Strategic alliance between Wärtsilä Corporation and Mitsubishi Heavy Industries in two-stroke engines

Wärtsilä Corporation, Stock exchange release 28 September 2005 at 09:00 UTC+2

Wärtsilä Corporation and Mitsubishi Heavy Industries Ltd (MHI) have signed an agreement for a strategic alliance in the field of two-stroke diesel engines.

The two companies will share their resources and experience for improved business. Various possibilities will be explored in research and development as well as in the efficiency of production and distribution of jointly developed two-stroke diesel engines.

The strategic alliance will be led by a Steering Committee. The Chairman of the Steering committee is a representative of Wärtsilä and the Vice Chairman is a representative of MHI.

Wärtsilä and MHI both have wide portfolios of low-speed, two-stroke diesel engines. Wärtsilä’s RTA and RT-flex engines cover the power range of 5000 to 80,000 kW and MHI’s UE engines the range of 1,120 to 46,800 kW. In addition to MHI’s own developed UE engines, MHI has over the years been extensively involved in the building and testing of the two-stroke engines designed by Wärtsilä.

This agreement is the continuation of the successful joint development of new 50 cm bore two-stroke engines started in 2004.

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 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.

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd (MHI), headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers, with consolidated sales of 2,590 billion yen (approx. EUR 19.2 billion) in fiscal year 2004 (year ended March 31, 2005). MHI´s diverse line-up of products and services encompasses shipbuilding, steel, structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems, and it has 33,500 employees.

For the marine machineries, MHI supplies a wide-range of products, including diesel engines, turbines, boilers, propellers, deck machinery, water jet pumps etc. It supplies high-, medium- and low-speed diesel engines and provides related services for various types of vessels.

For further information, please contact:

Wärtsilä Corporation
Mr Clas-Eirik Strand, President, Wärtsilä Switzerland Ltd, tel. +41 52 262 2266
Ms Eeva Kainulainen, Vice President, Corporate Communications, Wärtsilä Corporation, tel. +358 10 709 52 35

Mitsubishi Heavy Industries, Ltd.
Mr Hideo Ikuno, Public Relations, Mitsubishi Heavy Industries, Ltd., tel. +81 3 6716 5277.
Mr Hiroo Uchimura, General Manager, Industrial Energy Power Systems, Mitsubishi Heavy Industries, Ltd., tel. +81 3 6716 3350.