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Wärtsilä Oyj Abp (HEL:WRT) Wärtsilä Corporation and CEVA Logistics, Press release 1 September 2008 at 9.00 EET
Wärtsilä, a market leader in ship power and decentralized power plant solutions and CEVA Logistics, one of the leading supply chain companies in the world, signed a cooperation agreement for the 24/7 global spare parts transportation management and "control tower" services for Wärtsilä Services. For CEVA, the contract value is approximately EUR 32 million per annum over the next 3 years. The agreement follows Wärtsilä's earlier announcement of its intention to centralize spare parts logistics and to build a Central Distribution Center facility in the Netherlands. The new operating model is planned to be fully implemented by 2011.
CEVA Logistics will take responsibility for shipments of spare parts to Wärtsilä's various warehousing facilities in Europe and for the spare parts deliveries to Wärtsilä's international customers. Until today Wärtsilä's seven product companies, in Finland, Italy, the Netherlands, France, Sweden, Norway and Switzerland, are responsible for the global logistics of the spare parts for their own products. A centralisation of these activities will result in faster and more efficient spare part deliveries. Key is to provide visibility, transparency and service improvement of all flows.
"Consolidating logistics with a specialised partner will improve customer service globally by allowing parts deliveries 24 hours a day 7 days a week," comments Mr Tage Blomberg, Group Vice President, Wärtsilä Services. "The set-up will also support our growth targets in the fast moving business environment to become a world class service provider." adds Blomberg.
"CEVA is very proud to partner with Wärtsilä," says Mr Onno Meij, Managing Director of CEVA Logistics Benelux, Nordics & France. "The redesign of the spare parts logistics is a program of strategic importance for Wärtsilä and we are honoured to be given the trust to support this important step. We have been preparing the implementation of the transportation consolidation in a joint 24/7 project team during the last months. This teamwork gives the cooperation an excellent position to deliver efficient logistics services to Wärtsilä's customers."
For more information please contact: Wärtsilä Corporation Tage Blomberg Group Vice President, Wärtsilä Services +358 10 709 2425
Eeva Kainulainen VP, Global Communications +358 40 568 0591 eeva.kainulainen@wartsila.com
Wärtsilä in brief Wärtsilä enhances the business of its customers by providing them with complete lifecycle power solutions. When creating better and environmentally compatible technologies, Wärtsilä focuses on the marine and energy markets with products and solutions as well as services. Through innovative products and services, Wärtsilä sets out to be the most valued business partner of all its customers. This is achieved by the dedication of more than 17,000 professionals manning 160 Wärtsilä locations in 70 countries around the world. Wärtsilä is listed on The Nordic Exchange in Helsinki, Finland. For more information, please visit www.wartsila.com
CEVA. Making Business Flow
CEVA Logistics is a leading global supply chain management company. We provide end-to-end design, implementation and operational solutions in contract logistics and freight forwarding to large and medium-sized national and multinational companies. CEVA employs 54,000 people and runs an extensive global network with facilities in over 100 countries. Following the merger with EGL in August 2007, the new combined company had pro forma sales of € 6.3 billion. For more information, please visit www.cevalogistics.com
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT of 1995:
The statements included in this news release, and other statements that are not historical facts, may contain forward-looking statements. In addition to the assumptions specifically mentioned in the above paragraphs, there are a number of other factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, the process of combining EGL and CEVA, the actual effects of recent and future regulatory changes and technological developments, globalization, levels of spending in major economies, the economic climate in Asia and the US, levels of marketing and promotional expenditure, actions of competitors and joint venture partners, employee costs, future exchange and interest rates, changes in tax rates, unexpected costs of integrating recently acquired businesses and future business combination or dispositions and other factors detailed in risk factors and elsewhere in CEVA and EGL's most recent Annual Reports, including but not restricted to the EGL Annual Report on Form 10-K. Further information concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. EGL and CEVA disclaim any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
