WELCOME TO WÄRTSILÄ CHINA

INVESTORS VISIT IN SHANGHAI (SEP. 23 2015)

James Han
President of Wärtsilä China

1 © Wärtsilä Investors visit Sep. 23 2015

Wärtsilä China Today

• 20+ years history in China

• Well positioned for SP and
Service business
• One of Wartsila biggest market
with annual revenues of ~10% of
group sales

• Broad manufacturing footprint

through JVs and fully owned
companies.
• In the marine market, certain
leading Chinese ship owners
and shipyards are not only
Wärtsilä customers, but also JV
partners.

2 © Wärtsilä Investors visit Sep. 23 2015

 Major Milestone of Wärtsilä in China 2002
Integration of
John Crane-Lips
operation in
Shanghai
following global
1986 1994 1998 acquisition in
Establishing Establishing Establishing
April 2002
1978 Wärtsilä Diesel Shanghai Dalian
Signing of (China) Ltd., Representative Representative
Hong Kong as
1996 Office
licensee Office, Beijing
First Investment
agreement Joint Venture Representative
in Taicang
between with Kemklen Office, Wärtsilä
Electric Power
Sulzer with Hong Kong Diesel Panyu
Co., Ltd. (partial
2004
CSSC Service Station Wärtsilä-CME
ownership)
(Joint Venture) Zhenjiang
Propeller Co. Ltd.
1999 founded in June.
1991 Upgrading Shanghai In the JV Wärtsilä
Wärtsilä Diesel Representative Office has 55% and CME
(China) Ltd., 1995 1997 to Wärtsilä NSD has 45%
1982 Hong Kong Merging with Engine (Shanghai) ownership
Developing Setting up Hong
became a wholly New Sulzer Ltd. with business
agent Kong Service
owned company Diesel Hong scope of trading and
relationship with Station
under Wärtsilä Kong Ltd. servicing Setting up
Kemklen Diesel Finland Waigaoqiao
Industrial Oy, Helsinki Workshop in
Suppliers Ltd., Shanghai
Hong Kong

33 3 ©
© Wärtsilä
Wärtsilä
© Wärtsilä Investors visit Sep. 23 2015
 Major Milestone of Wärtsilä in China
2005
Wärtsilä acquired Deutz
medium and high speed
engine marine service
business and started to
handle the business
from April.
Inauguration of Wärtsilä
Propulsion (Wuxi) Co.
Ltd. (wholly owned) in
June
2006
Inauguration of Wärtsilä
Qiyao Diesel Co., Ltd
(Shanghai)
(a 50/50 JV with CSIC
SMDERI to
manufacture marine
auxiliary engines) in
June 2006
2012
Wärtsilä acquired the
Hamworthy plc group.
JV Contract Signed to
establish Wärtsilä Yuchai
Engine Company Ltd.
2011
2007 Inauguration of CPP
Inauguration of
production at Wärtsilä-CME
Tangzhen Service
Station in March
2010 Zhenjiang Propeller Co.,
Wärtsilä China Ltd. In June
Engineering Center
was setup 2014
Wärtsilä announced new joint venture
with CSSC for manufacturing medium
2009 speed diesel engines in July
Inauguration of Qingdao Qiyao
Wärtsilä and CSSC to join forces in 2-
2008 Wärtsilä MHI Linshan Marine
stroke engine joint venture to take over
Diesel Co Ltd (QMD) in April.
The top Wärtsilä's 2-stroke engine business
management of
(CSIC 50%, Wärtsilä 27% and
Wärtsilä Ship Wärtsilä divested its shares in QMD 2-
Mitsubishi 23%)
Power moved to stroke joint venture in July
Inauguration of Wärtsilä Ship
China
Design (Shanghai) Co. in June
Inauguration of Wärtsilä Yuchai Engine
Zhoushan Services Station
was setup in Sept. Company Ltd. In September

