Metso Corporation : Metso increases valve manufacturing capacity in China
Metso Corporation's press release on April 24, 2013 at 10:30 a.m. local time
Metso sells its shares of joint venture company to Shanghai Electric
Metso has entered into an agreement to sell its shares of its joint venture
company Shanghai-Neles Jamesbury Valve Co., Ltd (SNJ) to Shanghai Electric
International Economic & Trading Co., Ltd (SEIC), which is the other joint
venture partner. At the same time, good cooperation continues between Metso,
SNJ and SEIC as companies have agreed several future cooperation areas.
Metso will move its Jamesbury® valves production from SNJ to Metso Technology
Center in Shanghai. The change from a joint-venture based operation to
directly controlled Jamesbury business is in line with Metso's long-term
strategy to strengthen its valve production and service capabilities in
growing markets. Chinese market is world's second largest valve market with
significant growth potential. After the transaction Metso is able to
independently develop and grow its valves solutions portfolio and offer more
comprehensive customer packages.
"This transaction emphasizes the significance of the Chinese market for Metso
and Metso's commitment to increase its presence near the customers," states
Perttu Louhiluoto, President, Automation, Metso. He continues: "The Joint
Venture with SEIC was an important part of our earlier growth market strategy.
Now our focus is in building own presence in these markets. I am particularly
delighted that while we have exited the joint venture, we have agreed on
future cooperation with SNJ."
SNJ was established 1990 to produce valves and actuators under Jamesbury
product name for Chinese markets. Metso and SEIC owned both 50% of SNJ. SNJ
employs currently 284 people. The final closing of the transaction requires
regulatory approvals by Chinese authorities and is estimated to take place
during the second quarter of 2013.
During recent years, Metso has done series of investments in its global valve
offering and presence. In 2012 Metso announced acquiring a globe valve
technology and service company, Valstone Control Inc. in South Korea,
inaugurated a new supply and service center in India, and completed expansion
of its valve production premises in the US. Previous year, Metso opened a
valve technology center in Finland, and 2010 in Shanghai. Metso also has
high-class industrial valve facilities in Brazil and Germany.
Metso is the leading valve solutions and services provider. Metso's flow
control solutions include control valves, automated on/off and emergency
shut-down valves, as well as smart positioners and condition monitoring.
Metso's world-leading product brands are Neles®, Jamesbury® and Mapag®.
The Automation segment's process automation and flow control solutions meet
the growing needs of Metso's customer industries to improve production process
efficiency as raw materials and energy sources become scarcer and their costs
increase. Our global network of service experts delivers business solutions to
our customers that improve their productivity, lower risks and optimize costs.
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:
Perttu Louhiluoto, President, Automation, Metso, tel. +358 40 556 5774
This announcement is distributed by Thomson Reuters on behalf of Thomson
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information contained therein.
Source: Metso Corporation via Thomson Reuters ONE
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