Metso has concluded an agreement to divest the panelboard business in Nastola, Finland, and MDF business in Sundsvall, Sweden, to Dieffenbacher GmbH + Co. KG, Germany. The transaction value is not disclosed. The transaction is estimated to be closed by the end of January 2008. The divestment is in line with Metso Paper's strategy to develop its profitability.
The refiner-related operations in Sundsvall, Sweden, will remain in Metso's ownership and are not included in the transaction. This unit with its 40 employees will continue to supply fiber preparation technology to the global MDF industry as a part of Metso Paper.
The panelboard operations in Finland with all its 60 employees and in Sweden with its 40 remaining employees will be transferred to Dieffenbacher.
Metso Panelboard, a part of Metso Paper business area, has been going through an improvement program since 2006, and has been able to improve its profitability and operational efficiency.
Dieffenbacher GmbH + Co. KG, Germany, develops and manufactures press systems and complete production systems for the wood-based panel industry. The 2006 turnover was EUR 260 million and the group employs over 900 people worldwide.
Metso is a global engineering and technology corporation with 2006 net sales of approximately EUR 5 billion. Its 26,000 employees in more than 50 countries serve customers in the pulp and paper industry, rock and minerals processing, the energy industry and selected other industries.
Further information for the press, please contact:
Pentti Välimäki, President, Metso Panelboard, tel. +358 40 500 5009
Further information for investors, please contact:
Olli Vaartimo, Executive Vice President and CFO, Metso, tel. +358 20 484 3010
It should be noted that certain statements herein which are not historical facts, including, without limitation, those regarding expectations for general economic development and the market situation, expectations for customer industry profitability and investment willingness, expectations for company growth, development and profitability and the realization of synergy benefits and cost savings, and statements preceded by "expects", "estimates", "forecasts" or similar expressions, are forward-looking statements. These statements are based on current decisions and plans and currently known factors. They involve risks and uncertainties which may cause the actual results to materially differ from the results currently expected by the company.
Such factors include, but are not limited to:
(1) general economic conditions, including fluctuations in exchange rates and interest levels which influence the operating environment and profitability of customers and thereby the orders received by the company and their margins
(2) the competitive situation, especially significant technological solutions developed by competitors
(3) the company's own operating conditions, such as the success of production, product development and project management and their continuous development and improvement
(4) the success of pending and future acquisitions and restructuring.