Signing of Strategic
Cooperation Framework
Agreement with CSSC in Nov
4 ©
44
Wärt ©©
Wärtsilä
Wärtsilä Investors visit Sep. 23 2015
 Wärtsilä Footprints in China
WCN, Dalian Rep. Office

WCN Shanhaiguan Shipyard Service Station

WCN, Beijing Rep. Office
Wärtsilä Services (Shanghai) Co Ltd
Tianjin Representative Office

Wärtsilä CME Zhenjiang Propeller Co Ltd

FPPs, CPPs, shaft lines, blades and hubs

Cosco-Shipyard Total Automation Co Ltd

Wärtsilä Services (Shanghai) Co Ltd

Wärtsilä Ventures Wärtsilä Ship Design (Shanghai) Co Ltd
Wärtsilä HRDD Services Station
Joint Ventures
Wärtsilä Zhoushan IMC-YY Services Station

Wärtsilä (Suzhou) Ltd. CSSC Wärtsilä Engine (Shanghai) Co. Ltd

Formal name is Hamworthy (Suzhou) Ltd.
Sewage Water Treatment Plant, Inert Gas Wärtsilä Qiyao Diesel Shanghai Co Ltd
System, Control Panel Wärtsilä Auxpac 20 and 26 gensets

Wärtsilä Propulsion (Wuxi) Co Ltd

TTs, LCTs, seals & bearings and components

Wärtsilä Services (Shanghai) Co Ltd, Nansha Office

WCN ChengXi Guangzhou Service Station
WCN Yiulian (Shekou) Dockyards Service Station
Wärtsilä China Ltd. (H.K)
• 5 JVs, 2 fully-owned factories
• 9 service centers Wärtsilä Yuchai Engine Co., Ltd
• 1500+ employees Wärtsilä 20, Wärtsilä 26 and Wärtsilä 32 series of medium speed engines

5 © Wärtsilä Investors visit Sep. 23 2015

 Chinese Economy and Market Update
• China economy further slowed down with headwinds both externally and internally, despite
7% GDP expansion in H1.

• Export fell by 6.1% yoy in Aug and imports shrank by 13.6%. However exports to US and
ASEAN increased by 6.1% and 5.6% respectively.

• PMI slipped to 49.7 in Aug from 50 for July, the lowest in 36 months since 8/2012.
However, sub PMI for high tech manufacturing (52.2) and consumption sector (54.6) remain in
expansion

• Medium and long term still look positive, as service sector now accounts for 50% of GDP
and private consumption contributes more than 60% of GDP growth. Slowdown is necessary
to make structural transition from export/investment to more sustainable consumption/service
mode. Government has sufficient tools to stimulate economy to avoid hard landing.

• China shipbuilding industry facing huge challenges. First 8 months in 2015, new contract
order dropped 68.3% yoy to 15 million DWT and order book decreased 12.1% to 135 million
DWT. However total completion increased by 14.6% to 25.31 million DWT. In terms of order
book, China still holds the largest market share (39.7 million CGT), followed by Korea (31.8
million CGT) and Japan (19.77 million CGT). Main challenges from weak demand,
overcapacity, difficult for private yards to get financing, low oil price, etc.

• Power Market has great potential for gas and renewable energy. China’s installed gas-
fired power capacity reached 55.67 GW in 2014, accounting for 4.1% of total power mix,
increased from 3.4% in 2013. Gas consumption in H1 increased bit slow by 3.3%, but the
continued decline of imported gas price could boost consumption. 13th five year plan will focus
on further expansion of renewable energy. By 2020, wind power would be tripled from current
75 GW to 200 GW and solar would jump from 15 to 100 GW.

