"Wärtsilä has analysed its manufacturing footprint as announced in October. To adjust to the fundamental changes in the market Wärtsilä plans to reduce its manufacturing capacity.If you look at the chart above, Finland has never been so uncompetitive, since the past decade or so. Had Finland stayed with the "Markka", the Finnish currency before the Euro, they would have certainly devaluated it...but they can't.
Wärtsilä also plans to move the majority of its propeller production and auxiliary engine production to China, close to the main marine markets. The current propeller manufacturing in Drunen, and the component manufacturing DTS in Zwolle, both in The Netherlands, are planned to be closed.
The Wärtsilä 20 generating set production in Vaasa Finland is planned to be closed and moved to China in order to stay competitive in this market."
The result is a slow but sure disappearance of the manufacturing from Finland to low cost countries like China as expressed by Wartsila in the above article. By the way, it is worth noting that China is artificially keeping its currency at low level which of course accelerate the "one way" globalization.
Obviously, the competitiveness is a function of the currency - the Euro - that is far too strong at the current time and of course wage growth agreement not inline with the current situation.