Metso Corporation's stock exchange release on April 23, 2013 at 12:15 p.m. local time
Metso's Pulp, Paper and Power business is to initiate a global cost competitiveness program to adapt to changes in the marketplace and improve profitability. The program will target an annual cost reduction of approximately EUR 100 million by 2016.
"The program is aimed at improving our cost competitiveness in a market that is continuing to experience major structural changes," says Pasi Laine, President of Metso's Pulp, Paper and Power business. "We are also aiming to improve our profitability with the help of the program."
Permanent structural changes in Metso's Pulp, Paper and Power business' operating environment have impacted its operations and undermined its competitiveness and profitability. The underlying reasons for the situation lie in the continuing downturn in demand for paper machinery and the growing trend towards cheaper technology solutions.
"New communications technologies are continuing to weaken the consumption of printing and writing paper grades and have been reflected in a slow-down in the market for new paper machines. A lighter cost structure and greater flexibility will be essential to competing more effectively as we move forward," Pasi Laine says.
"In the power generating sector, we are also experiencing a slower investment cycle in Europe and a significant decrease in demand in North America due to low energy prices resulting from the increased use of shale gas. We must take action to reduce our overall costs if we are to be able to reach our targeted profitability level on new orders," he adds.
Planning of the program will now begin in all of Metso Pulp, Paper and Power's organisations, at all locations. As planning continues and becomes more concrete, information will be made available to employees and stakeholders in due course.
Metso's pulp, paper and power professionals specialize in processes, machinery, equipment, services, paper machine clothing and filter fabrics. Our offering and experience cover the entire process life cycle including new production lines, rebuilds and services.
www.metsopaper.com, www.metso.com/power, www.twitter.com/MetsoPulpPaper
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso's shares are listed on the NASDAQ OMX Helsinki Ltd.
For further information, please contact:
Pasi Laine, President, Pulp, Paper and Power, Metso Corporation, tel. +358 20 484 3200
Harri Nikunen, CFO, Metso Corporation, tel. +358 20 484 3010
VP, Investor Relations
NASDAQ OMX Helsinki Ltd