Wartsilä Moves to Italy Resulting in 450 Face Layoffs

Wärtsilä announced its plans to cut down manufacturing in Italy while it centralizes its European 4-stroke engine building business to Finland. Wärtsilä said the closing will result in 450 layoffs and an annual savings of 35 million euros by 2025. Wärtsilä and employee representatives discussions, along with Italian authorities and institutions, will start in line with law in Italy.

“It is a part of our strategy to continuously monitor our manufacturing capacity and footprint to ensure that our operational efficiency remains competitive,” says President and CEO of Wärtsilä Håkan Agnevall.

“Over the years we have continuously consolidated our manufacturing footprint in Europe. With our new European manufacturing footprint, we are taking the next step in strengthening our competitiveness and creating a structure enabled for future growth. Italy and Trieste will continue to be very important for Wärtsilä in many areas as we aim to be part of shaping the decarbonisation of marine and energy industries.”

Wärtsilä became a shareholder in Grandi Motori Trieste in 1997 and it took ownership two years later. Its current production line includes Wärtsilä’s four-stroke engine series, including the Wärtsilä 26, Wärtsilä 38, Wärtsilä 46, 46F, 46 DF, Wärtsilä 50DF and Wärtsilä 50SG, and propulsion components.

“Under the challenging circumstances of the past years, our employees in Trieste have done a commendable job. However, we need to centralize our manufacturing footprint in Europe to further improve our competitiveness,” said President of Wärtsilä’s Marine Power business Roger Holm.

“I would like to underline that Italy and Trieste will remain very important for Wärtsilä. Going forward our site in Trieste will focus on R&D, sales, project management, sourcing, service and training activities. A main part of our employees in Trieste are engaged in these activities today. In the development of the future sustainable solutions for marine and energy industries we are investigating possibilities for future investments in Trieste related to the development of technology for sustainable fuels.”

Wärtsilä reassured the move will not impact business activities.