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Manufacturing and Research & Development

Manufacturing

The year 2010 was characterised by restructuring and reorganisation of Wärtsilä's manufacturing footprint and measures continued throughout the year.

The set up for manufacturing controllable pitch (CP) propellers at the joint venture, Wärtsilä CME Zhenjiang Propeller Co. Ltd. in Zhenjiang, China, is proceeding according to plan. The majority of the equipment needed will be relocated from the Wärtsilä factory in Drunen, The inauguration of the new factory and the first deliveries are planned for the second quarter of 2011.

The activities in Wärtsilä's joint venture with Transmashholding in Russia relating to the manufacturing of modern and multipurpose diesel engines, including a new and technically advanced version of the Wärtsilä 20 engine which will be used in shunter locomotives and for various marine and power applications, is proceeding according to plan. The first test locomotive was started at the end of the year.

Megawatts delivered      
  2010 2009 Change, %
Power Plants engines 3 442 2 886 19,3
Ship Power, own engines 2 057 3 293 -37,5
Wärtsilä total 5 498 6 179 -11,0
By licensees 3 193 3 311 -3,6
Engine delivery total 8 691 9 490 -8,4

Research and development

The foundation of Wärtsilä's competitive edge lies in its continuous focus on innovation and R&D and in its aim is to be the technology leader in its industries. This is done by offering a streamlined portfolio of products and by integrating products into larger solutions Environmental solutions are an integrated part of Wärtsilä's product portfolio. Wärtsilä's R&D activities focus on products and solutions that are fuel-efficient, reliable and safe, cost-efficient to operate, and that produce minimal environmental impacts throughout their lifecycles. Wärtsilä is in the process of renewing its 4-stroke and 2-stroke engine portfolio to meet the needs brought by the tightened environmental legislation.

In 2010, Wärtsilä's research and development expenses totalled EUR 141 million (141), or 3.1% of net sales.