6 © Wärtsilä Investors visit Sep. 23 2015

Growth opportunities in China

MOVE TO A URBANIZATION & FOCUS ON GREEN DRIVE FOR

SUSTAINABLE SURGING OF MIDDLE ECONOMY INNOVATION & HIGH
ECONOMIC GROWTH CLASS END MANUFACTURING
PATTERN

• Transform from
• ~ 70% of population • Shift to renewable • Move up the labor
Invest/export focused will live in the cities and clean energy value chain
to domestic by 2035
consumption • Increase energy • Heavy investment in
• ~ 200 cities > 1 efficiency and reduce R&D and focus on
• Shift to a million habitants pollution domestic brand
sustainable, quality & creation
efficient growth (6-7 • 700 m middle class • Invest > 8 trillion RMB
% GDP growth) by 2020 and 1.4 b by (1.28 trillion USD) in • From “made in
2030 green economy over China” to “innovated
• Deepen economic the 12th Five-Year in China”
and political reforms Plan Period (2011-
15).

7 © Wärtsilä Investors visit Sep. 23 2015

The most important market for Marine Solutions

POSITIVE GOVERNMENT
WORLD LEADING POLICY
POSITION DEVELOPMENTS TO
MEET CHALLENGES SUPPORTING
MARINE INDUSTRY
• No.1 trading nation • Shift from Merchant to
with biggest offshore and special, • Drive technology
shipping fleets from standard low value innovation
to complex high value • Accelerate industry
• Largest • Increasing focus on fuel restructure to reduce the
shipbuilding country efficiency and overcapacity
(37% of world order environmental • Develop “Green Ships”
book by Jan-Aug performance (high efficiency with low
2015) • Strong demand from emission and fuel
domestic ship-owners consumption.
from offshore, special, • Push for 80% local content
and LNG for marine equipment by
2015

8 © Wärtsilä Investors visit Sep. 23 2015

Power market opportunities for Energy Solutions
9

NATIONAL POLICY STRONG GROWTH

WORLD LEADING
PUSH FOR CLEAN FROM GAS-FIRED
POSITION
ENERGY POWER PLANT

• Largest power production &
consumption country
• Overtook US in 2009 as the
largest investor in clean tech
industries
• Leading position in renewable
energy (wind and solar)
creates potential for smart
power generation
• Develop >1,000 NGDE projects • Current installed gas ~36 GW, will
with 50 GW new capacity by
2020
• Increase Gas-fired from 3.9% to
8.3%
• Construct a strong and smart
national grid
reach ~150 GW by 2020
• Gas projects are also driven by
provincial, local level and big
SOEs
• 1/3 of power in Beijing (38%)
coming from gas-fired (3.5GW)
• Jiangsu Province installed 5.3
GW with 8 gas-fired GT and 10
CHP co-gen plants

9 © Wärtsilä
© Wärtsilä Investors visit Sep. 23 2015
 Wärtsilä Services in China

We provide total and 24/7

services Shanhaiguan

Engine Services

Propulsion System
Dalian
Automation

Boiler
HRDD
In-situ Machining
Shanghai
Training

Reconditioning
Zhoushan
Guangzhou
Taipei
Longxue
Kaohsiung
Yiulian
Hong Kong

50 largest Repair Yards in China that dock foreign ships

Wärtsilä presence

10
10 ©©
Wärtsilä
Wärtsilä Investors visit Sep. 23 2015
 Major Wärtsilä Services workshops in China

Shanghai Guangzhou Hong Kong

• Established: 1999 • Established : 1994 • Established: 1991

• Location: Tangzhen Shanghai • Location: Nansha, Guangzhou • Located in Hong Kong

United Dockyards (HUD)
• Main activities: • Field service covering
– Reconditioning southern China • Supporting visiting vessels,
– External Field Services Hong Kong ship owners and
– In-situ and Afloat repair • Specialized in servicing ship management
– Automation Woodward governors and companies
ABB/Napier Turbo Chargers
– Commissioning and
Start-ups • Workshop reconditioning of
entire gensets

11 © Wärtsilä Investors visit Sep. 23 2015

 Service cooperation with Chinese shipyards

Shanhaiguan Shanghai Guangzhou

2008 2010 2010

Zhoushan Shenzhen
2011 2011

In order to serve customers better, Wärtsilä China entered a

cooperation with major shipyards in China.

A team of Wärtsilä experts is permanently stationed there

and jointly provide a full range of field services.

