Wärtsilä
Power plants, marine propulsion systems, maintenance services | |
Revenue | €5.842 billion (2022)[1] |
---|---|
−€26 million (2022)[1] | |
−€32 million (2022)[1] | |
Total assets | €6.606 billion (2022)[1] |
Total equity | €2.135 billion (2022)[1] |
Number of employees | 17,500 (2022 average)[1] |
Website | www |
Wärtsilä Oyj Abp (Finnish:
Wärtsilä has two main businesses; Energy Business focusing on the energy market, and Marine Business focusing on the marine market. The Marine Business is mainly present in Europe, China and East Asia, while its key Energy Business markets are South and South East Asia, the Middle East, Africa and Latin America. Wärtsilä has locations in around 80 countries, including the US, Brazil, Finland, Germany, South Africa, Singapore and China, but operates globally.[6]
The company has signalled its intention to transform from an equipment maker to a smart marine and energy company, following acquisitions of companies such as Transas, Greensmith, Guidance Marine, and MSI, and the setting-up of "digital acceleration centres" in Helsinki, Singapore, Central Europe, and North America.
In 2023, Time named Wärtsilä one of the 100 most influential companies in the world.[7]
History
Origins
Wärtsilä was established when the governor of the county of North Karelia approved the construction of a sawmill in the municipality of Tohmajärvi, Grand Duchy of Finland on 12 April 1834. The sawmill was soon taken over by industrialist Nils Ludvig Arppe, who built ironworks in the premises. In 1898 the company was renamed Wärtsilä Ab.
Diesel engines
In 1938 the diesel engine era began when Wärtsilä signed a licence agreement with Friedrich Krupp Germania Werft AG in Germany. The first diesel engine was produced in Turku, Finland in November 1942. During the following decades more focus was put on manufacturing diesel and gas engines with the acquisitions of the Swedish firm NOHAB in 1978, the French Société Alsacienne de Constructions Mécaniques (SACM), and the Dutch Stork-Werkspoor in 1989.
In 1997 Wärtsilä absorbed the diesel motor producing New Sulzer Diesel (NSD), which had been created by Sulzer in 1990.
Hybrid engines
In 2020, Wärtsilä made plans to supply hybrid engine solutions[buzzword] for Finnlines.[8]
Expanding portfolio
Through acquisitions of marine propulsion systems supplier John Crane-Lips in 2002, marine automation company Total Automation in 2006, specialist equipment company Hamworthy in 2012 and L-3 Marine Systems International in 2014, Wärtsilä expanded their portfolio considerably.
Marine market
The company services the merchant, offshore, cruise and ferry, naval, fishing, tugs, yachts and special vessel markets, and the offering includes ship design, main and auxiliary engines, auxiliary power systems, electrical and automation packages, propulsors (such as water jets, thrusters, propellers, and nozzles), seals, bearings, gears, rudders, scrubbers, boilers, and all related services, such as repair, configuration, upgrading, training, maintenance, and environmental services.
Customers comprise both
Wärtsilä was an important Finnish shipbuilder from 1935 until 1989, building
Energy market
Wärtsilä is a provider of
Wärtsilä also provides products and services for grid stability management, utilization of gas flares, pumping applications (such as pump and compression drives), financial services, and project management services for projects concerning power generation.
In May 2017, Wärtsilä signed an agreement to acquire Greensmith Energy Management Systems Inc.[9]
In March 2018, the company announced that it had delivered the world's largest solar hybrid power plant, situated in Burkina Faso.[10]
Wärtsilä provides about 25 percent of Bangladesh's total grid capacity, with the company's total power supply to Bangladesh rising to more than 4200 MW when a 105MW power plant being built by Baraka Shikalbaha Power Ltd goes fully operational in spring 2019.[11]
Wärtsilä's wide energy products and systems footprint includes the US, Germany, the UK, China, Russia, Singapore, Bangladesh, India, Indonesia, Myanmar, Senegal, the Dominican Republic, Australia, Saudi Arabia, Tanzania, Morocco, Argentina, Sierra Leone, Brazil, Finland, Mauritius, Rwanda, Honduras, El Salvador, Kazakhstan, Mexico, Jordan and Oman.
Services market
The wholly owned service network consist of over 4,500 field services professionals in more than 160 locations in over 70 countries globally, with the installed base of over 180 000 MW. The focus lies on optimising operations and life cycle performance of land based power plants and ship installations.[12]
Wärtsilä provides services, spare parts, maintenance, upgrades, and fuel conversions products for medium and low-speed gas and diesel engines and other related systems,
In January 2017, Wärtsilä and Carnival Corporation announced a 12-year performance-based agreement worth 900 million euros.[14]
Acquisitions in the services business include Eniram in 2016, Trident B.V in 2017, and Lock-N-Stich.
