Stock Exchange release September 22, 2005 07:01:55 AM CET

Metso Paper establishes a sales company in India

Metso Paper has established a new sales company in Gurgaon, near New Delhi, in order to improve local customer service and strengthen Metso's presence in the emerging Indian pulp and paper market. The company will initially employ four people.
 
Metso Paper India Pvt. Ltd. offers a full range of products and services including paper, board and tissue making lines, chemical and mechanical pulping lines, rebuilds, process improvements and aftermarket services.
 
Metso Paper has supplied paper machine rebuilds, components and fiber systems to a number of producers in India since the late 1980s. The new sales office will be located in the same premises as Metso Automation and Metso Minerals. In addition to Gurgaon, Metso Automation and Metso Minerals have sales and service companies in Mumbai, Chennai, Kolkata and Bangalore. Metso Minerals has a manufacturing unit in Bawal and a foundry in Ahmedabad. The first Metso office was established in India in 1992.
 
In 2004, the total output of the Indian paper and board industry was 6.6 million tons and consumption was 7.2 million tons. It is estimated that, by 2015, production and consumption will grow at an annual average of 6 %, which is clearly faster than the estimate for global growth. The major challenges of the Indian pulp and paper industry regarding growth in demand are related to the inefficiency of the installed machine base and low capacity utilization. The annual capacity of an average paper machine in India is currently approximately 14,000 tons.
 
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 22,000 employees in more than 50 countries. Metso's shares are listed on the Helsinki and New York Stock Exchanges.
 
www.metso.com