Russian exit
Finnish marine engine builder Wartsila is selling its 50% stake in Wartsila TMH Diesel Engine Company for about EUR 12m ($16.4m) to joint venture partner Transmashholding.
Wartsila says the divestment will allow it to concentrate on its core areas of expertise in power solutions for the marine and energy markets.
Transmashholding and Wartsila signed the joint venture agreement to manufacture multipurpose diesel engines in May 2010, setting up a 50/50 holding company to build and operate a new factory in Penza, Russia.
Construction of the production facilities began in 2012, with the engines designed for use in shunter locomotives and various marine and power applications.
Wartsila says it continues to see growth opportunities in Russia’s marine and power plant markets, and will continue to serve the region through its existing manufacturing locations.
The sale to Transmashholding is expected to be closed by the end of June 2014.