Energy, Oil & Gas

Wärtsilä to expand Finnish production capacity by 35pc

Wärtsilä to expand Finnish production capacity by 35pc

Technology group Wärtsilä will invest approximately EUR 140 million ($165,4 million) to further expand its production capacity by 35 per cent at its technology centre, Sustainable Technology Hub (STH) in Vaasa, Finland and associated global supply chain.

This expansion will increase Wärtsilä’s industrial capacity and strengthen the capacity of the associated global supply chain, positioning Wärtsilä to meet growing market demand in energy and marine.

The expanded capacity will enable Wärtsilä to deliver a higher volume of engines, and better support both customer needs and continued business growth long-term.

The new production capacity will be installed within the STH facility expansion announced in April 2025 and is expected to be commissioned in the first quarter of 2028.

“Global demand for reliable power is rising sharply as industries electrify, climate warming is driving needs for cooling, and data centres scale at unprecedented speed. In regions like North America and Europe, there are needs to renew ageing power generation infrastructure, while the increasing share of renewables in the global energy mix accelerates the demand for thermal balancing power to secure power system stability. Wärtsilä’s flexible and energy efficient engine technologies are increasingly the trusted choice for customers when addressing evolving power requirements. In parallel, shipowners are prioritising fuel flexibility and fuel efficiency to secure long-term competitiveness and compliance with evolving marine regulation. By expanding production capacity at the Sustainable Technology Hub and the associated global supply chain, we are strengthening our operational readiness for further growth. Additionally, we are reinforcing Wärtsilä’s role as a long-term partner for customers in both energy and marine, supporting the evolving needs and advancing the decarbonisation of these industries,” says Wärtsilä President and CEO Håkan Agnevall.

Key facts about the Wärtsilä Sustainable Technology Hub (STH):

  • Opened in 2022, the Sustainable Technology Hub currently encompasses 90,000 square meters and employs more than 2,000 professionals.
  • STH serves as a centre for collaboration, innovation and partnership, bringing together Wärtsilä experts, customers, technology partners, and academic institutions. Each month, it welcomes around 1,000 visitors, including customers, partners, and influential decision-makers.
  • All engine types in Wärtsilä’s portfolio are manufactured at STH, which also houses a dedicated training centre and one of Wärtsilä’s remote monitoring centres, serving customers worldwide.
  • Since announcing the plan to establish the Sustainable Technology Hub in 2018, Wärtsilä has invested over 400 million euros into STH. Wärtsilä is currently expanding the Sustainable Technology Hub with an additional office building, co-locating all 3,800 Vaasa-based employees at the site in the first half of 2026. In April 2025, Wärtsilä announced a EUR 50 million investment to expand the R&D testing capabilities and facilities at STH. The over 11,000 square meter extension, expected to be commissioned in early 2028, will include the new production capacity.
  • The centre is a cornerstone of Wärtsilä's ambition to achieve carbon neutrality in its operations by 2030. Designed for energy self-sufficiency, the building generates its own electricity and heat. Excess power is returned to the grid, while the heat from engine tests and other processes is stored in a thermal energy storage tank to efficiently heat the facility. -TradeArabia News Service

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