The company was created in 1987 in order to improve shipbuilding productivity by combining the Wärtsilä and Valmet yards under the same organisation.

The five-year-plan of 1981–1985 guaranteed the vital basic load for the Finnish yards, but the plan of 1986–1990 meant the end of the golden era for the Soviet export.

The Soviets negotiated very low prices for the few ships included in the plan, and the ordered quantity remained even much lower.

In order to maintain the employment in its shipyards the Finnish government decided to deliver the ships to Soviet Union for credit.

But the top management, however, did not share Saarikangas's views, and despite being appointed the Vice President of Wärtsilä Marine, he was relocated to United States.

[3] At very first Laine made a new agreement with the Soviet Sudoimport about moving partly of a project with nine ships from Valmet yards to Wärtsilä Perno shipyard.

In the following month the Swedish Rederi Ab Slite ordered a 40,000 GT cruiseferry for route between Finland and Sweden; also this contract included an option for a sister ship, which was signed in the following July.

[2] The suddenly grown order book put Wärtsilä Marine at the front of new challenges, and the company's structural weaknesses came out.

Despite the losses, Wärtsilä Marine did its utmost to be able to deliver the ordered craft to Soviet Union, because it wanted to maintain the long-term business partnership.

The result of the year collapsed down to FIM 638 million of losses and Wärtsilä Marine's situation started to look alarming.

[2] The general manager of Wärtsilä Corporation Tor Stolpe resigned at the end of 1988 and Pekka Laine was appointed to his place from beginning of 1989.

Laine started frantically pondering a way to save the corporation from the Wärtsilä Marine's losses which were then estimated already one billion Finnish markka.

[2] Saarikangas was called back to Finland from the US and reinstalled the head of Helsinki Shipyard; he directly set up a team to start an urgent reorganisation programme.

[3] The media reported at the beginning of August that Wärtsilä Marine is on the verge of bankruptcy and it could be only saved by urgent support by the state.

[2] However, on 10 August the state and Wärtsilä Marine announced a financing plan, in which also two Finnish banks were involved, for carrying out the unfinished shipbuilding projects.

[2] On 12 October 1989 the board of Marine suggested declaring the company bankrupt at a general meeting that should be held on 2 November.

On the other hand, he thought that the bankruptcy was, although theoretically avoidable, still the easiest way to restructure the company; Saarikangas re-hired almost all the blue-collar workers, though only two-thirds of the white collars.