Wärtsilä - Company Announcement

Wärtsilä plans to adjust its Marine and Energy businesses to reflect the weak market situation

Wärtsilä Corporation, Stock exchange release, 21 April 2016 at 8.25 a.m. EET

Wärtsilä plans to adjust its Marine and Energy businesses to reflect the weak
market situation

Wärtsilä plans to realign its organisation, operations and resources to the
weakened newbuild market situation and the tough competitive environment. While
these plans will mainly affect personnel in Marine Solutions' and Energy
Solutions' global operations, common functions in the affected countries will
also be reviewed. In addition, Wärtsilä plans to concentrate more of the engine
related R&D activities to Finland with the aim of reducing development
cycles.The realignment will mean the reduction of approximately 550 jobs, of
which some 270 will be in Finland.

In taking the realignment measures, Wärtsilä seeks annual savings in the region
of EUR 50 million. The effect of the savings will materialise gradually
beginning from the second quarter of 2016, and will take full effect by the end
of 2017. The costs related to the restructuring measures will be approximately
EUR 50 million.

The market conditions have weakened in Wärtsilä's equipment businesses. Despite
the somewhat improved sentiment in the power generation markets, the competitive
environment remains tough. Furthermore, the marine market outlook continues to
be challenging due to the combined effect of overcapacity of merchant ships, and
a continued lack of demand in the offshore segment. In addition, there are risks
related to vessel owners negotiating extensions to existing delivery contracts.

"These unfortunate capacity adjustments have to be made to maintain our
competitive position in the global market. We will do our utmost to provide
support for those individuals whose jobs will be affected by the streamlining.
Our commitment to our customers remains solid," says Jaakko Eskola, President &
CEO, Wärtsilä Corporation.

The effect of these adjustments will be specified when the consultation
processes are initiated in the affected countries according to local practices
and legislation.

Currently, Wärtsilä Marine Solutions employs 6,681 people globally and Wärtsilä
Energy Solutions employs 958 people globally.


Media contacts:

Roger Holm
President, Marine Solutions
Wärtsilä Corporation
Tel. +358 10 709 5447
roger.holm@wartsila.com

Javier Cavada
President, Energy Solutions
Wärtsilä Corporation
Tel. +358 10 709 5297
javier.cavada@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 and Media Relations
Wärtsilä Corporation
Tel: +358 10 709 5637
natalia.valtasaari@wartsila.com


Wärtsilä in brief:
Wärtsilä is a global leader in advanced technologies and complete lifecycle
solutions for the marine and energy markets. By emphasising sustainable
innovation and total efficiency, Wärtsilä maximises the environmental and
economic performance of the vessels and power plants of its customers.
In 2015, Wärtsilä's net sales totalled EUR 5 billion with approximately 18,800
employees. The company has operations in over 200 locations in more than 70
countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
www.wartsila.com


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