Metso Corporation Company release on May 23, 2008 at 11.00 a.m.
Metso will expand its production capacity and office facilities in Shanghai, China, through an investment of EUR 20 million. The investment supports Metso's global presence strategy by increasing production resources in Asia's growing markets.
Metso will establish new facilities for Metso Automation's valve factory and supply center, for automation system production, and for sales, a project unit and engineering in China. About half of the investment will be allocated to a new office and factory building. The rest will be spent on acquiring machinery and equipment and on building the factory infrastructure.
The building plans will be completed late this year and the actual construction will begin next year. Operations in the new facilities will commence in early 2010. After completion of the facilities, all Metso Automation units in Shanghai will move into the same facilities. The number of employees in the units is estimated to grow by 400 and will rise to about 650 employees in 2011. Production capacity will be quadrubled from 2007 to 2011.
With the investment, Metso is responding to the rapid growth in demand for automation valves and systems, particularly in China's energy, oil and gas industry. It also enables the development of a global supply chain for valve production.
Metso made its first deliveries to China back in the 1950s. It started its own operations in China through a joint venture in the 1980s. Today, Metso operates in 16 different localities in China, where it has about 2,700 employees. Measured in net sales, China was Metso's third largest country. The 2007 net sales of its subsidiaries operating in China totaled EUR 197 million and sales to China totaled EUR 543 million. The total value of Metso's investments in China in 2006-2008 is about EUR 100 million.
Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its almost 27,000 employees in approximately 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:
Jaakko Järvistö, President, Flow Control business line, Metso Automation, tel. +358 20 483 5656
Further information for investors, please contact:
Johanna Sintonen, Vice President, Investor Relations, Metso Corporation, tel. +358 20 484 3253
Metso Corporation
Olli Vaartimo
Executive Vice President and CFO
Executive Vice President and CFO
Kati Renvall
Vice President, Corporate Communications
Vice President, Corporate Communications
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