Wärtsilä - Company Announcement

Wärtsilä plans to reduce its manufacturing footprint and to move part of production to China

Wärtsilä Corporation STOCK EXCHANGE RELEASE 19 January 2010 at 9.45 EET

Wärtsilä has analysed its manufacturing footprint as announced in October. To
adjust to the fundamental changes in the market Wärtsilä plans to reduce its
manufacturing capacity. Wärtsilä also plans to move the majority of its
propeller production and auxiliary engine production to China, close to the main
marine markets. The current propeller manufacturing in Drunen, and the component
manufacturing DTS in Zwolle, both in The Netherlands, are planned to be closed.
The Wärtsilä 20 generating set production in Vaasa Finland is planned to be
closed and moved to China in order to stay competitive in this market.

In the course of 2010 Wärtsilä plans to reduce approximately 1,400 jobs globally
within the Group. Of these reductions 570 are planned to be in the Netherlands.
The remaining reduction will impact various divisions, functions and countries
and will be clarified during the first half of this year. Currently Wärtsilä
employs 1,561 people in the Netherlands."The world has dramatically changed in a short period of time. China has become
a strong maritime centre and its growth will continue. The low activity in the
global marine market continued throughout 2009. Wärtsilä Ship Power order intake
was significantly lower than during previous years. Competition in the market
will intensify. By developing our manufacturing footprint and our businesses for
the future key markets Wärtsilä will further improve its competitiveness and
service to our customers in the tightening markets. It is our responsibility to
ensure Wärtsilä's leading position now and in the future," says Ole Johansson,
President & CEO.

The non-recurring costs related to the restructuring will be approximately EUR
140 million. This includes non-cash write offs of approximately EUR 50 million
of which EUR 40 million is recognized in 2009.  Wärtsilä is looking for cost
savings of approximately EUR 80-90 million. The effect of the savings will start
to materialise gradually during 2010, and will take full effect in the first
half of 2011.

The formal consultation processes will be initiated in the affected countries
according to local practices and legislation. The company will provide support
and consultation as well as assistance in re-employment in the impacted
countries.

Already in 2009 Wärtsilä utilised its flexible operating model to adjust the
capacity to the new market demand and initiated and largely implemented actions
to reduce approximately 600 jobs. Wärtsilä's personnel totalled 18,541 at the
end of 2009.

Wärtsilä will continue the manufacturing of large 4-stroke engines in Europe; in
Vaasa, Finland and Trieste, Italy. The R&D activities in Europe will be
maintained in the current locations. In the Netherlands Wärtsilä will establish
a Propulsion Technology & Services Centre.

Preliminary financial information about 2009 and prospects for 2010

Wärtsilä's net sales grew 14 % and profitability before non-recurring items
improved compared to 2008. In 2010 Wärtsilä's net sales will be impacted by the
marine market situation and lower order book. Net sales for 2010 will be 10-20%
below 2009. Profitability before non-recurring items is expected to be
approximately 9-10%, which is at the upper range of Wärtsilä's long term
profitability target.

Wärtsilä will publish its Financial Statements Bulletin on January 28, 2010 at
8.30 am EET.

Further information:
Mr Ole Johansson, President & CEO, tel +358 10 7095601
Mr Raimo Lind, Executive Vice President &CFO, tel +358 10 7095640
Mr Atte Palomäki, Group Vice President, Communications & Branding, tel +358
10 7095599

ANALYST AND PRESS CONFERENCE
An analyst and press conference will be held on Tuesday 19 January 2010, at
11.30 a.m. Finnish time (9.30 a.m. UK time), at the Hotel Hilton Strand,
Ballroom, address John Stenbergin ranta 4, Helsinki. The combined web- and
teleconference will be held in English and can be viewed on the internet at the
following
address:http://194.100.179.139/wip/directlink.do?newbrowser=1&pid=3161158
To participate in the teleconference please call: +44 (0)20 7162 0125 and enter
the Conference ID: 854584. If you want to ask questions during the
teleconference, press the number 1 on your phone to register for a question and
the # -key to withdraw a question. The event title for the call is: Wartsila
Conference Call. Please be ready to state your details and the name of the
conference to the operator. If problems occur, please press the *-key followed
by the 0-key. We would recommend that you would register to the conference in
advance at the following address:
https://eventreg2.conferencing.com/webportal3/reg.html?Acc=158744&Conf=200492
An on-demand version of the webcast will be available on the company website
later the same day.


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