Global technology company Wärtsilä has announced a major investment to increase its production capabilities in Finland. The company plans to invest approximately €140 million to expand production capacity by around 35% at its Sustainable Technology Hub (STH) in Vaasa.
The expansion will significantly increase Wärtsilä’s ability to manufacture engines used in both energy and marine sectors, while also strengthening the company’s global supply chain network.
The new production capacity will be added within the ongoing expansion of the Sustainable Technology Hub facility. According to current plans, the additional manufacturing capabilities are expected to be fully operational during the first quarter of 2028.
Demand for reliable electricity generation continues to grow rapidly across global markets. Several factors are contributing to this increase, including:
rapid growth of data centres
increased electrification of industries
higher demand for cooling due to climate change
replacement of aging power infrastructure
growing share of renewable energy in power systems
As renewable energy capacity expands worldwide, power grids increasingly require flexible thermal generation that can balance fluctuations in wind and solar production.
Wärtsilä’s engine-based technologies are widely used to provide this balancing capacity, helping utilities maintain grid stability while integrating renewable energy sources.
The expansion also reflects increasing demand from the marine industry, where shipowners are seeking propulsion systems that deliver improved fuel efficiency and fuel flexibility.
According to Wärtsilä President and CEO Håkan Agnevall, the investment will allow the company to better support customers in both sectors.
He noted that Wärtsilä’s engine technologies are becoming a trusted solution for companies responding to changing power generation needs while also supporting the decarbonisation of the energy and shipping industries.
The additional manufacturing capacity will help Wärtsilä respond more effectively to these market developments and maintain long-term growth.
The Sustainable Technology Hub (STH) in Vaasa plays a central role in Wärtsilä’s global operations.
Opened in 2022, the facility currently covers approximately 90,000 square metres and employs more than 2,000 professionals working across engineering, production, testing, and customer support.
The hub functions as a centre for innovation, research, manufacturing, and collaboration, bringing together Wärtsilä engineers, customers, technology partners, and academic institutions.
Every month, the facility hosts around 1,000 visitors, including customers, partners, and industry stakeholders.
All engine types within Wärtsilä’s product portfolio are manufactured at the Sustainable Technology Hub. The facility also includes:
advanced engine testing facilities
a training centre for customers and service personnel
a remote monitoring centre supporting global customers
Since the original announcement of the project in 2018, Wärtsilä has invested more than €400 million in developing the site.
The company is also constructing an additional office building at the site that will bring together approximately 3,800 employees based in Vaasa.
The Sustainable Technology Hub has been designed with sustainability at its core. The facility is built to be largely energy self-sufficient, producing its own electricity and heat.
Any excess electricity generated at the site can be fed back into the local power grid. Heat generated during engine testing processes is captured and stored in a thermal energy storage system, allowing the facility to reuse the energy efficiently for heating.
This approach supports Wärtsilä’s broader goal of achieving carbon neutrality in its own operations by 2030.
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