Wärtsilä acquires reconditioning business from Metalock in Singapore

Wartsila Corporation, Stock exchange release, 15 January 2002 at 02:01 UTC+2

Wärtsilä Corporation STOCK EXCHANGE RELEASE 15 Jan. 02 at 11.00 am

Wärtsilä will acquire the engine reconditioning business from Metalock (Singapore) Ltd. The acquisition will consist of the marine engine repair and recondition business and the workshop. Wärtsilä will pay a consideration of EUR 5.4 million for the acquisition. The sales volume of the acquired business is EUR 8.8 million and number of employees is 87.

"This acquisition will further strengthen Wärtsilä as a total service provider. We have an opportunity to increase our market share especially in the low speed engines", says Tage Blomberg, Group Vice President and Head of the Service division.

The focus of the acquired business is on marine engine reconditioning, with the special know how in low speed engines. The workshop is located in Singapore. "We will now have a possibility to provide also recondition service for our customers in South East Asia region, the service which we earlier didn´t have in-house", says Jukka Murtoaro, Managing Director of Wärtsilä Singapore.

The acquired business will be named Ciserv and it will concentrate on recondition business. Wärtsilä Singapore provides other services for the marine and power plant customers.

The closing of the deal will take place in the first part of the current year 2002. The transaction is subject to the approval of the shareholders of Metalock and various regulatory authorities.

The Metalock Group is primarily involved in marine engineering, oilfield equipment repairs and remotely operated subsea vehicles. Metalock is listed on the Singapore Exchange Limited.

Wärtsilä Corporation is the leading global ship power supplier and a major provider of solutions for decentralized power generation and of supporting services. In addition Wärtsilä operates a Nordic engineering steel company Imatra Steel and manages a substantial holding to support the development of its core business.

Further information, please call:
Mr Tage Blomberg, Group Vice President, Service, Wärtsilä Corporation, tel. +358 10 709 2425

Mr Jukka Murtoaro, Managing Director, Wärtsilä Singapore Pte Ltd, tel. +65 267 4300

Mr K.K.Kuah, Executive Chairman, Metalock (Singapore) Limited, tel. +65 777 7651.