September 29, 2008

Wartsila, Metso to Form Renewable Energy JV

Finnish power engineering company Wartsila and process industry machinery supplier Metso have signed a contract to form a renewable energy joint venture combining Metso's Heat & Power business, which is a business unit within Metso Power, and Wartsila's Biopower business.

The new joint venture (JV) is expected to be one of Europe's leading providers of medium and small-scale power and heating plants, focusing on renewable fuel solutions. The closing of the transaction will require the relevant regulatory approvals, which are expected during the coming months.

Metso will own 60% and Wartsila 40% of the joint venture. It is estimated that the consolidated annual pro forma net sales of the JV would be approximately E130 million in 2008.

Through this joint venture, Metso Power, a leading boiler technology company, and Wartsila Biopower, a leading modularized power plant supplier, will combine their resources and expertise in sustainable energy production.

The technology offerings of the two businesses, Wartsila's grate and Metso's fluidized bed combustion technologies, are complementary and enable solution offerings for a wide range of fuels in power plants.

Lennart Ohlsson, president of Metso Power, said: "The general market outlook for the energy industry and especially for renewable energy production is promising. With Metso and Wartsila now joining forces, we will have enhanced capabilities to build and develop new technologies and solutions."