Wärtsilä - Company Announcement

Wärtsilä and Yuchai Marine Power establish joint venture for manufacturing medium-speed engines in China

Wärtsilä Corporation, Company Announcement, 20 December 2012 at 3.50 pm (EET)

Wärtsilä and Yuchai Marine Power Co. Ltd. (YCMP), a subsidiary of Guangxi Yuchai
Group, have signed an agreement in Zhuhai, China to establish a 50/50 joint
venture for manufacturing medium-speed marine engines in Zhuhai City, Guangdong
Province. The joint venture will serve the increasingly dominant Chinese
shipbuilding industry, with the focus being on the assembly and testing of
Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 engines. Operations are planned to
start in 2014. The value of Wärtsilä's investment in the joint venture is
approximately EUR 17 million. The joint venture is subject to approval by the
relevant authorities.

The joint venture with YCMP is a further step in Wärtsilä's strategy to
continuously strengthen its competitiveness, to capitalize on significant growth
opportunities, and increase its focus on the offshore and special segments in
China, the world's largest shipbuilding country."By forging a strong partnership with Yuchai, China's leading producer and
market leader for high-speed diesel engines, we can continue to broaden our
customer base and further expand our market share in China. This is an important
step for securing our market leadership position for medium-speed engines," says
Björn Rosengren, President & CEO of Wärtsilä Corporation at today's signing
ceremony where he signed the joint venture agreement with partners from Guangxi
Yuchai Group and YCMP."This investment demonstrates Wärtsilä's commitment to supply competitive engine
products to its customers in China. Furthermore, it is fully aligned with
China's central government's 12(th) Five-Year Plan to significantly increase
locally produced content for marine equipment," adds James Han, President of
Wärtsilä China."Yuchai is proud to be in partnership with Wärtsilä, a world leader in providing
engine and power solutions. We share the same commitment to serving the growing
Chinese market with products that deliver the best economic and environmental
value to our customers. The joint venture is another step forward in Yuchai's
strategy to grow our business through partnership with international market
leaders," said Mr. Yan Ping, Chairman of Guangxi Yuchai Group who also attended
today's signing ceremony.

Wärtsilä in China

Wärtsilä has been present in China for more than 20 years, through its fully
owned subsidiary and long-term licensing agreements. To serve the world's
largest shipbuilding region, Wärtsilä has established joint ventures for
propeller and auxiliary generating set production with leading Chinese
shipbuilding groups and a joint venture for automation services. Wärtsilä also
manufactures thrusters at its 100 percent owned company facilities, while low-
speed engines are produced by eight licensees and by a joint venture company.
The recent acquisitions of Cedervall in 2011 and Hamworthy in 2012 have further
strengthened Wärtsilä's leading position in global markets, notably in
marine services and offshore, marine gas applications, as well as environmental
solutions.

In the marine market, the leading Chinese ship owners and shipyards are
Wärtsilä's customers. Wärtsilä Services provides service and maintenance for its
customers from eight locations in China, the largest of which is in Shanghai. In
the energy markets, Wärtsilä has delivered power plants producing a total of
3,500 MW of electricity to customers in China. Including Wärtsilä joint venture
companies, there are currently more than 2000 Wärtsilä employees working in
China.


For further information, please contact:

Mr Jaakko Eskola
President, Ship Power & Executive Vice President
Wärtsilä Corporation
Tel. +358 10 709 5634
jaakko.eskola@wartsila.com

Ms Pauliina Tennilä
Director, Investor Relations
Wärtsilä Corporation
Tel. +358 40 570 5530
pauliina.tennila@wartsila.com

Mr Atte Palomäki
Executive Vice President, Communications & Branding
Wärtsilä Corporation
Tel. +358 40 547 6390
atte.palomaki@wartsila.com

Contact for Wärtsilä in China:

James Han
President
Wärtsilä China Ltd.
Tel: +86-21-5858 5500 ext. 888
james.han@wartsila.com


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 2011, Wärtsilä's net sales
totalled EUR 4.2 billion with approximately 18,000 employees. The company has
operations in nearly 170 locations in 70 countries around the world. Wärtsilä is
listed on the NASDAQ OMX Helsinki, Finland.
www.wartsila.com


[HUG#1666616]