Finnish ship turbine maker Wartsila to lay off 1,400 people worldwide

Ship engine maker Wartsila lays off 1,400 globally

HELSINKI — Wartsila Corp., a leading maker of ship turbines, said Tuesday it will lay off 1,400 workers worldwide and cut production to save costs and increase competitiveness.

The Finnish company plans to close its propellor and components manufacturing units in Netherlands, slashing 570 jobs. It employs more than 1,500 people in that country.

Wartsila stock surged 12.8 percent to close at €33.83 ($48.31) on the Helsinki Stock Exchange.

The company said it will move its generating units production in Vaasa, western Finland, to China to remain competitive in Asian markets.

“The world has dramatically changed in a short period of time. China has become a strong maritime center and its growth will continue,” CEO Ole Johansson said. “We have a choice — either to stay in Vaasa and twiddle our thumbs or go nearer to the customer.”

Wartsila said the restructuring plans will save it some €90 million during the next two years.

The Helsinki-based group’s net sales grew 14 percent in 2009 compared to 2008, Wartsila said in a preliminary financial review. It said net sales will likely fall by 10-20 percent this year from 2009 levels and that profitability will fall by 10 percent.

The company is scheduled to publish its 2009 earnings report on Jan. 28.

Wartsila, a leading supplier for builders and operators of vessels and offshore installations, also builds power plants and provides power generation services.

Last year, it cut more than 600 jobs globally. Currently, Wartsila employs 18,500 people in 70 countries.

On the Net:

www.wartsila.com