Feature 2 | FINLAND’S MARINE INDUSTRIES Wärtsilä aims to side-step crunch
Wärtsilä adapts its business model to the changing demands it perceives from its customers.
clear that the process is far from over. Wärtsilä continues to broaden its offering, having taken over three ship design companies in the last two years, in the shape of Germany’s Schifo, Norway’s Vik-Sandvik and Singapore’s Conan Wu. But the Finnish company’s broader
T
strokes should not obscure the fact that, at the detailed level, its integrated approach also offers opportunities for greater reach. At the company’s capital market day in late November 2008, Jaakko Eskola, group vice president, Ship Power, noted that there were several areas within automation where the company had opportunities to broaden its scope of products. Bridge automation systems will likely be future area for the company, in addition to further investments in ship design and services. Te prospect of a shipbuilding downturn is
now looming large, Ole Johansson, president of Wärtsilä Corp said that the company estimated that 10% of its of current total orderbook could be at risk - all related to Ship Power. “Year 2009 is probably clear but when going into 2010 this is an issue,” he said. He also noted that all the company’s manufacturing units are currently running at full capacity, as are its suppliers’ - “a somewhat schizophrenic situation when looking at the current situation in the world,” he said. Te cautionary tone validates a separate
company strategy that should be beneficial in the result of any impending downturn. Increasingly, Wärtsilä’s has pursued service business over recent years. For the first nine months of 2008, service provided 43% of the group’s entire net sales, and this is expected to rise to 50% for 2008 as a whole. Te Service sector is to be built up further, step by step, with acquisitions of service companies, according to Mr Johansson.
Green opportunities Wärtsilä sees tightening requirements on emissions as an opportunity, with a resulting
64
Deepwater Engineering Survey Vessel design for China Oilfield Services Limited (COSL). Length 105m.
he last decade has seen engine suppliers evolving into ‘propulsion chain solution providers’, but it is
A 123m multipurpose support vessel for China’s state-owned Shanghai Salvage Company. The key requirement is for multi-purpose flexibility since the vessel will be required to carry out a multitude of different operations, including salvage, offshore engineering services, diving and ROV operations, fire-fighting, anchor handling, ship supply, environmental protection, and route clearing.
demand for higher technology products with added performance requirements. In addition to new regulations for SOx and NOx, clients are also asking for reduced CO2
emissions. reduce CO2
“Any serious shipowner wants to , if not for other reasons at
least for reducing fuel consumption,” Mr Johansson pointed out, noting the strong correlation between CO2
emissions and fuel
consumption in denoting the efficiency of a vessel. “We have decided to bundle this sector
into one single division, Delivery Centre Ecotech, which began operations at the beginning of 2009,” said Mr Johansson. “The unit will focus on developing and delivering environmental technologies, as
Investments in Ship Design Within ship design, Wärtsilä is now among the top three, in offshore service, tug and boats, special vessels and targeted sub-segments within merchant vessels, Eskola noted. “In the future we will be the number one in certain ship types; in environmental ships, in efficient ships, and in extreme ships, an example being a research vessel for Arctic areas. We provide design services for non-commodity vessel categories, not bulkers and tankers,” he said. Wärtsilä’s sales strategy allows the owner the
The Naval Architect February 2009
well as on products for emissions reduction and efficiency improvement (see Te Naval Architect January 2009, p36).
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