Wärtsilä - Company Announcement

Wärtsilä and China State Shipbuilding Corporation to join forces in 2-stroke engine joint venture

Wärtsilä Corporation, Company announcement, 18 July 2014 at 8:20 am EET

Wärtsilä and China State Shipbuilding Corporation to join forces in 2-stroke
engine joint venture

Wärtsilä and China State Shipbuilding Corporation (CSSC) have signed an
agreement to establish a joint venture, which will take over Wärtsilä's 2-stroke
engine business. Through the agreement, CSSC will own 70% of the business
through its affiliate CSSC Investment and Development Co. Ltd, while Wärtsilä
will hold a 30% ownership position. The parties will co-operate in 2-stroke
engine technology, marketing, sales, and service activities. The parties have
agreed to transfer CSSC's whole position as shareholder to a joint venture
established by an entity connected with the Municipal Government of Shanghai and
CSSC.

Responsibility for servicing Wärtsilä's 2-stroke engines will remain with
Wärtsilä Services through its global network to support customers in a more
dedicated and efficient way. The joint venture parties will support Wärtsilä
Services by providing global ship owners with complete solutions of advanced 2-
stroke technologies.

The value of the transaction is approximately EUR 46 million. The financial
impact of the deal will be dependent on the timing of the closing and certain
related mechanisms. The deal will have a positive effect on Wärtsilä's
continuing operations. The closing of the transaction is subject to the required
regulatory approvals, which are expected during the first quarter of 2015.

The joint venture will be domiciled in Switzerland, and the head office will
remain at the present 2-stroke engine headquarters in Winterthur. The current 2-
stroke engine business management team will remain in place.

The joint venture will assume ownership of Wärtsilä's 2-stroke engine
technology, and will continue to develop and promote sales of the engine
portfolio with the full support of both partners.

The objective of the partnership is to combine the strengths of the two
partners, both of whom are major players in the global marine sector. The
participation of CSSC, the largest shipbuilding conglomerate in China, will
accelerate the company's growth in important Asian markets, while retaining its
position as an international supplier to the global shipping industry. The
partnership will enhance the position of Wärtsilä's 2-stroke technology in the
marine engine market, and will provide a strong base for future investments in
leading 2-stroke technology and customer support."We have enjoyed good co-operation with CSSC for many years, and we are
convinced that by joining forces we can better serve the needs of our global
customers. CSSC shares our vision for the future of the 2-stroke marine engine
market, and we feel that this agreement will benefit both parties as well as the
entire shipping sector. By enhancing the sales volume of Wärtsilä's 2-stroke
engines, product development can be accelerated and critical new engine
solutions can be brought to the market much faster than earlier," says Jaakko
Eskola, Senior Executive Vice President, Ship Power, Wärtsilä Corporation."We are very pleased that this agreement has been made and we look forward to
working closely with Wärtsilä in this joint venture project. Wärtsilä is a
company that we admire as a technology leader, and as a supplier that has
provided economic and environmental benefits to ship owners and operators
through its high quality products," says Wu Qiang, Vice President, CSSC.


For further information please contact:

Jaakko Eskola
Senior Executive Vice President & President, Ship Power
Wärtsilä Corporation
Tel. +86 21 5858 5500
jaakko.eskola@wartsila.com

Atte Palomäki
Executive Vice President, Communications & Branding
Wärtsilä Corporation
Tel. +358 10 709 5599
atte.palomaki@wartsila.com



For investor information, please contact:

Natalia Valtasaari
Director, Investor Relations
Wärtsilä Corporation
Tel: +358 10 709 5637
natalia.valtasaari@wartsila.com



CSSC in brief

China State Shipbuilding Corporation (CSSC) is a government-owned shipbuilding
conglomerate engaged in shipbuilding, ship-repair, shipboard equipment
manufacturing, and marine design and research in China. Through subsidiaries
CSSC provides tankers, containerships, passenger ferries, self-unloading ships,
deck machinery, lifeboats, diesel engines, and anchors. It also builds warships
for the Chinese Navy. In addition CSSC exports ships and other products
worldwide. Major enterprises include Shanghai Shipbuilding Company, Guangzhou
Shipbuilding Company, Jiujiang Shipbuilding Company, and the publicly traded
China CSSC Holdings Limited. CSSC was founded in 1999.
www.cssc.net.cn/en/



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 maximizes the environmental and economic performance of the
vessels and power plants of its customers. In 2013, Wärtsilä's net sales
totalled EUR 4.7 billion with approximately 18,700 employees. The company has
operations in more than 200 locations in nearly 70 countries around the world.
Wärtsilä is listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com


[HUG#1830256]