HELSINKI, Finland, Oct. 24, 2001 (PRIMEZONE) -- Valmet Automotive will arrange a news conference on Wednesday October 24, 2001 at 1:30 p.m. Finnish time at Metso Corporation's (NYSE:MX) headquarters, address, Fabianinkatu 9 A, Helsinki, Finland.
Metso Corporation has made an agreement on sales of 10 percent of Valmet Automotive shares to ThyssenKrupp Automotive AG, one of the world's biggest automotive systems suppliers. The ownership of the shares shall pass over November 15, 2001. According to an option in the agreement, ThyssenKrupp Automotive AG has the right to acquire all of Valmet Automotive's shares during the next two years.
The automotive manufacturers outsource, increasingly, the manufacture of their specialty cars to outside partners. The partners are expected to deliver total product projects including project management, product development and engineering, supplier cooperation as well as product engineering and manufacturing.
Valmet Automotive, a part of Metso Corporation, is a contract manufacturer concentrated in development and manufacture of demanding specialty cars. Valmet Automotive's main target is to further develop our skills as a supplier of total special car projects to the car industry. In Metso's strategy, car manufacturing is not one of its core businesses and the objective has been to find a strategic partner to Valmet Automotive and thus to secure its further development.
The ThyssenKrupp Automotive AG's development know-how very well fits with Valmet Automotive's specialty vehicle manufacturing expertise. By joining these strengths the two companies will be able to offer car manufacturers complete car projects from product development to series production. Valmet Automotive will also get new contacts to eventual customers, and the partners will also build joint marketing and tender process to meet the car industry's needs.
Through the acquisition of shares of Valmet Automotive, ThyssenKrupp Automotive AG strengthens its worldwide business as a car industry systems supplier and complements its manufacturing know-how on specialty cars. Products of ThyssenKrupp Automotive are for example axles, chassis, steering and complete car bodies.
Valmet Automotive is able to start the production of new products in a record time and to produce them flexibly to demanding customers worldwide. Valmet Automotive is specialized in the development and engineering of convertible systems including the engineering of the body, interior and convertible roof. For the moment, Valmet Automotive assembles in its production site in Uusikaupunki, Porsche Boxster and Saab 9-3 Convertible models. The number of personnel is 1,600.
ThyssenKrupp Automotive AG is one of the biggest automotive suppliers with more than 120 factories in 16 countries, and their customers are the leading car manufacturers worldwide. ThyssenKrupp Automotive employs about 40,000 people. ThyssenKrupp Automotive plans, as well, the acquisition of p.a.d. Karosserietechnik GmbH, which specializes in the development of body, interior and engine techniques. ThyssenKrupp Automotive will also expand their activities in the prototype construction.
Metso Corporation is a global supplier of process industry machinery and systems. Metso's core businesses are divided between Metso Paper (fiber and paper technology), Metso Minerals (rock and mineral processing) and Metso Automation (automation and control technology). In 2000, the net sales of Metso Corporation were EUR 3.9 billion, and the personnel totaled approximately 22,000. Metso Corporation is listed on the Helsinki and New York Stock Exchanges.
Metso completed its offer for Svedala Industri AB on September 14, 2001. Svedala is a global supplier of products and services for rock and mineral processes. Metso's and Svedala's combined net sales are approximately EUR 5,400 million (in 2000) and the amount of personnel is approximately 32,000.