Wärtsilä's position as a provider of ship power systems was recently strengthened when it purchased the leading international power and propulsion system supplier John Crane-Lips. The purchase price was EUR 350 million. Wärtsilä is the market leader with its full range of marine engines and John Crane-Lips is the world's leading supplier of propulsion products. Wärtsilä also reinforced its service function by purchasing the Swedish Ciserv.

Years of focus on marine engines and on comprehensive power plant solutions of varying size have yielded Wärtsilä a clear lead on its key competitors. Customers require integrated solutions, such as entire ship engine rooms or power plants on a turnkey basis.

Engine rooms vs. marine engines

The engines of large ships are often delivered as ship-specific custom packages that also include maintenance services. Wärtsilä's biggest competitive advantage lies in the fact that it equips ships with entire engine rooms rather than simply delivering marine engines to a shipyard. Ship owners and shipyards can purchase engineering, production, installation and maintenance services from Wärtsilä for the entire life cycle of a ship's power system.

The current John Crane-Lips transaction further improves Wärtsilä's ability to deliver integrated solutions to its customers. This new company is the only one in the world that can offer comprehensive packages.

Growth from biomass plants

In its second main business, decentralized power plant solutions, Wärtsilä received its largest ever order of EUR 130 million from Guatemala in January. This power plant, sold to the U.S. energy giant Duke Energy International, will be delivered on a turnkey basis. The deciding factor in this deal was Wärtsilä's technology that allows the production of electricity using an inexpensive asphalt-water emulsion fuel in addition to heavy fuels. In addition to the technology involved, Wärtsilä will also supply construction and installation services in Guatemala.

The Group's position as a supplier of decentralized power plant solutions was further reinforced through the acquisition of Sermet Ltd, a supplier of biomass boilers. Biomass boilers constitute a new conquest for the company. Wärtsilä expects robust growth in the biomass-based power sector as the use of renewable fuels increases worldwide. The total output of biomass-based power plants currently under construction in Europe is 1,000 MW.

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 John Crane-Lips' propulsion system selection will reinforce Wärtsilä's position as the world's leading supplier of power systems for ships