12 © Wärtsilä Investors visit Sep. 23 2015

 Wärtsilä China manufacturing facilities

We provide market leading products

13 © Wärtsilä Investors visit Sep. 23 2015

 Delivery Centre – Thrusters, Seals, Bearings / Wuxi

Wärtsilä Propulsion (Wuxi) Co., Ltd

Inauguration phase 2 November 2007
Employees: 161 (April 2013)

14
14 © Wärtsilä
14 ©
© Wärtsilä
Wärtsilä Investors visit Sep. 23 2015
 Delivery Centre – CPP & FPP / Zhenjiang

Wärtsilä CME Zhenjiang Propeller Co., Ltd

Founded in 2004 and new CPP factory inauguration in June 2011
Employees: 407 (April 2013)
Joint Venture (Wärtsilä 55%, CSSC1 45%)
Note: CSSC1 = China State Shipbuilding Corporation

1515 ©© Wärtsilä
Wärtsilä Investors visit Sep. 23 2015
 Delivery Centre - Auxpac 20 & 26 / Shanghai

Wärtsilä Qiyao Diesel Company Ltd. (Shanghai)

Inaugurated in 2006
Employees: 141 (April 2013)
Joint Venture (Wärtsilä 50%, CSIC1 50%)
Note: CSIC1 = China Shipbuilding Industry Corporation

Note: 1 CSIC = China Shipbuilding Industry Corporation

16 16© Wärtsilä
© China
Wärtsilä 28 September 2015 Corporate Presentation
Investors visit Sep. 23 2015
1616 ©©Wärtsilä
Wärtsilä
 Delivery Centre- Environment & Safety Product / Suzhou

• Inauguration in 1998 (former Hamworthy Suzhou)

• Employee: 103 (April 2013)
• Products: sewage water treatment plants, inert gas systems,
control panels

17 © Wärtsilä Investors visit Sep. 23 2015

 Wärtsilä Yuchai Engine Co., Ltd / Zhuhai

• 50/50 Joint venture owned by Wärtsilä and

Yuchai Marine Power Co., Ltd (YCMP), a
subsidiary of Guangxi Yuchai Group.
• Location: Zhuhai, Guangdong Province, China
• Products: Wärtsilä 20, Wärtsilä 26, Wärtsilä 32
series of engines and generating sets.
• Total annual capacity(engine): 400
• Total annual capacity(MW): 1,000
• Production area (square meters): 22,616

18 © Wärtsilä Investors visit Sep. 23 2015

 Wärtsilä China Growth Strategy

Launch key initiatives to support long term growth

Strengthen high level customer contacts and external
relationships (government, JV partners, etc) to ensure business
success.
Simplify operating model with entrepreneurial driven
organization to be more agile and react faster
Create a strong China organization by introducing best
practices, professionalism and high performance culture
Attract develop and retain the best talents to create highly
motivated workforce

19 © Wärtsilä Investors visit Sep. 23 2015

 Development of partnership in China continues:
CWEC, a new 4-stroke engine Joint Venture between CSSC and Wärtsilä

Joining the forces of two major players in marine business sector

Largest shipbuilding group in China Global leader in complete lifecycle

and in the world power solutions for marine industry
10 shipyards covering over 25% of China Market leader in 4s marine engines and
shipbuilding order book gas, DF technologies and solutions,
optimized for offshore, LNGC, C&F

W26 W32

W34DF W46F, W46DF

20 © Wärtsilä Investors visit Sep. 23 2015

 CWEC Video

Play Video

21 © Wärtsilä Investors visit Sep. 23 2015

 WÄRTSILÄ
MARINE SOLUTIONS

Hans Laheij, Area Sales Director,

Marine Solution Sales, Middle East and Asia
22 / 36 © Wärtsilä © Wärtsilä Doc.ID: Revision: Status:
 Market environment

23
 China, South Korea and Japan dominate in the shipbuilding market

Builder Country shares ( CGT)

