The Hindu Business Line : Wartsila plans assembling unit in India

Helsinki, Sept. 7 Wartsila Corporation will invest over €5 million to set up an assembling unit in India to make controllable pitch propellers for ships.

Addressing reporters at its headquarters in Helsinki,Mr Ole Johansson, President and CEO, Wartsila Corporation, said that the facility would come up at Wartsila’s manufacturing unit in Khopoli, near Mumbai.

Wartsila makes controllable pitch propellers in Holland and in Norway. The decision to set up a facility in India is a mark of its growing importance for the ship building industry. However, the facility would start first with exports to shipyards globally and would over time, with the growth in the market, also benefit Indian customers.

He told the reporters, who were on press tour organised by Finnfacts, an organisation promoting awareness about Finnish industry and business overseas, and the Embassy of Finland in New Delhi, that in the last three years the output of`ship-power’ output has grown four times and is set to grow further.

Mr Johansson said that there is a great opportunity for the ship building industry in India, which has access to prerequisites like labour, technology and a traditional strength in ship building.

However, there were concerns on the speed of development — “other countries are doing a lot”. Ship building has moved out of Europe to Asia. First to Japan, then Korea and now Vietnam was growing fast.

India needs to reform its taxation policies, which seem to support imports rather than local manufacture. Infrastructure at the sea ports, airports and roads need to be upgraded, he said.

Wartsila’s facility near Mumbai now assembles engines, reconditions and repairs engine parts and propeller blades and manufacturers gear boxes and nozzles for exports.

Wartsila is a €3-billion company, and among the global players in manufacturing ship engines for use in transport and passenger ships and has also entered ship designing.

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