Metso Makes Changes

The board of directors for the global manufacturing firm Metso Corp., based in Helsinki, Finland,  has announced plans to modify its business to more effectively reach the company’s future business targets by integrating Metso’s power business, which is part of Energy and Environmental Technology segment, with the company’s Paper and Fiber Technology segment.

The company’s recycling business, currently part of Energy and Environmental Technology, will be managed as a separate entity, and Metso will review other strategic alternatives for the division. In a conference call following the announcement, Metso’s management noted that a sale of the recycling division is a possibility.

Matti Kähkönen, Metso CEO, says, “Our order book is currently at the record high level giving us good backbone for further development. To ensure continued profitable growth and value creation of Metso, and to gain the critical size needed to be competitive, we have made decisions to sharpen our business portfolio. We are focusing on businesses in which we can have a strong global market position and in which services and technology close to the customers are decisive competitive advantages. Short and long term value creation through growth and profitability development has been the major factor in selecting the way forward. Additionally, with this decision, we aim to increase the simplicity and transparency of Metso’s businesses.”

Metso says its mining and construction business is developing strongly, benefitting from the high economic growth in the emerging markets. These countries are investing strongly into infrastructure and demanding a lot of minerals.

"The growth in mining and construction is demanding a lot of resources, and we have to be ready to invest into that and further build our global presence to support the profitable growth,” Kähkönen adds. “Our long term target is to be a leading global provider of mining technology and services”.

Metso’s board also announced managers for a number of its busienss segments. Andrew Benko will manage Mining and Construction, Perttu Louhiluoto will manage automation and Pasi Laine will manage Pulp, Paper and Power.

Laine will continue as executive vice president and deputy to the CEO. The other members of the Metso executive team will continue in their current positions.

The operative planning of the new business structure will be finalized by the end of 2011 and it will be effective as of January 1, 2012. Until then, the current reporting structure of three business segments (Mining and Construction Technology, Energy and Environmental Technology and Paper and Fiber Technology) will be in use.

More information can be found at www.metso.com.