Others Europe U.S.A United Kingdom South Korea Japan China P.R Other Asia
100%
Other Asia

90%

Uni ted Kingdom China P.R CGT

80%
37.4%
GT
70% 40%

U.S.A
60% Ja pa n

CGT
50% 21.1%
GT
22.2%
40%

30%
Europe South Korea CGT
27.9%
20% GT
29.4%

10%
Others
0%
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Source: Clarksons

24
 Contracting Activity Development – All vessels
Merchant Offshore Cruise and Ferry Special vessels 3 months moving average in CGT

250 5,0

227

4,5
210

200 4,0
187

167 3,5
162

150 3,0
Number of vessels

134

Million CGT
129128
126
122 123 122 123
118 117 2,5
113 113 114
106107 107
101 102 102 102
95 94 94 94
100 92 93 2,0
88 88 88
82
76 78 77 76 76
75 75
69 71 70 70 71 71 71
68 1,5
64 63 64
59 61 60
57 56
53 52 54 55
50 51
47 45 46 47 46 46
50 1,0
38
31 32
25 27
23 23
0,5
13
10

0
0 0,0

August 2015 contracts: 51 vessels and 1,4 million CGT

Source: Clarksons

25 © Wärtsilä
 Contracting Activity - Builders

2015 total contracting activity = 692 vessels and 19,0 Million CGT

Builders 2015 YTD, Number of vessels Builders 2015 YTD, CGT

YTD Builders, No of vessels Spain YTD Builders, CGT
Germany
1%
3%
Finland
Vietnam RoW 3% RoW
2% Philippines
12% 5%
Philippines 3%
2%
Spain
3% China P.R.
Netherlands 32%
3% South Korea
39%
Japan
22%

Japan
21%

South Korea
25% China P.R.
24%

Intensifying competition in China

It is becoming increasingly difficult to operate as a private-owned shipyard in China in recent years due to growing competition
especially from China's state-owned shipyards, in addition to Japan and South Korea.

Source: Clarksons
26 © Wärtsilä
 Contracting Activity - Owners

2015 total contracting activity = 692 vessels and 19,0 Million CGT

YTD Owners, No of vessels

Owners 2015 YTD, Number of vessels OwnersYTD Owners,
2015 YTD, CGTCGT

Japan
13% Japan
17%

RoW
China P.R. 39%
Row 11%
49% China P.R.
10%
Greece
9%
Greece
9%

Denmark
Singapore 9%
5%
Norway
South Korea
5%
Denmark Germany 5% Germany Hong Kong
4% 4% 5% 6%

Source: Clarksons
27 © Wärtsilä
 $44.68

Source:
28 Bloomberg business
© Wärtsilä
 Oil Price Development

46.81

Source: Bloomberg business

29 © Wärtsilä
 Offshore is Highly Sensitive to Oil Price Development

Break-even oil price for offshore projects (fields not yet in production, Q1 2015)

33%-73 % of offshore projects

30% feasible between 60 and 80
USD/bbl
25% 0%-33% of offshore projects More than 73% of offshore
feasible with the price below projects feasible when the price
20% 60 USD/bbl climbs above 80 USD/bbl

15%
25,4% 27,0%
10% 17,5%
12,7%
5%
3,2% 4,8% 4,9% 4,6%
0%
<40 USD USD 40-50 USD 50-60 USD 60-70 USD 70-80 USD 80-90 USD 90-100 USD 100+

EIA oil price forecast (North Sea Brent crude, USD/bbl)

160
140
120
100
80 EIA predicts the price of Brent
60 crude to stay below 80 USD/bbl
40 until 2021
20
0
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
Source: Clarksons, EIA (oil price development in constant USD values)

30 © Wärtsilä
 Examples of significant projects in China

GOTLAND ROPAX Ferry

Full scope on main equipment
Length 200m
LNG powered
speed 28.5 knots
1650 PAX
1750 Lane m.

