Stock Exchange release October 23, 2008 08:00:00 AM CET
Metso receives regulatory approval to increase its ownership in Valmet-Xi'an joint venture in China
Metso Corporation Press release on October 23, 2008 at 9:00 a.m.
Metso has received regulatory approval to acquire a 75 per cent ownership in its Chinese joint venture Valmet-Xi'an Paper Machinery Co. Ltd. The value of the share transactions, which were finalized in September, is approximately EUR 5 million. In addition, the joint venture will acquire certain land use rights and facilities for about EUR 8-9 million. Valmet-Xi'an Paper Machinery has become a part of Metso Paper business area and it is included in Metso's third quarter review.
Prior to the transactions Metso's ownership in Valmet-Xi'an was 48.3 per cent. Metso acquired all the shares owned by Finnfund, and part of the shares owned by the other joint venture partner, Xi'an Paper Making Machinery Works. After the transaction Xi'an Paper Making Machinery Works has 25 per cent of the shares.
The Valmet-Xi'an joint venture is an important member of Metso's production network. The company supplies narrow and medium-size paper, board and pulp drying machines mainly to the Chinese market. It also participates in Metso's other deliveries to China and other market areas. The joint venture employs 1,060 people and its annual net sales are approximately EUR 30 million, out of more than half has been sales to Metso.
By extending the joint venture agreement and by acquiring a majority ownership, Metso further strengthens its position as the leading supplier of machinery and technology to the Chinese pulp and paper industry.
Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its over 27,000 employees in approximately 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.
For further information, please contact:
Harri Nikunen, Senior Vice President, Finance, Metso Paper, tel. +358 40 828 9083