Wärtsilä to Boost Capacity at Sustainable Technology Hub

Why It Matters

The capacity lift positions Wärtsilä to capture accelerating demand for low‑carbon power and propulsion solutions, reinforcing its market leadership as industries decarbonize. It also aligns the firm’s growth trajectory with its 2030 sustainability targets, boosting investor confidence.

Key Takeaways

• €140M investment expands STH capacity 35%
• Production boost ready Q1 2028
• 2025 order intake up 17% to €6.866B
• Carbon‑neutral goal by 2030 supported by hub
• Engine tech meets rising power, marine regulation demand

Pulse Analysis

Wärtsilä’s €140 million upgrade of the Sustainable Technology Hub (STH) in Vaasa reflects a strategic response to surging demand for its marine and energy engines. The 35 % capacity increase, enabled by an 11,000 sq m extension, will come online in early 2028, allowing the Finnish manufacturer to scale output while maintaining its integrated training and remote‑monitoring capabilities. This investment follows a year in which Wärtsilä posted an all‑time high operating profit of €833 million and a 17 % jump in order intake, underscoring the commercial momentum behind its flexible power solutions.

The broader market context drives the hub’s expansion. Global electrification, rapid data‑centre growth, and the need to replace aging power‑generation assets are pushing utilities toward reliable, fast‑ramping engines that can balance intermittent renewables. Simultaneously, shipowners face stricter emissions regulations and seek fuel‑flexible propulsion to stay competitive. Wärtsilä’s engines, praised for efficiency and low‑carbon operation, are increasingly the preferred choice, making the STH’s added capacity a critical lever for meeting these evolving power and maritime requirements.

Beyond immediate sales, the STH upgrade is central to Wärtsilä’s 2030 carbon‑neutral roadmap. The facility already generates its own heat and electricity, feeding excess power back to the grid and storing thermal energy for internal use. Scaling this self‑sufficient model not only reduces operational emissions but also showcases a replicable blueprint for sustainable manufacturing. Investors and industry analysts view the expansion as a signal that Wärtsilä can sustain growth while delivering on its environmental commitments, strengthening its competitive edge in the decarbonizing energy and shipping landscapes.

Wärtsilä to boost capacity at Sustainable Technology Hub

Paul Bartlett, Correspondent · February 4, 2026 · Image: Wärtsilä

Wärtsilä said it will spend about €140 million to boost production capacity at its Sustainable Technology Hub (STH) as it announced an all‑time high operating result and cash flow for 2025.

The Nasdaq Helsinki‑listed company plans to increase production capacity by 35 % at its STH in Vaasa, Finland, and its associated supply chain. The move comes as demand for the group’s products and services continues to climb in the marine and energy sectors.

The additional capacity is expected to come on stream in the first quarter of 2028. It will enable the company to meet demand for a growing number of engines and support customers’ needs and continuing business growth in the future, the company said.

The 90,000 sq m STH, which was commissioned in 2022, is the production site for all engines. It also has a training centre and one of the company’s remote‑monitoring centres for customers across the world. Wärtsilä has spent more than €400 million on the complex since announcing it in 2018. Last April, it announced a €50 million investment in new R&D facilities. This 11,000 sq m extension will be commissioned early in 2028 and will house the new production capacity.

The STH is a key component of the company’s strategy of becoming carbon neutral across its operations by 2030. The building generates its own heat and electricity, while excess power is returned to the grid and heat from engine tests and other processes is stored in a thermal energy tank to heat the facility.

Commenting on the planned production increase at the STH, Wärtsilä’s president and CEO, Håkan Agnevall, said:

“Global demand for reliable power is rising sharply as industries electrify, climate warming is driving needs for cooling, and data centres scale at unprecedented speed. In regions like North America and Europe, there are needs to renew ageing power generation infrastructure, while the increasing share of renewables in the global energy mix accelerates the demand for thermal balancing power to secure power system stability.

“Wärtsilä’s flexible and energy‑efficient engine technologies are increasingly the trusted choice for customers when addressing evolving power requirements. In parallel, shipowners are prioritising fuel flexibility and fuel efficiency to secure long‑term competitiveness and compliance with evolving marine regulation. By expanding production capacity at the Sustainable Technology Hub and the associated global supply chain, we are strengthening our operational readiness for further growth,” he added.

The company revealed that in calendar year 2025 order intake in marine and energy rose by 17 % to €6.866 billion while operating profit climbed 16 % to an all‑time high of €833 million.

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About the Author

Paul Bartlett – Correspondent

UK‑based Paul Bartlett is a maritime journalist and consultant with over four decades of experience in international shipping, including ship leasing, project finance and financial due diligence procedures. He is a former editor of Seatrade magazine (later Seatrade Maritime Review) and has contributed to a range of Seatrade publications, including the Green Guide and Middle East Workboats and Offshore Marine. In 2002 he founded PB Marine Consulting Ltd and has worked on numerous consultancy projects, as well as contributing regular articles on the maritime sector for various shipping publications and online services in Europe, Asia, and the US.