MAN Diesel & Turbo will pay back USD 8 million to Norwegian carrier Skaugen in the protracted fraud case related to diesel engines which used more fuel than stated in contracys. "MAN Diesel & Turbo SE has substantial outstanding claims against Skaugen," says MAN in a comment to ShippingWatch.
An engine factory will strengthen and upscale Wärtsilä's position as supplier of engines for the Chinese shipbuilding industry. In spite of the yards being under pressure, the supplier eyes a big market for, in particular, vessels for Chinese companies, says James Han, managing director of Wärtsilä China, to ShippingWatch.
Overcapacity. Few newbuildings. Low oil price. Few investments in offshore. There are numerous reasons why Wärtsilä is forced to present a weaker result in the third quarter 2016, and for the sliding revenue. Prospects also look less than stellar, according to the company's interim report.
Finnish engine manufacturer Wärtsilä's maritime business, Marine Solutions, is benefiting from Chinese tourist interest in cruise liners at a time where shipping and offshore are in the midst of crisis. "We believe the boom will continue," says President of Marine Solutions, Roger Holm.
Fewer newbuildings and the standstill in the offshore sector mean that Wärtsilä is cutting 550 jobs. This announcement arrives in relation to the first quarter interim report, which shows a decline in the operating result.
Marine equipment association Sea Europe has no intentions of discussing the case of Wärtsilä's engine test fraud. Not now, nor late in June, the association's Secretary General tells ShippingWatch, thus overruling his own chairman Kjeld Dittmann.
Maritime equipment association Sea Europe does not see a need to hold an extraordinary meeting about the test scandals at Wärtsilä and Man Turbo & Diesel. The chairman otherwise floated the idea back in March.
The major supplier took a hit across all business segments from the rough market conditions in shipping and offshore as well as by fierce competition on the important Brazilian car market. MAN expects lower sales and a decreased operating result for 2016.
The European engineering industry has been hit with two major fraud cases by two high-profile members - MAN Diesel & Turbo and now Wärtsilä - in just a few years. "This is something the industry will remember. In ten years as well," Kjeld Dittmann, Chairman of Sea Europe, tells ShippingWatch.
The market for ship engines is currently under pressure, opening opportunities for growth through acquisitions, says the CEO of MAN Diesel and Turbo (MDT), Dr Uwe Lauber, in an interview with ShippingWatch. "We need to expand our business," he says.