Evergas 27’500cbm LEG

Carrier

Full SCOPE on main equipment

31 © Wärtsilä
 Wärtsilä Marine Solutions

32 WÄRTSILÄ Marine Solution / Hans Laheij

 Wärtsilä Marine Solution’s Strategic Goal

Marine Solution’s strategic goal

To be recognized as the leading provider of innovative products and integrated
solutions in the marine and offshore oil & gas industry.

Efficiency Gas and dual-fuel Environmental

solutions solutions
LEADER IN
OFFERING
THROUGH

• Lifecycle solutions for ship owners and operators

• Integrated solutions for the shipbuilding industry, owners and operators
• The most competitive products and delivery process for the marine industry

33
The most complete marine offering on earth

34
A Comprehensive Product Portfolio

Automation Ballast water Compressors Engines & Exhaust gas cleaning

management generating sets

Gas systems Gears Inert gas Oil separation Power electric

systems

Propulsors Pumps & valves Seals, bearings & Waste & fresh water Ship design services
stern tubes management

35
 Wärtsilä Marine Solutions in China

Wärtsilä Marine Solutions has been growing fast in China. In order to further grow it is important to
focus on key differentiators that will ensure Marine Solutions continued success in China.

Tazama Pipelines Limited

Management
Tanzania Zambia

Our Offering People Customer communication

• Optimized solutions with local capabilities in • Entrepreneurial mindset. Make things • Fast response during delivery
project engineering and project management happen. process

• Standardized products for larger volume • Empower a qualified local organization in

markets with lean delivery process through order to capture and deliver customer • Fast engineering documentation
local factories satisfaction towards (Chinese) customers.
• Local commissioning support and
local site supervision

• Easy to deal with

INTERNAL USE ONLY

WÄRTSILÄ Marine Solution / Hans Laheij

 Wärtsilä Qiyao Diesel Company Ltd. (Shanghai)

37
 Shareholder Information – Wärtsilä & SMDERI / CSIC

CSIC (China Shipbuilding Industry

Corporation): a state owned enterprise
group and one of China’s largest
shipbuilding and ship repairing groups
in China.
CSIC has 3 listed companies, 28 non-
listed companies and 28 R&D
institutes in China, with in total
personnel of 150,000.
2014 CSIC sales revenue over USD. 32
billion (USD30 billion in 2013) .
SMDERI (Shanghai Marine Diesel Engine
Research Institute): a subsidiary of CSIC
with roughly 2000 employees, and is
the only research institute on marine
diesel engine in China.
SMDERI is specialized in marine diesel
engine, power plant, etc. and engaged
in R&D, manufacturing, technical
service, turnkey project.
SMDERI’s main business activities
include diesel engine, special engine,
power system solutions, engine-room
automation system, thermal
engineering and energy service

38
 WQDC Milestones 2005-2015

Letter of Intent Auxpac 16

3.2.2005 launch event
Introduction of 2.12.2013
Wartsila20 Genset
Ground 15.1.2010
breaking
23.9.2005
100th
Auxpac20
4.12.2007

1000th genset
delivery
28.6.2012
Inauguration
29.06.2006
500th genset
delivery
21.12.2009
JV Contract
21.4.2005
30.3.2015
39 Delivery 1st
Auxpac 16
 Business Scope

The scope of business is to produce, assemble and finish the AUXPAC

generating sets and relevant parts and assemblies designed by Wärtsilä,
and to sell & commission its own products in China.

Portfolio products:
Wärtsilä Auxpac 20
Wärtsilä Auxpac 26
Wärtsilä 20 genset
Wärtsilä Auxpac 16
Wärtsilä 20 main engine

40
 Business Scope

The Wärtsilä auxpac range is a pre-engineered generating set

WQDC manufactures A16, A20 and A26

The Wärtsilä 20 “classic” genset is a custom designed generating set often

used for special vessels and offshore

Wärtsilä 20 Main Engine application for customers located in China

41
 WQDC - State of the art factory

Our WQDC assembly & testing factory designed and build according to Wärtsilä
best practices
Engine assembly takes place by means of “Lean” production lines
WQDC has a high level of focus on EHS in all aspects of the factory design and
operations
Transport of engines in the factory takes place with “air cushions” to minimize
lifting for the engines

42
 WQDC Factory layout

Small
Washing
Goods
Technical area Painting Storage Reception
room Quality
Insp.

