Wärtsilä enters into License Agreement with Brazilian Company Nuclebras Equipamentos Pesados SA

Wärtsilä Corporation, Trade press release 11 January 2006 at 14:01 UTC+2

Wärtsilä has signed a License Agreement (called “Technical and Industrial Co-operation Agreement”) with Nuclebrás Equipamentos Pesados S.A. – NUCLEP, located in Itaguai, State of Rio de Janeiro, Brazil.

This agreement with Nuclep will create new opportunities for Wärtsilä in the growing Brazilian marine market, therefore we are looking forward to the cooperation with Nuclep, says Mr Ole Johansson, President and CEO of Wärtsilä Corporation.

This agreement represents an important milestone for Brazil due to the fact that marine engines have not been manufactured in Brazil since 1996, says Mr Jaime Wallwitz Cardoso, President of Nuclep.

The agreement grants Nuclep the right to manufacture certain types of Wärtsilä’s most modern electronically controlled common rail two-stroke marine diesel engines between 50 and 68 cm bore size at their premises in Itaguai with a targeted annual output of six to ten engines. The first delivery of a Wärtsilä engine is scheduled for beginning of 2008.

The Brazilian Government is investing in the rehabilitation of the national ship building industry. In 2005 Petrobras launched a bid for twenty-six new vessels for its subsidiary Transpetro as part of the “Program of Expansion and Modernisation of the Brazilian Shipping”. The Brazilian Government and the Brazilian shipyards are discussing in addition the possibility of constructing vessels for international customers. This increased demand of the Brazilian shipbuilding industry for two-stroke engines has led to this agreement, enabling Nuclep to supply locally produced two-stroke engines of highest technical standard to the Brazilian shipyards for the upcoming shipbuilding projects. Nuclep will acquire technical assistance and training of personnel as well as marketing and production support from Wärtsilä.

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 decentralised power generation.

Wärtsilä supplies ship machinery, propulsion and manoeuvring solutions, and related services for all types of vessels. For the power generation market Wärtsilä delivers power plant solutions from 1 to 300 MW. 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.

Wärtsilä’s subsidiary in Brazil was established 15 years ago to support the increasing number of merchant vessels and offshore customers calling ports on the Brazilian coast as well as the local ship building activities. Additionally, during the later years the increased number of power plant installations supplied by Wärtsilä has further contributed to the importance of Wärtsilä Brasil Ltda. Currently, Wärtsilä in Brazil employs more than 200 persons in Rio de Janeiro and Manaus.

Wärtsilä’s subsidiary in Winterthur, Switzerland is responsible for Wärtsilä’s low speed engine technology. The company has a know-how-centre for research, development, design, licensing, marketing and after-sales support of Wärtsilä’s low-speed diesel engines within the Wärtsilä group.

About Nuclep

Nuclep is a Brazilian federal government owned company, linked to the Ministry of Science and Technology, and mainly active in manufacturing of heavy engineering equipment for nuclear industry, power generation and marine as well as offshore installations.

Nuclep’s facilities are fitted to the manufacturing and handling of heavy components with high accuracy. Nuclep employs currently more than 550 employees.

Nuclep started its industrial activities 25 years ago and has a history of pioneering achievements which contributed decisively to the development and improvement of the Brazilian Industries.

For further information please contact:

Mr Clas-Eirik Strand President, Wärtsilä Switzerland Ltd Tel: +41 52 262 2666 e-mail: clas-eirik.strand@wartsila.com

Mr Jaime Wallwitz Cardoso President, Nuclebrás Equipamentos Pesados S.A. – NUCLEP Tel: +55 21 2532 4240 e-mail: jaime.cardoso@nuclep.gov.br

Mr Alexandre Porto Gadelha Commercial Director, Nuclebrás Equipamentos Pesados S.A. – NUCLEP Tel: +55 21 2688 3313 e-mail: agadelha@nuclep.gov.br

Media contact:
Marit Holmlund-Sund
Public Relations Manager
Wärtsilä Corporation
Direct tel: +358 10 709 1439
Direct fax: +358 10 709 1425
e-mail: marit.holmlund-sund@wartsila.com
Internet: www.wartsila.com