Finnish technology group Wartsila is aiming to simplify its shipping operations through its second structural reorganisation in a year.
The propulsion system and scrubber maker said maritime operations would continue in three independent divisions.
The company wants to speed up strategy execution with the change, it said.
The first new segment, Marine Power, will focus on its engines and propulsion solutions, while Marine Systems will look after gas solutions, exhaust treatment, marine electrical systems and seals and bearings.
Finally, Marine Voyage will provide navigation, simulation and training, fleet operation and ship traffic control products.
Spokesman Atte Palomaki told TradeWinds: "We have been contemplating this for some months, but the detailed planning starts only now with the announcement of the big picture.
"By giving more accountability to the front line in Marine Power, Marine System and Marine Voyage, we can serve our different customer types even better going forward.
"We expect that the power to make decisions equals entrepreneurial mindset and thus drives motivation of our people."
New appointments
As a result, three new appointments have been made to the group management board, one of whom is a new recruit.
Marine Business president Roger Holm becomes president of Marine Power, while Portfolio Business boss Tamara de Gruyter has been appointed president of Marine Systems.
Meanwhile, Sean Fernback has been brought into the company as head of Marine Voyage.
He joins Wartsila from marine electronic company Navico, where he was most recently chief technology officer.
The energy business is unchanged.
Increasing influence
Wartsila is becoming an increasingly important player in the marine sector, moving beyond its traditional engine manufacturing business to spearhead work in eco-technology and software through smart systems and work on autonomous vessels.
The company said the new split is a continuation of the changes made in 2019, in which the equipment and service businesses were integrated to strengthen the focus on "complete life cycle solutions".
"Wartsila is committed to leading the way towards a more sustainable maritime future," chief executive Jaakko Eskola said.
"We have today the broadest offering for the marine markets, and I am confident that establishing three independent marine entities, with a stronger focus on the specific needs of their respective markets, will accelerate the execution of our smart marine strategy. Our customers will benefit from increased agility and speed in decision-making, as well as an even more empowered and effective front line."
First LPG engine moves closer
Last month, Wartsila revealed that BW LPG is converting four more VLGCs to LPG propulsion following a successful test of the first ever such fuel supply system (LFSS).
The technology group said its kit has undergone a full trial with a two-stroke engine.
BW had originally signed up in 2018 for four retrofits, but has now agreed a contract for four more. The vessels will be the first to ever run on LPG.
In January, it said demand for its exhaust gas cleaning systems had fallen due to uncertainty in shipping markets.
Owners are wary of fuel availability issues and unsure of future developments in the race towards decarbonisation, the group added.
Fourth quarter net profit was down at €102m ($112m), from €153m in the same period of 2018.
Revenue grew to €1.68bn against €1.53bn, but operating costs and wages were higher.
The order intake decreased 17% to €1.55bn.
