Stock Exchange release February 4, 2004 01:17:18 PM CET
METSO REVIEWS DEVELOPMENT ALTERNATIVES FOR COMPACTION AND PAVING EQUIPMENT BUSINESS DYNAPAC
In line with Metso Corporation's strategic direction and in order to strengthen Corporation's balance sheet Metso's Board of Directors has decided to initiate a review on the development alternatives for Dynapac, including a potential divestment. Construction and paving equipment manufacturer Dynapac operates as an independent business with relatively limited synergies with the other businesses within Metso Minerals.
"Dynapac is an excellent and profitable business, which has strengthened its market share in 2003 in new, growing markets such as China. However, Metso Minerals is not able to fully take advantage of Dynapac's potential", says President of Metso Minerals Bertel Langenskiöld.
Dynapac, which forms the Compaction and Paving business line of Metso Minerals, is a leading global manufacturer of compaction and paving equipment. Dynapac designs, manufactures and sells under its strong and established brand name rollers, pavers, planers and concrete and light compaction equipment and services. In 2003 the net sales of Dynapac totalled 322 million euros, which represents less than a fifth of Metso Minerals' net sales.
Dynapac has seven manufacturing plants, located in Sweden, Germany, France, Brazil and China. In addition, the company has sales and marketing outlets in approximately 50 countries. At the end of 2003 Dynapac employed some 1,800 people. Dynapac became part of Metso Corporation in 2001 as a result of the integration of Swedish Svedala and Metso's rock and minerals processing business area Metso Minerals. Dynapac was established in 1934 in Karlskrona, Sweden.
A potential divestiture would have a significant positive effect on Metso Corporation's gearing.
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 2003, the net sales of Metso Corporation were EUR 4.3 billion and the personnel totaled approximately 27,400. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.