Wärtsilä will acquire the naval architecture and ship design company Conan Wu & Associates Pte Ltd (CWA), headquartered in Singapore. The deal includes partnership agreements regarding CWA’s business in Malaysia, China and Hong Kong.
The contract is valued at EUR 23 millions, to be paid in cash, and an additional amount to be paid based on the business’ performance in 2008-2010. In 2007, the turnover generated by CWA’s businesses was EUR 10.7 millions and the profitability was very good. CWA has 66 employees in Singapore.
Welcome Addition
The acquisition of CWA is a further major step in Wärtsilä’s strategy of strengthening its position as a total solutions provider. Expansion within ship design is an important move as it integrates and optimizes the various operating processes of the entire vessel. This combination of ship design know-how and equipment solutions and services creates customer benefits, for exxample in terms of improved efficiency and reduced emissions.
During recent years, Wärtsilä has developed and expanded its offering within ship design, first by establishing a conceptual design unit in 2004. This was followed by the acquisition of the German ship design company Schiffko in 2006. In July, Wärtsilä acquired the global ship design group Vik-Sandvik of Norway. Today, Wärtsilä’s ship design activities include operations in more than ten countries and more than 500 employees.
Growth Potential
CWA is a leading player in this field, specializing in naval architecture and ship design services to ship builders and ship owners. The company’s core competence is in the design of offshore vessels and tugs, as well as barges and smaller merchant vessels. CWA has a strong market position in South and South East Asia. As a part of Wärtsilä, CWA has excellent growth potential throughout the region, including China, India and Vietnam.
CWA will be integrated into Wärtsilä Ship Design within the company’s Ship Power business. All personnel in Singapore – including the former owners Dato Conan Wu and Mr. Mok Kim Terng as well as the rest of the management of CWA – will continue in Wärtsilä’s service.
