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Flexible manufacturing close to the customer

Wärtsilä's manufacturing focuses mainly on assembling, test running and finishing of products. Flexibility in capacity is guaranteed through an outsourced business model using a broad network of suppliers. Flexibility and being close to the customer is important.

The flexibility of our manufacturing is supported by our broad network of suppliers

Through good co-operation, excellent relations, and the sharing of information with our suppliers, the supply of components and short lead times are secured. Wärtsilä has around 200 main suppliers globally, and our network is continuously being further developed. Our sourcing strategy is to focus on carefully selected high performing suppliers, meaning that the supply base is optimised, with an emphasis on performance and a presence close to our manufacturing units.

Manufacturing footprint

Manufacturing of our medium-speed main engines is concentrated at the delivery centres in Vaasa, Finland and Trieste, Italy. Low-speed main engines are very large and therefore difficult to transport, which is why they are built under license close to shipyards in various parts of the world. Today we have 17 low-speed engine licensees located in Asia, Europe and South America. Our auxiliary engines are manufactured in Shanghai, China. The manufacturing of our propulsion components currently takes place mainly in China, Norway, the UK, Italy, India and Japan. Automation equipment is manufactured in Norway, while our Ecotech-Centre for environmental solutions is situated in Finland. As structural changes continue in our end markets, we will continue to expand our presence in our key markets, especially in the BRIC countries. This enables better exploration of emerging markets, and allows savings to be achieved in both labour and transportation costs.

Wärtsilä Industrial Operations

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Main changes in the footprint during 2010

During 2010, Wärtsilä started to adapt its manufacturing capacity both to the structural changes in the market, and to a lower demand environment. Production activities in Drunen and Zwolle in the Netherlands are in the process of being closed, and the manufacturing of controllable pitch propellers in China is in the ramp up phase. During 2010, production of generating sets was transferred from Vaasa, Finland to China. New and more efficient ways to operate were introduced, thus enabling the closure of other smaller units and the consolidation of operations to larger entities in various countries.

Wärtsilä Industrial Operations designs and manufactures engines, generating sets, electrical & automation equipment, integrated environmental & efficiency products and systems, propellers, gears, as well as seals and bearings as integrated deliveries.

To read about our products and R&D please refer to the section Towards more sustainable solutions.