Wärtsilä sells its share in the Wärtsilä TMH Diesel Engine Company LLC joint venture to Transmashholding
ET | Source:Wärtsilä
Wärtsilä Corporation, Company announcement, 3 June 2014 at 4 pm EET
Wärtsilä sells its share in the Wärtsilä TMH Diesel Engine Company LLC joint
venture to Transmashholding
Wärtsilä and Transmashholding have agreed that Wärtsilä will sell its 50 per
cent share in the joint venture Wärtsilä TMH Diesel Engine Company LLC to
Transmashholding, the other joint venture party. The divestment of the joint
venture will enable Wärtsilä to concentrate on its core areas of expertise,
namely complete lifecycle power solutions for the marine and energy markets. The
transaction has received the relevant regulatory approvals, and it is expected
to be closed by the end of June 2014. The value of the agreement is
approximately EUR 12 million.
Wärtsilä and Transmashholding signed a joint venture agreement in May 2010 to
manufacture modern and multipurpose diesel engines in Russia. The engines were
to be used in shunter locomotives and in various marine and power applications.
According to the agreement, Wärtsilä and TMH would set up a 50/50 holding
company to establish and operate a new engine factory in Penza, Russia for
assembling and testing engines, and for the production of certain larger engine
components. Construction of the new engine production facilities began in 2012.
Wärtsilä continues to see growth opportunities in Russia in the marine and power
plant markets. Following the transaction Wärtsilä will serve the region through
its existing manufacturing locations.
For further information please contact:
Executive Vice President, Communications & Branding
Tel. +358 10 709 5599
Vice President, Product Company Joint Ventures
Tel. + 358 10 709 5555
For investor information, please contact:
Director, Investor Relations
Tel: +358 40 187 7809
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.
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