Step 4

Step 3

Step 2

Step 1
Step 5

Step 0
Test run
Dispatching

Elec.
Ass.

Assembly area Big

Washing
Machine
Finishing

Step 0
Step 5

Step 4

Step 3

Step 2

Step 1
Auxpac 20 & Wartsila 20 Assembly Line

Office building. Wartsila 16/20/26 Assembly Line

Sanitary facilities.

Total construction
area: ~9800 m²
Workshop: ~8000 m²
Office: ~1800 m²
Total site area:
~31000 m²

43
 WQDC genset applications

44
© Wärtsilä
 Wärtsilä’s support throughout WQDC operations

WQDC Vital
Network Functions
Companies
Material Production Finance Human Project &
Sales &
Supply Resource Contract
Management Marketing

Wärtsilä Supply Management

Customers
Quality

MS 4 stroke JV Engineering Centre China

Marine Solutions Sales

Services

Human Resources

45
 Wärtsilä’s support throughout WQDC operations

Wärtsilä Quality & EHS

Wärtsilä Supply Management
Our entire supply base is managed by
Wärtsilä. From supplier selection, making
frame contracts, supplier quality, supplier
development and sourcing of new suppliers
Management
Wärtsilä work processes and way of working
are fully implemented in WQDC. WQDC uses
the QDMS system and participates in Wärtsilä
programs such as LEAN, ZIP, safety reviews
and other continuous improvement programs

WÄRTSILÄ DESIGN, BRAND & QUALITY

Manufactured by WQDC

Wärtsilä Engineering Wärtsilä Service

Engineering information for each order will be
received from Wärtsilä engineering
department. WQDC has on site Wärtsilä
engineering support to facilitate trouble
shooting and quick assistance
Full support for the lifecycle and operation of
the vessel including the warranty obligations
will be taken care of by Wärtsilä’s global
service network. Where ever, when ever!

46
 Quality of the Components in our
engines

The engine quality is largely defined by the quality of the components that are
assembled together.
The selection of the supplier is done by Wartsila global sourcing as well as the
continuous development of these suppliers

In WQDC our engines include approx 65% western brand parts

•Imported from Europe
•Western brands that have a factory in China

47
 Sales channels

WQDC delivers engines worldwide depending upon customer needs

The majority of our products are delivered in China since most Merchant ships are
manufactured in China

WQDC has 2 sales channels: our own WQDC Sales Team and Wärtsilä Marine Solutions
Sales Team

Customers inside China

for only WQDC scope of WQDC Sales Organization
supply

Customers outside China

or customers inside China Wärtsilä Marine Solutions
with package sales Organization

48
 WQDC organisation set-up

Managing Director
Assigned by Wärtsilä

Financial Controller
Sales Department Assigned by SMDERI

Market development
Customer relationship Finance Department
Commercial negotiations
Business Control & reporting
Financial planning
Project management Department Accounting & bookkeeping
Taxation
TS & quotation management
Project management Quality & EHS Department
Auxpac 16 product ownership
Quality Control & Assurance
Management systems
Classification
Material Supply Department EHS

Operative Purchasing
Goods reception & warehousing HR & Admin Department
Logistics
Auxpac 16 sourcing HR
Admin
Production Department IM-IT

Assembly
Testing
Commissioning
49
 Management Systems

50
 QUALITY, DELIVERY & COST – IN THAT ORDER!

51
 Thank you for your attention!

Any questions or comments?

52
 Factory tour

Rules for today’s factory tour

* No PPE’s are needed since factory activities are

temporarily stopped
* Please walk through the middle of the factory
* We will first walk to the goods reception area
so that can start our tour by follow the production process

53