On 1 October 2018, Wärtsilä announced that it would reorganize into two business areas, incorporating the Services business into the existing Marine and Energy businesses.[15]
At the end of 2021, Wärtsilä's market share in marine medium-speed main engines was 62% and in auxiliary engines 5%. At the end of 2021 Wärtsilä's market share for gas and liquid fuel power plants was 5%.[16]
Wärtsilä's biggest competitors in the marine market are
Engines
Wärtsilä produces a wide range of four-stroke medium-speed
A joint venture agreement between Wärtsilä and China State Shipbuilding Corporation (CSSC) for the take-over of Wärtsilä's 2-stroke engine business was announced in July 2014 and finalized in January 2015;
Wärtsilä admitted to manipulating fuel consumption tests after an internal audit in 2016, saying that a few hundred engines had been affected.[19][20] The company claimed that the customer impact of this manipulation had been marginal.
Sustainability
Wärtsilä published its first environmental report in 2001,[21] and first sustainability report in 2003.[22]
The company signed the United Nations Global Compact initiative in 2009.[23] Common rules and guidance for all employees on Wärtsilä's approach to responsible business practices are defined in the company's code of conduct.[24] Supplier requirements on sustainability, traceability, and business continuity planning are set out in the company's supplier handbook.[25]
Wärtsilä is included in several sustainability indices including the Dow Jones Sustainability Indices, FTSE4Good Index, Ethibel Sustainability Index (ESI) Excellence Europe, ECPI Indices, MSCI Global Sustainability Index Series, STOXX Global ESG Leaders index, and RobecoSAM Sustainability Yearbook.[26]
Key figures
Key figures of 2022:[27]
- Order intake – EUR 6074 million (5735)
- Order book – EUR 5906 million (5859)
- Net sales – EUR 5842 million (4778)
- Operating result – EUR -26 million (314), -0.4% of net sales (6.6%)
- Earnings per share – EUR -0.11 (0.33)
- Cash flow from operating activities EUR -62 million (731)
All numbers are shown excluding non-recurring items and selling profits.
See also
References
- ^ a b c d e f "Financial information". Wärtsilä. Retrieved 6 May 2020.
- ^ "Power Generation Solutions". wartsila.com. Retrieved 26 September 2018.
- ^ "Areas of Expertise - Your shorter route to bigger profits". wartsila.com. Retrieved 26 September 2018.
- ^ "Areas of Expertise - Wärtsilä Services". wartsila.com. Archived from the original on 26 September 2018. Retrieved 26 September 2018.
- ^ "Wärtsilä Corporation's Annual Report 2022" (PDF). 14 February 2023.
- ^ "Wärtsilä Corporation's Annual Report 2022" (PDF). 14 February 2023.
- ^ Worland, Justin (21 June 2023). "2023 TIME100 Most Influential Companies: Wärtsilä - Storing power". Time. Retrieved 21 June 2023.
- ^ "Wärtsilä to supply hybrid solutions for ultra-green Finnlines RO/RO duo". wartsila.com. 5 February 2020. Retrieved 17 February 2020.
- ^ "Wärtsilä acquires Greensmith Energy Management Systems Inc. to position itself as a global energy systems integrator". wartsila.com. 15 May 2017. Retrieved 27 September 2018.
- ^ "Wärtsilä delivers world's largest solar hybrid power plant, reducing annual CO2 emissions by as much as 18,500 tons". wartsila.com.
- ^ "Wärtsilä signs contract for another 105 MW power plant in Bangladesh". wartsila.com.
- ^ Wartsila Corporate presentation, 2012. Retrieved 12 March 2013.
- ^ Wärtsilä Low NOx Solutions Archived 29 September 2015 at the Wayback Machine Wärtsilä, 2008
- ^ "Wärtsilä and Carnival Corporation announce strategic performance-based partnership". wartsila.com. 25 January 2017.
- ^ "Wärtsilä redesigns organisation to enhance customer value". steelguru.com. Archived from the original on 26 July 2019. Retrieved 26 July 2019.
- ^ "Market shares". wartsila.com.
- ^ most efficient 4-stroke diesel engine, wartsila.com
- ^ take-over of Wärtsilä's 2-stroke engine business, wartsila.com
- ^ "Finsk koncern erkänner fusk med båtmotorer".
- ^ "Update 1-Finland's Wartsila admits manipulation of ship engine fuel tests". Reuters. 7 March 2017. Retrieved 26 October 2016.
- ^ Our Sustainability Reports. Retrieved 27 August 2019.
- ^ Nordic companies winners of the EERA awards. Retrieved 14 May 2016.
- ^ Wartsila Corporation | UN Global Compact. Retrieved 27 August 2019.
- ^ Code of Conduct. Retrieved 27 August 2019.
- ^ Supplier Handbook. Retrieved 27 August 2019.
- ^ Why invest in Wärtsilä. Retrieved 3 April 2019.
- ^ "Financial Statement bulletin January-December 2022". Wärtsilä Corporation. Wärtsilä. Retrieved 25 July 2023.
External links
Media related to Wärtsilä at Wikimedia Commons