November 14, 2008
Metso and Waertsilae’s Joint Venture Cleared By Regulatory Authorities – Name of the Joint Venture is MW Power Oy
Metso Corporation Company release on November 14, 2008 at 1.30 p.m.
Metso and Waertsilae have received the necessary regulatory approvals from the European Commission to close the joint venture combining Metso's Heat & Power business and Waertsilae's Biopower business. The transaction will be closed on January 1, 2009, according to the agreement between Metso and Waertsilae.
The name of the joint venture will be MW Power Oy. Jorma Lehtoviita, currently Vice President, Heat & Power, is appointed Managing Director. The current Managing Director of Waertsilae Biopower Oy, Ilkka Heikkilae, is appointed General Manager, Finance and Administration.
"Now that we have received the approvals, we can start integration planning. The long-term business drivers are positive for us," says Jorma Lehtoviita, Vice President of Metso's Heat & Power business.
Metso will own 60 % and Waertsilae 40 % of MW Power Oy. It is estimated that the consolidated annual pro forma net sales of the company will be approximately EUR 130 million in 2008. The technologies of the two companies are complementary. Metso's fluidized bed combustion technology and Waertsilae's grate technology enable a solutions portfolio for a wide range of fuels in power and heating plants.
Metso and Waertsilae announced in September 2008 that they had signed a contract to form a joint venture. The company will be one of Europe's leading providers of medium- and small-scale power and heating plants with a focus on renewable fuel solutions.
Metso's Heat & Power business consists of Noviter Oy and VEA AB, both subsidiaries of Metso Power. The business unit employs approximately 100 people in Scandinavia, the Baltic countries and Russia. Metso Power designs and manufactures power generation and chemical recovery systems for energy producers and the pulp and paper industry globally.
Waertsilae Biopower, a part of Waertsilae Power Plants, supplies and manufactures biomass-fueled combined heat and power plants and heating plants. The company employs approximately 100 people in Finland. Waertsilae's engine-based power plant business is not affected by this joint venture and continues to offer a broad range of fuel-flexible power solutions.
Metso is a global engineering and technology corporation with 2007 net sales of over EUR 6 billion. Its over 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. www.metso.com
Further information for the press, please contact: Jorma Lehtoviita, Vice President, Heat & Power, Metso Corporation, tel. +358 400 623 079 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 Kati Renvall Vice President, Corporate Communications Distribution: NASDAQ OMX Helsinki Ltd Media www.metso.com
This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Copyright Copyright Hugin AS 2008. All rights reserved.
SOURCE: Metso Corporation