Metso sells its shares of joint venture company to Shanghai Electric Corporation
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
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Source: Metso Corporation via Thomson Reuters ONE