Wärtsilä and Konepaja Häkkinen agree on long-term co-operation

Wärtsilä Corporation, Press release 5 October 2005 at 10:00 UTC+2

Wärtsilä and Konepaja Häkkinen Oy have today signed a long-term supply agreement covering manufacturing of large engine blocks for Wärtsilä.

Häkkinen Engineering Works will concentrate its engine block manufacturing in Turku and has acquired the factory hall that was previously part of the Wärtsilä Turku Factory. Häkkinen will also invest in an ultra-modern large portal machining centre which is scheduled to be taken into operation in December 2006.

On completion of the investment, the machined and sub- assembled engine blocks for the Wärtsilä engine families will be delivered as ready-to-install modules direct to the main assembly lines at Wärtsilä’s Vaasa and Trieste factories.

The co-operation agreement will strengthen the mechanical engineering sector in Turku and ensure that the region retains its special expertise in the heavy metal industry. The agreement also has the potential to create new jobs.

Konepaja Häkkinen has operated under a rental agreement in the Turku factory’s premises since engine manufacturing at the Turku Factory was discontinued at the turn of 2004.

About Konepaja Häkkinen Oy
Konepaja Häkkinen Oy, based in Raisio, Finland,was established in 1980. The Group employs roughly 300 persons in Finlandand its subsidiaries are Tikkakosken Konepaja Oy in Tikkakoski, and Rautpohjan Konepaja Oy in Jyväskylä.

The Konepaja Häkkinen Group operates as a contract manufacturer for the heavy machining industry. Acquiring the factory property in Turku will enable the company to expand rapidly in a growing market and the group’s manufacturing capacity will also be boosted by the new machine investment. The need for additional employees will be in the order of over 20 man-years and the company will be recruiting new skilled machinists. Close and flexible co-operation with Wärtsilä will continue and develop further in line with customer requirements.

The expansion brings new product potential and improves the company's competitiveness in the market. The group is particularly known as a manufacturer of large and demanding rotation, casing and beam-type components in the Nordic countries. Its main customers operate in machine manufacturing, the heavy electrical industry, and the power transmission and wind-power industry in the European Union.

About Wärtsilä
Wärtsilä is The Ship Power Supplier for builders, owners and operators of vessels and offshore installations. Wärtsilä’s own global service network takes complete care of customers’ ship machinery at every lifecycle stage. Wärtsilä is also a leading provider of power plants, operation and lifetime care services in decentralized power generation. Wärtsilä has a global sales and service network in about 60 countries. Wärtsilä’s net sales totalled EUR 2.4 billion in 2004 and it has 11,500 employees.

Further information:  Mr Erik Pettersson, Vice President, Wärtsilä Engine Division, tel. +358 (0) 400 667 173. Mr Mika Penttinen, President, Konepaja Häkkinen Oy, tel. +358 (0) 40 756 2856