Wartsila Nabs New Ship Design Company in Singapore

Wartsila has agreed to acquire a leading naval architecture and ship design company Conan Wu & Associates Pte Ltd (CWA), headquartered in Singapore. The deal also includes partnership agreements regarding CWA's business in Malaysia, China and Hong Kong.

The price of the deal is EUR 23 million, to be paid in cash, and an additional amount to be paid based on the performance of the business in years 2008-2010.

In 2007, the turnover generated by CWA's businesses was EUR 10.7 millions and the profitability was on a very good level. CWA has 66 employees in Singapore.

"This deal is a clear demonstration of Wartsila’s commitment to becoming the leading provider of ship design services in the areas, which we specialize in, including offshore and special vessels as well as selected merchant vessels. CWA has a strong market position and the company’s outstanding know-how is a welcome addition to Wartsila's offering. By incorporating CWA into our existing ship design business, we expect to further strengthen the competitiveness of CWA's offering to its customers, and thus CWA's business prospects," said Jaakko Eskola, Group Vice President, Wartsila Ship Power.

The acquisition of CWA is a further major step in Wartsila's strategy of strengthening its position as a total solutions provider, and of being the most valued partner for its customers. Expansion within ship design is an important move for Wartsila, as it brings the company closer to its maritime industry customers. Wartsila intends to offer the best and most efficient total solutions, regardless of equipment used.

The total marine solutions provided by Wärtsilä are uniquely competitive in their ability to integrate and optimize the various operating processes of the entire vessel. This new and innovative way of combining ship design know-how with equipment solutions and services will lead to significant customer benefits, e.g. in terms of improved efficiency and reduced emissions.

"The acquisition of CWA expands the geographical scope of Wartsila's ship design services. It also excellently complements and broadens Wartsila's ship design competence to cover a larger range of vessel types, including smaller, less complicated and more standardized vessels," said Arne Birkeland, Vice President, Wartsila Ship Design.

"Being a part of Wartsila will allow CWA to realize its huge potential, both in Asia as well as in other markets. This deal is a great opportunity to further develop our know-how and our business on a global scale," said Dato Conan Wu, Chairman, CWA Pte Ltd.

CWA will be integrated into Wartsila Ship Design within the Company's Ship Power business. All personnel in Singapore -- including the former owners Dato Conan Wu and Mok Kim Terng as well as the rest of the management of CWA -- will continue in Wartsila's service.