Stock Exchange release October 7, 1999 10:00:00 AM CET

METSO'S AUTOMATION AND CONTROL TECHNOLOGY COMBINES ITS NORTH AMERICAN OPERATIONS

Metso Corporation's Automation and Control technology business area, Neles Automation, will combine its Shrewsbury site operations with its other business units in the USA. This is part of Neles Automation's long-term strategy to enhance profitability by improving the cost efficiency as well as customer support and service in its key business areas.

Valve manufacturing in Shrewsbury, Massachusetts, will be moved to Chihuahua where Neles Automation's Jamesbury Division manufactures valves. This relocation concerns approximately 100 employees. The resulting annual savings are estimated to reach USD 5 million.

Field Controls division's Process and Energy Business Unit will concentrate its sales and marketing activities in Houston in order to serve its important refining, petrochemical and chemical customers, 45 per cent of whom are located in that area. The pulp and paper sales and marketing activities will be concentrated in Atlanta, closer to pulp and paper customers and to consolidate with the former Valmet Automation resources in the area. A new Delivery Center serving all business units, will also be established in Houston.

Following these relocations, the Jamesbury Division will move its Worcester operations to the Shrewsbury facility. Jamesbury already occupies approximately 40 per cent of this site.

The plan will be completed within two years.