Wärtsilä sells Russian JV stake. Focuses on marine and energy power solutions
- Business & Finance
Finland’s Wärtsilä and Russia’s Transmashholding have agreed that Wärtsilä will sell its 50 per cent share in the joint venture Wärtsilä TMH Diesel Engine Company LLC to Transmashholding, the other joint venture party.
The divestment of the joint venture will enable Wärtsilä to concentrate on its core areas of expertise, namely complete lifecycle power solutions for the marine and energy markets. The transaction has received the relevant regulatory approvals, and it is expected to be closed by the end of June 2014. The value of the agreement is approximately EUR 12 million.
Wärtsilä and Transmashholding signed a joint venture agreement in May 2010 to manufacture modern and multipurpose diesel engines in Russia. The engines were to be used in shunter locomotives and in various marine and power applications.
According to the agreement, Wärtsilä and TMH would set up a 50/50 holding company to establish and operate a new engine factory in Penza, Russia for assembling and testing engines, and for the production of certain larger engine components. Construction of the new engine production facilities began in 2012.
Wärtsilä continues to see growth opportunities in Russia in the marine and power plant markets. Following the transaction Wärtsilä will serve the region through its existing manufacturing locations.