Finland's Wartsila sells Russian business to local management, exits country
ST. PETERSBURG. July 21 (Interfax) - Wartsila, the Finnish manufacturer of marine power equipment, has completed the process of leaving Russia, and has closed its office in St. Petersburg, the company's press service reported.
"All adjustments and closures of Wartsila's operations have been taken in accordance with local regulations. Throughout the various processes, Wartsila's priority has been to ensure the safety and well-being of its employees," according to the statement.
As noted, the company this past spring signed agreements on selling the Russian business comprising Wartsila Vostok LLC and Transas Navigator to local management.
Transas Navigator will operate as an independent company and continue to serve Russian customers. Wartsila itself will stop providing services and supplying spare parts to the company.
Wartsila Vostok LLC, which maintains and repairs ship equipment, will continue to operate as a legal entity of V-Vostok LLC. Wartsila will also cease providing maintenance services to the company in Russia.
Wartsila has closed its office in St. Petersburg as part of exiting Russia. The company plans to reduce staff in line with local legislation. Wartsila has also established new R&D facilities outside Russia in order to ensure the continuity of its commitments to its customers.
Wartsila in April announced its intention to write off 200 million euros related to assets and business operations in Russia. Previously, the company had suspended deliveries, sales, orders and trading in the country. As noted in the statement, the decision will negatively affect Wartsila's financial performance, as its operations in Russia had comprised up to 5% of annual profit, or 40 million euros.
Wartsila specializes in manufacturing ship power plants, power plants, screw mechanisms, ship control systems and other equipment. The company has more than 200 offices in 68 countries. In 2021, the company generated net sales of 4.8 billion euros.