its locomotive fleet. There are also opportunities
in the offshore, marine and power plant markets, while the growth prospects in
the services market are also of interest to Wärtsilä.

The joint venture is the latest step in the co-operation between the two
companies. In 2007, Wärtsilä and Bryansk Engineering Works (BMZ), a
manufacturing subsidiary of Transmashholding, signed a licence agreement for BMZ
to manufacture Wärtsilä low-speed marine diesel engines.


For further information, please contact:

Mr Ole Johansson
President & CEO
Wärtsilä Corporation
Tel: +358 10 709 5601
ole.johansson@wartsila.com <mailto:ole.johansson@wartsila.com>

Mr Per Hansson
Vice President, Corporate Planning
Wärtsilä Corporation
Tel: +358 10 709 5668
per.hansson@wartsila.com <mailto:per.hansson@wartsila.com>

Mr Atte Palomäki
Group Vice President, Communications & Branding
Wärtsilä Corporation
Tel: +358 40 547 6390
atte.palomaki@wartsila.com <mailto:atte.palomaki@wartsila.com>

For investor information, please contact:

Josephine Mickwitz
Director, Investor Relations
Wärtsilä Corporation
Tel: +358 400784889
josephine.mickwitz@wartsila.com <mailto:josephine.mickwitz@wartsila.com>


Transmashholding in brief
Transmashholding is Russia's leading rolling stock manufacturer.  Its products
also include marine engines and small modular power plants. In 2009, net sales
were EUR 1.9 billion. Transmashholding has its headquarters in Moscow and is a
privately owned company whose major shareholders include Russian Railways.
Alstom has agreed to acquire 25 per cent of TMH in a transaction to be closed
during 2010.www.tmholding.ru <http://www.tmholding.ru/>

Wärtsilä in brief
Wärtsilä is a global leader in complete lifecycle power solutions for the marine
and energy markets. By emphasising technological innovation and total
efficiency, Wärtsilä maximises the environmental and economic performance of the
vessels and power plants of its customers. In 2009, Wärtsilä's net sales
totalled EUR 5.3 billion with more than 18,000 employees. The company has
operations in 160 locations in 70 countries around the world. Wärtsilä is listed
on the NASDAQ OMX Helsinki, Finland.www.wartsila.com <http://www.wartsila.com/>

Wärtsilä in Russia
Wärtsilä Vostok is an official representative office of Wärtsilä Corporation in
Russia that offers its customers complete lifecycle power solutions and services
for the marine and energy markets. The first representative office was opened in
1979 in Moscow. Currently, Wärtsilä in Russia employs 132 people and has
operations in four locations; Moscow, Vladivostok, Murmansk, and St. Petersburg
where the headquarters are located.


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