Stock Exchange release March 8, 2005 12:02:14 PM CET
Metso to conclude a major service contract with SAICA in Spain
Metso Paper has concluded a long-term agreement with Sociedad Anónima Industrias Celulosa Aragonesa (SAICA) on maintenance and service of SAICA's mills in Zaragoza and El Burgo de Riebro, Spain, from the beginning of March 2005. The actual maintenance work will be carried out by Scandinavian Mill Service S.L, a joint venture of Scandinavian Mill Service (SMS) and SAICA. The value of the agreement is not published.
In the start up phase, SMS S.L. will be involved in mill maintenance services and workshop services. From the beginning of 2006 the scope of the operations will be extended to the roll services. Scandinavian Mill Service S.L. will employ 125 people. The main customer for SMS S.L. will be SAICA, but the services will also be sold to other pulp and paper industry customers in Spain and Portugal.
The concluded agreement is a result of Metso's aim to increase aftermarket services. It also demonstrates the trend within the pulp and paper industry to outsource their maintenance operations, while concentrating on their core businesses.
Scandinavian Mill Service S.L. is part of Scandinavian Mill Service Group, which is owned by Metso Paper. The group employs over 400 people and operates in improving and developing of the pulp and paper industry maintenance primarily through outsourcing. The group has operations in Finland, Sweden, Norway, Czech Republic and now also in Spain.
SAICA is the leading company in Spain in the manufacture and sale of paper for corrugating. It has five production centers in Spain and France with an annual production capacity of 1.5 million tons. SAICA is a family owned company and has some 5,400 employees.
Metso is a global technology corporation serving customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries. In 2004, the net sales of Metso Corporation were approx. EUR 4 billion, and it has some 23,000 employees in more than 50 countries. Metso's shares are listed on the Helsinki and New York Stock Exchanges.
Internet: www.scandinavianmillservice.com, www.saica.es, www.metsopaper.com, www.metso.com