Stock Exchange release December 18, 2003 02:07:28 PM CET

Frantschach Pulp & Paper Czech to outsource maintenance services to Metso Paper

Frantschach Pulp & Paper Czech a.s. has agreed with Scandinavian Mill Service Czech s.r.o., part of Metso Paper, on outsourcing of the mechanical maintenance of Steti mill in Czech Republic. The agreement is an important step for Metso Paper's pulp and paper industry maintenance business in Central Europe.
The scope for Scandinavian Mill Service Czech s.r.o. includes mechanical maintenance and related purchases at Frantschach mill in Steti. Scandinavian Mill Service Czech s.r.o will employ 80 people of whom 76 come from Frantschach. When outsourcing these operations, Frantschach's aim is to increase maintenance efficiency and expertise and to create more contacts with OEMs.
Scandinavian Mill Service Czech s.r.o. is part of Metso Paper's Scandinavian Mill Service group. The group operates in improving and developing of the pulp and paper industry maintenance primarily through outsourcing. The group has operations in Sweden, Norway and Finland. Increasing amount of pulp and paper mills have outsourced their maintenance operations or are in the process of doing so. Pulp and paper customers are concentrating on their core businesses which gives Metso Paper new opportunities in increasing its service business.
Frantschach Pulp and Paper Czech a.s. (FPPC), in Steti, Czech Republic, is a member of the Frantschach Group included in Mondi Europe. FPPC produces annually 130,000 tons of market bleached pulp, 200,000 tons of packaging paper and 90,000 tons of liner. FPPC has an annual net sales of EUR 225 million and it has 680 employees.
Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The corporation's core businesses are fiber and paper technology (Metso Paper), rock and mineral processing (Metso Minerals) and automation and control technology (Metso Automation). In 2002, the net sales of Metso Corporation were EUR 4.7 billion and the personnel totaled approximately 28,500. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.