Wärtsilä's strategic aim is to strengthen its leading position in its markets and to ensure continued growth by offering customers reliability and the best lifecycle efficiency available. This is made possible by an integrated equipment and solutions portfolio combined with a broad service offering that matches customers' needs worldwide. The foundation of Wärtsilä's competitive edge lies in its continuous focus on innovation and R&D and its aim is to be the technology leader in its industries. Wärtsilä's ability to focus on long-term business drivers, its strong financial base, and agility in adapting to changing market conditions puts the company in a strong position to pursue its strategy.
Strategic acquisitions, joint ventures and expansion of the network in 2010
In May, Wärtsilä signed a joint venture agreement with the Russian company Transmashholding (TMH) to manufacture modern multipurpose diesel engines in Russia. The engines, including a new and technically advanced version of the Wärtsilä 20-engine, will be used in shunter locomotives and for various marine and power applications. The two companies will jointly engineer the railway application. Wärtsilä and TMH will also evaluate broadening the activities of the joint venture to include the development and manufacturing of other diesel engine models in the future. The value of Wärtsilä's investment in the joint venture is approximately EUR 30 million and production of the engines is planned to start in 2012.
During the year, Wärtsilä continued to expand its service network with the inauguration of a new office and workshop facility in Panama.
Long-term financial targets
Wärtsilä has redefined its long-term financial targets. Our target is to grow faster than global GDP. Our operating profit margin (EBIT%) target is 14% at the peak of the cycle. Even at the trough of the cycle, our target is to keep the operating profit margin above 10%. Our target is to maintain gearing below 50%. Our target is to pay a dividend equivalent to 50% of earnings.